What is different between REITs and real estate holdings?

What is different between REITs and real estate holdings?

Real Estate Investment Trusts (REITs) and real estate holdings are two different investment strategies for those looking to diversify their portfolios and benefit from the real estate market. REITs are public companies that own and manage income-producing real estate and pay out a portion of their profits to shareholders in the form of dividends. Real estate holdings involve buying and selling properties, either to generate rental income or to make a profit on the sale, and are managed by the individual investor or by a property manager. REITs offer a more diversified approach to investing as they tend to invest in multiple properties, while real estate holdings are more focused and require more hands-on involvement. REITs also offer the potential for higher returns, but with less risk than real estate holdings. Ultimately, the choice between REITs and real estate holdings depends on the investor's financial objectives, risk tolerance, and investment timeline.

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