The Pros & Cons of Real Estate Investment Options

My Reality India's earlier article discuss the Indian Real Estate : Direct and Indirect investment options

In this article, My Reality India, pointed out the pros and cons of rel estate investment options

Direct investment:
Pros

*  Specific cash flows from rental income

* Can target specific property types

*  Investment in the form of  physical assets

Cons

* High transaction costs

* Asset specific risk is more

* Need for a property maintaining manager

* Not easily liquidity - takes more time to sell or buy



Listed Real Estate Shares


Pros

*  Easier to diversify portfolio. In India there are more than 12 listed real estate shares available for investment

* Any time - Daily liquidity and pricing  (Market Time- 9.15 a.m -3.30 p.m, Monday to Friday)

• Transparency of reporting and pricing

• Attractive dividend yields

We 'My Reality India" gives intraday Tips for Indian Major real estate shares, Click Home Page the button Intraday Tips


Cons

* Moves more in line with short-term movements in broad equity markets

* There is no guarantee of return



REIT Preferred Stock

Pros

*  Higher dividend yields than real estate shares

*  Has a priority claim on cash flow

*  Listed on major exchanges.

Cons
• Can offer lower total returns than real estate shares

• Not easily liquidity
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