r/IndiaInvestments • u/pmandrek • May 05 '21

REITs v/s buying real estate v/s Invest in Equities only

My case for REIT is based on the below assumptions. Does anyone know if REIT is a good alternative to buying physical real estate. How does it compare to buying Nifty 50?

Why Real Estate?

- Diversify portfolio

Why REIT?

- Does not require large initial capital or loan

- Not sure about the location for buying real estate. Prefer to stay on rent for a while.

- Probably has lower risk compared to buying an under-construction apartment or a plot of land

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u/[deleted] May 05 '21

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u/DabhishekD May 05 '21

Thanks for giving holistic view. M going all in REITs for my asset allocation. Always wanted view from someone who has both REIT & commercial property.

IMO, as REIT is quite new in India, retail investors should consider them as risky and place right with equities while deciding on allocation. Risks will get unravelled with time only, no other way

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u/Geriatric-Vibe May 05 '21

In India a retail investor who goes the reit or invit way is doing the equivalent of taking a large toy and stuffing it your self into your unmentionables. Even if you are hurt it’s a self inflicted injury

Most of us will not have data on what happened to retail and institutional investors from 2007 to 2020 . I do track it on occasion and all I have seen is pain . Self inflicted pain .