Leah Kelvin
Active member
It’s good and bad to invest in a Real Estate Investment Trusts (REITs). In this case, an investment offers diversification, income generation through dividends, professional management expertise and liquidity for easy trading as well. That said there are also some downsides or risks. For example; market fluctuations could hurt your investments’ value; real estate market dynamics might affect its profitability thus making it less sensitive to interest rate changes that can impact REIT prices; management risk which may lead to poor decision-making resulting in lower returns among others too. Therefore all these have to be taken into account by any investor before they decide on whether or not should put their money into such investments because success largely depends on how one manages his or her risks vis-à-vis rewards. Ultimately this means that although REITs present certain possible advantages we still need more information about them if we want our choices regarding where capital goes based upon knowledge rather than guessing alone.
