It seems to be that going with a REIT would be a better idea than buying a property myself. I'm not at the point in my financial life or career where I am ready to settle down and live in a specific town for the next 10+ years. Plus despite the fact that I can make the 20% down payment and the mortgage, that would be a huge commitment.
However if I bought a multi-unit home (2 or 3 units) and lived in one, that would save me decent money (assuming I lived in a city where I felt comfortable staying long term. Due to my career choice I may eventually have to move to a city with a high cost of living, which would be totally different than the real estate prices in the midwest). After factoring in the money I'd save on rent and the income I'd get from renters, that adds up to about $1500 in lower expenses and higher revenue on a property that may only cost me 100-130k. That is almost an 18% ROI annually (assuming the mortgage is paid off). REITs are offering closer to 2-6% a year. Even if I got a duplex, it seems like a 10% ROI in lower expenses and higher income would be pretty plausible. Most REITs don't offer that.
But like I said I'm not ready to make that kind of investment.
Are REITs a better idea than dividend stock for short/medium term investments? What do people like for short/medium term investments?
However if I bought a multi-unit home (2 or 3 units) and lived in one, that would save me decent money (assuming I lived in a city where I felt comfortable staying long term. Due to my career choice I may eventually have to move to a city with a high cost of living, which would be totally different than the real estate prices in the midwest). After factoring in the money I'd save on rent and the income I'd get from renters, that adds up to about $1500 in lower expenses and higher revenue on a property that may only cost me 100-130k. That is almost an 18% ROI annually (assuming the mortgage is paid off). REITs are offering closer to 2-6% a year. Even if I got a duplex, it seems like a 10% ROI in lower expenses and higher income would be pretty plausible. Most REITs don't offer that.
But like I said I'm not ready to make that kind of investment.
Are REITs a better idea than dividend stock for short/medium term investments? What do people like for short/medium term investments?