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You may wonder about the difference between investment in REITs and stocks. If you want to decide if REITs are right for you, you need to know the difference between the two.
It is important to remember that both REITs and more traditional stock investments will come with volatility. You will experience ups and downs in the market and you cannot get around that.
However, REITs are usually better for many investors because they tend to experience less volatility. This is because the real estate market moves much slower than other markets. Plus, REITs tend to outperform stocks on the whole. A stock can rise and fall in price in a matter of hours, which can scare investors away. And when investor flee, the value of the stock will drop in a short amount of time. But people stick with REITs long term more often, therefore, their value is usually higher which is why they are seen as outperforming other stock and investments.
You may see a faster return on your investment when you put your money into more traditional stock and commodities. The real estate market does not move as quickly. Therefore, if you want an investment that will pay you back as soon as possible, you might not be happy with REIT. You can get a sizable rerun on your investment with great each flow along the way, but it may take a bit more time. Investing in REITs will be a practice f patience for you, but since there is typically less volatility compared to stocks and other investments, you can rest easier knowing that it will play off in the long run.
REITs are known for their healthy, steady dividends which are attractive to many people. Having a steam of reliable income every moth can provide you with more financial security at any stage of life.
