𝗥𝗘𝗜𝗧𝘀 𝘃𝘀. 𝗥𝗲𝗮𝗹 𝗘𝘀𝘁𝗮𝘁𝗲 𝗜𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁: 𝗪𝗵𝗶𝗰𝗵 𝗦𝘁𝗿𝗮𝘁𝗲𝗴𝘆 𝗪𝗼𝗿𝗸𝘀 𝗕𝗲𝘁𝘁𝗲𝗿 𝗳𝗼𝗿 𝗬𝗼𝘂?

We explored the key differences between these investment approaches, weighing the pros and cons to help investors make informed decisions.

‌Here’s a quick breakdown:

‌🏢 𝗥𝗘𝗜𝗧𝘀

✔️ Lower capital outlay—start with just a few hundred dollars on the SGX

✔️ High liquidity—buy/sell units instantly on the market

✔️ Diversification across multiple property sectors

✔️ Hands-off management—professionals handle operations

⚠️ Subject to market volatility, limited investor control

‌🏡 𝗣𝗵𝘆𝘀𝗶𝗰𝗮𝗹 𝗥𝗲𝗮𝗹 𝗘𝘀𝘁𝗮𝘁𝗲

✔️ Direct property ownership with potential for appreciation

✔️ Generates rental income (though taxable in Singapore)

✔️ Full control over tenant selection, renovations, and sales

⚠️ High upfront costs (down payment, stamp duties, legal fees)

⚠️ Requires active management, less liquidity.‌

Conclusion

REITs offer a convenient, low-barrier, and diversified way to invest in real estate, ideal for passive investors who value liquidity. Direct property investment, while demanding more capital and hands-on management, provides greater control and potential for higher capital gains tied to local market cycles. The right choice depends on your investment goals, risk appetite, and desired level of involvement.

📌 Which strategy aligns with your investment goals?‌

💬 Drop your thoughts below—what’s your preferred approach?

‌Kenny Loh is a distinguished Wealth Advisory Director with a specialization in holistic investment planning and estate management. He excels in assisting clients to grow their investment capital and establish passive income streams for retirement. Kenny also facilitates tax-efficient portfolio transfers to beneficiaries, ensuring tax-efficient capital appreciation through risk mitigation approaches and optimized wealth transfer through strategic asset structuring.

In addition to his advisory role, Kenny is an esteemed SGX Academy trainer specializing in S-REIT investing and regularly shares his insights on MoneyFM 89.3. He holds the titles of Certified Estate & Legacy Planning Consultant and CERTIFIED FINANCIAL PLANNER (CFP).

#REITs #RealEstate #PropertyInvestment #SingaporeMarkets #DividendInvesting #PassiveIncome