Why are Real Estate Investment Trusts (REITs) better investments than actual property?

Real Estate Investment Trusts (REITs) are investment vehicles that allow individuals to invest in a diversified portfolio of income-producing real estate assets, such as apartment buildings, commercial properties, and shopping centers. Here are some reasons why REITs might be considered better investments than actual property:Diversification: 

1. REITs allow investors to gain exposure to a diversified portfolio of real estate assets, which can help to reduce risk. By contrast, owning a single property can be risky because it is exposed to fluctuations in the local real estate market, changes in interest rates, and other factors.
2. Liquidity: REITs are traded on stock exchanges, which means that investors can easily buy and sell shares in the market. By contrast, selling a physical property can be time-consuming and expensive, especially if there are few buyers in the market.
3. Professional Management: REITs are managed by professional real estate investment managers who have expertise in managing properties and maximizing returns for investors. This can be especially helpful for investors who lack experience in managing properties.
4. Access to Larger Assets: REITs provide investors with access to larger, more expensive properties that would be difficult to purchase on an individual basis. This can help to diversify a portfolio and provide exposure to different markets.
5. Potential for Higher Returns: REITs are required by law to distribute at least 90% of their taxable income to shareholders in the form of dividends, which can provide investors with a steady stream of income. Additionally, some REITs may offer the potential for capital appreciation as well.

However, it's important to note that investing in REITs does carry its own risks, including market and economic risks that can affect the performance of the underlying real estate assets. As with any investment, it's important to conduct thorough research and consult with a financial advisor before making any investment decisions.