REITs Versus Buy To Let

Will REITs have any effect on the buy-to-let market as an alternative option for property investors?

Amongst those wishing to invest in the property market, REITs overcome several obstacles which face consumers interested in conventional property investment. With easy access to the money, little need for a large capital outlay and a lower risk profile buy-to-let, REITs will appeal to a broad range of investors.

However, REITs won’t appeal to those serious about property investment. Those wishing to become developers or landlords will be put off by the lack of control over their investment and the more limited rewards on offer. While REITs in the US have provided comparable returns to stocks and securities, UK property investors have traditionally looked for far higher levels of return.

We predict that buy-to-let will remain popular with anyone serious about making money from property. REITs provide a lower risk, lower reward product more likely to compete with the investment trust market.

Buy-to-let is definitely not ready to be consigned to the scrap heap just yet!