Our investment styles and choices are diverse. One investor’s favorite asset class could be another’s worst nightmare. But I think a big reason why we invest the way we do is experience and personality.

This blog post is a self reflection on why I prefer REITs and why it works for me. This is not to say that it is the best investment out there. As always, you should do your own research before investing in anything.

Firstly, I’m quite impatient. I want to see the fruits of an investment right away and that is why receiving quarterly dividends from REITs suits me just fine. I really don’t have the patience to wait for price appreciation to happen. Although price appreciation (and decline) also applies to REITs, I consider them a bonus. Receiving quarterly dividends also incentivises me to continue investing instead of spending.

I’m also fairly comfortable with the level of risk found in REITs. All investments carry risk and if you lose sleep because of them, then that investment might not fit your risk tolerance – choose a different one.

I also find selling the corpus (body) of an investment to realize the returns uncomfortable. I get the idea, but am not exactly fine with it. You buy something for X pesos, sell it for X pesos more X years later at a profit. I’d much rather hold a REIT and simply continue to collect the quarterly dividends. Barring any financial emergencies that will force me to sell my REIT stocks, I intend to hold on to them for a long time.

Lastly, I really, really, really like the idea of passive income. I’m uncertain whether the point will actually come when the quarterly dividends from my REIT investments will be able to fully cover my living expenses but the possibility of that happening encourages me to continue to save and invest.