Imagine owning these properties…

Well, if you own shares of Robinsons Land Commercial REIT (RCR), you have part ownership of the above commercial properties and more. You also receive quarterly dividends derived from the rental income of such properties.

This is one of the advantages of REITs. It allows ordinary investors like us to participate in commercial leasing. On my own, I will never be able to afford to buy a single floor, let alone an entire commercial building such as those above. But by investing in REITs, we are able to do just that. These properties are also professionally managed and the dividends are purely passive income with very little effort on our part. REIT shares are also easily sold on the stock exchange. Moreover, REITs offer instant diversification and a single share equates to ownership in multiple commercial properties.

One can also invest directly in a rental property in the Philippines and be a hands-on landlord. It can be a condo, standalone house, a small apartment block, or even a small commercial space along the road. By doing this, you will have full control over the property, benefit fully from land appreciation and not share the rental income with other stockholders. You can also borrow to purchase a rental property and if it’s a good one, it might even pay for itself over time.

Both REITs and rental properties are worthwhile investments to consider depending on your personal circumstance and risk tolerance. You need not choose one over the other as well, investing in both would not be such a bad idea. Let me know in the comments which is your preferred investment.