Hi Everyone,
I wanted to get everyone’s views on use of REIT as income generation tool post retirement. FD and other debt instruments have fixed interest which stays same over the years. REIT income has potential to increase by 14-15% every 3 years. They also continuously raise debt for new space / redevelopment. So REIT income can potentially keep up with inflation over long period.
This makes REIT a commercial real estate without hassles of managing one. In my opinion, this makes REIT a very attractive income option. In world of retirement income generation, where safe withdrawal rates of 2.5-3 and 4 are discussed, I think having decent allocation to REIT can increase one’s safe withdrawal rate (or reduce required portfolio size).
I understand we are still at early stage of REIT in India and there are risks involved. Would like to hear everyone’s views.
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