Are real estate investment trusts (REITs) a good substitute for home equity?
Yes,to invest in real estate never going to suffer and it would worth you a lot so it is a good substitute for home equity. I don’t have much Idea about REITs but as per my perspective it is worth.
REITs are backed by the real estate they hold. But they’re also stocks, and money flows in and out of them a lot differently than it does with directly held real estate. As a result, REITs generally behave more like small-cap stocks than like real estate. So you don’t get the same kind diversification benefit from REITs. As your wealth increases, you should diversify your real estate holdings to include income-producing properties as well as your housing. Of course, if you have a pension, you may already have exposure to commercial property, since many pension funds put about 5% of their money into real estate.
