It is no secret that the REIT sector has taken it on the chin last year. The sharp surge in interest rates, along with the presence of high inflation, act as strong headwinds for the asset class. However, this phase should be viewed as a temporary event that should eventually pass. Although sentiment for REITs is weak right now, you should keep these seven reasons in mind as to why they still constitute a great income-generating instrument.

1. Exposure to different classes of properties

REITs allow you to gain exposure to many different types of property. If you purchase physical property, you will normally only have access to either commercial properties such as shophouses or residential properties such as HDB flats and condominiums. Investing in REITs opens you up to a wide range of property types such as industrial, healthcare, and hotels. For example, investing in a healthcare...