I'm seeing several of my friends getting into REITs and saying they're doing well, but I'm kind of uncertain because we're dealing with all this market volatility. Is it still worth starting now or should I wait?
I can't tell you "invest now" or "wait," because nobody can predict where the market's going. What matters is you being clear about how long you can leave your money sitting there without needing to touch it, because if you have to pull out when it's down, then yeah, you're looking at losses.
If your friends are doing well, it could be they got in at different times or their properties are actually generating good returns. But that doesn't mean right now is perfect timing for you - maybe it makes more sense to start small with smaller amounts instead of all at once, so you don't stress yourself out.
The problem is that you're framing this as a timing decision, like "is now good or bad," when in reality REITs work differently. The volatility you're seeing is normal, and whoever's making good money is probably been in it longer or got lucky with the properties they picked. What nobody's going to tell you is that REITs aren't as passive as they seem - there are funds and funds, some with office buildings that are struggling because people work from home now, and others with logistics that keep performing well.
If you want to start, what really matters is not putting in money you'll need in the next 3 or 4 years. REITs aren't a savings account. Plus, investing a small amount every month (over time) makes way more sense than waiting now for the market to stabilize, because nobody can predict that. The volatility that scares you today is also opportunity - when it drops, you're either buying at a higher price tomorrow or at a lower price today, depending on the timing.
The big pitfall I see is comparing returns with your friends. They might be talking about short-term gains that aren't sustainable, or they're leaving out fees and costs. Focus on what you can do long-term, pick funds with decent track records (they're not all the same), and start gradually instead of jumping in all at once.
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