How to invest in a Real Estate Investment Trust

 

How to invest in a Real Estate Investment Trust 

As I said in my last article about Real Estate Investing, Real Estate Investment Trust or REITs for short, are a great way to invest in Real Estate.

Real estate has been a popular investment among many people over generations. The idea of owning a piece of something tangible excited people. However, this was often only something afforded to the affluent. However, that is no longer the case.

Real Estate Investment Trust
Image by Arek Socha from Pixabay

What is a Real Estate Investment Trust? 

A REIT is a company that owns land/ buildings that generate income. They can also finance real estate and earn an income from the interest charged in some countries. These investment vehicles offer a way to invest in the property market with little money.

Benefits of a REIT? 

REITs are often managed by good investment companies that offer diversification that you would struggle to get on your own. Their expertise helps make your life easier. They are also publicly traded on the stock exchange making them easy to buy and sell, unlike regular property that can sit on the market for ages. They also allow a stable cash flow in the form of regular dividends.

Downsides? 

REITs tend to have low growth which can frustrate some investors. They can also charge high fees depending who is managing the portfolio.

How to Invest in Real Estate Investment Trusts? 

Investing in a REIT is easy with many brokers and FSPs offering REITs. So the best way to invest would be to chat with your advisor about your options and what best suits you needs and goals.

Now you know how to invest in a Real Estate Investment Trust! With this option you can explore the possibility of investing in property with little money. Talk to your advisor today.Stay safe and Invest Wisely!

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