REITs, A Way to Invest in Real Estate Without Holding Properties: Part 2

What are the Benefits of Investing in an REIT?

There are several advantages to adding shares of one or more REITs to your portfolio:

  1. Passive income. REITs provide you with a regular income without having to actively manage your investments.
  1. You can invest in multiple properties. For example, you can find REITs that give you exposure to industrial real estate, commercial projects such as malls, office buildings, or residential buildings. Building such a diverse portfolio while actually holding properties is very difficult and takes years.
  1. High liquidity. You can sell your shares or decide to invest in more at any time.
  1. Protection against high interest rates. While products such as bonds typically lose some of their value when interest rates go up, REITs tend to gain value. High interest rates mean the economy is in good shape, which results in higher rent, higher occupancy rates for residential rental properties, and high demand for commercial and industrial properties.
  1. Ease of diversifying your portfolio. The wide range of REITs makes it easy for you to build a diverse portfolio. You can invest in several different types of properties and gain exposure to real estate markets both in the country and abroad.

Considering investing in an REIT but not sure how to start? Set up a call with us, and we’ll help you figure it out. Thanks for reading! We’ll be back with more content about REITs.

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