05 Jul An Easy Way to Invest in Real Estate
Most investors typically invest in real estate through buying an apartment or house and renting it out. They hope that the value of their property will increase in value overtime while they receive their monthly rental checks. Some people venture into buying a piece of land, commercial property or perhaps gather enough money to buy an apartment building. However, real estate can be quite time consuming and is not very liquid if you want to sell immediately. Well, I got a nice alternative for you. They are called Real Estate Investment Trusts or commonly referred to as REIT’S. They are an investment where you can buy it as a stock and they invest specifically in real estate through properties or mortgages. I personally like Equity REIT’s where they invest in real estate properties and generate revenues from their properties rents. This means that an investor can benefit from the appreciation of the properties and participate in the profit sharing of the rentals as well. Besides offering investors a highly liquid method of investing in real estate, REIT’s also offer special tax considerations. An example of an Equity REIT that you can buy in the stock market is Vornado Realty Trust. The symbol is VNO. The stock is up 12% so far this year and they currently pay a yield of 2.9%.
Disclosure: I do not currently own any position in this stock.