What Are REITs and How You Can Use Them to Boost YourInvestment Portfolio
Popularly known as REITs or traditionally called “Real Estate Investment Trusts”, is a way to go
if you are looking for safer options to invest-in. REITs are known to provide you a lot of facilities
with little to no risk assertion. But before investing in such an old practice you must also
understand it. Even if you are not able to understand it fully, basic knowledge about it will go a
long way, plus you always take the help of an investment advisor, who will guide you through
each of your investment ventures to get you the best deals.
What is REIT?
Real Estate Trusts are either company owned or financed or operated real estate properties,
that one can easily invest in. They are an easy way for income generation and their investment
opportunities are traded just like stocks. This type of investment is perfect for people who want
to invest but are not accredited, do not have that much experience, want to have stable returns
for savings and future planning. These are mainly of two types equity and mortgage. You can
choose according to your needs and invest accordingly in your preferred REITs type.
Benefits of Using REITs for Investments
● Provides a lot of Options
When it comes to real estate, we already know how many sub-fields it has. Hence with
the help of REITs, you can easily venture-off to any category of it as you like. For
example, you can invest in health facilities, educational infrastructure, apartment
buildings, etc. Overall, if you are someone who has just entered the market and wants to
diversify their portfolio immediately, then this is the best and safest option to take.
● Easy to Maintain Transparency
As the whole process is not that big, so the overall process can be easily scrutinized and
a high level of transparency can be maintained. The procedure of REITs is easy to
understand (if you are investing in a very big property or company because then you
might need an investment advisor) and you can do most of the small investments
● Lesser Risk Assertive
Even though REITs are traded like stocks, they are not as risky as them. They are a very
stable return investment opportunity, which when done correctly, can make you be
counted in the list of wise investors.
When we look at the drawbacks of REITs, they are not many, the major one being that the
returns’ growth rate is very low and can only be expected to increase yearly. At the end of the
day, the choice is yours. But do remember to always consult an investment advisor before
becoming a part of any REITs as they help you in not only striking a fair deal but also relating
the offers with the current market scenario. If you are a beginner level investor then this is the
best way in which you can pave the way for you to have an excellent investment portfolio.