The investments in real estate have a lot of benefits over other types of investing, like a greater stable income, hedging against inflation and control over investment success.
Investing in real estate can be a great opportunity to increase your earnings, find a stable source of supplementary income for retirement, strengthen your financial independence or even start a new career.
Real estate investments are protected from the problems that may occur in the industry. This is one more benefit of this type of investing. Buying stocks and mutual funds has this obvious disadvantage.
There are five main categories of real estate: commercial, residential, industrial, retail and mixed-use. Residential properties are townhouses, apartments, and vacation houses. Commercial properties are skyscrapers and offices. Industrial warehouses, car washes, and storage units belong to industrial real estate. Shopping malls and strip malls are a part of the retail property. Mixed-use properties combine all the types listed above.
And beyond that, there are three more investing types: sale-leaseback transactions, mortgage lending, and real estate investment trusts.
REITs are the option that allows indirect investments. It means that you don’t need to buy the property. Real estate investment trusts are the owners of offices, apartments, shopping malls, and warehouses. The stakeholders receive the dividends that REITs gain from the properties in their possession. Investing in real estate trusts is more beneficial and less risky.