When it comes to acquiring wealth few options are as reliable as investments. Fortune is hard to build on a wage, while investments allow us to enter a market of large transactions and tangible profits that is always moving and generating new opportunities for investors. And with the boom in housing and the re-starting economy the real estate market is one of the most lucrative investment options right now.
However, the idea of going straight into real state can be overwhelming for some, be it due to the cost, the complexity of predictions, or just due to a general lack of information on the topic. So today we’d like to clarify some ideas when it comes to real estate as well as introduce an alternative in the form of REITs or Real Estate Investment Trusts.
Real Estate vs REITs
For many of you, the concept of a REIT might be a new one, but the first thing we need to understand is that they are also a form of real estate investment. Real estate in broad terms refers to any physical property that consists of a given land and/or the buildings and resources attached to it. So land, houses, and so on all fall under the real estate banner.
What’s a REIT then? As the name implies it refers to a Trust formed for a real estate property. In this case, a trust is an arrangement where a single person manages property for multiple beneficiaries. In short, a REIT is an arrangement where multiple investors pool their funds towards a single real estate investment; allowing them to access a more expensive property through communal investment.
REITs are a very common way to invest in real estate as they are far more accessible to potential investors, and there are countless active trusts right now that you can look into like the one at InvestInKona.com.
Reasons to invest in a REIT
So why would somebody pick a REIT over traditional real estate? First and foremost it is way more affordable. Buying real estate can be challenging for certain budgets even if the rewards are well worth it. REITs provide a way for investors to take benefit from this market without needing to invest in a complete property on their own.
On top of the monetary benefits trusts in general have better returns than independent undertakings thanks to the presence of a Trustee to manage the entire project. The individuals and firms behind these REITs have ample experience in the business meaning that investments are safer and that you’ll have that experience on your side instead of trying to open a path on your own.