Real estate investing
As an alternative investment class, real estate offers both the potential for predictable rental income, as well as the potential for longer-term investment growth.
Along with attractive risk-adjusted returns, real estate investing has historically provided investors with several valuable benefits including:
Non-correlated portfolio diversification
Appreciation like a stock with stability of income like a bond
Hedge against inflation
Inherent tax advantages
5 ways to invest
What are REITs?
Equity REITs are companies that own, manage and lease investment-grade, income-producing commercial real estate.
- At least 75% of the REIT’s assets must be made up of real property
- At least 75% of the REIT’s revenue must come from real estate
- At least 90% of the REIT’s taxable income must be distributed annually to shareholders
- Any taxes are paid directly by the REIT shareholders
But their greatest benefit is that REITs provide smaller investors with a way to actively participate in the commercial real estate sector, without the burden and risk of property management.
Real estate investing offers a tremendous opportunity for substantial returns, but can be challenging, time consuming and illiquid. Trusted advice can get you moving in the right direction. Your financial team will help develop and implement an investment strategy specifically aligned to your goals.
When investing, there is always the potential to lose money. Before you invest, make sure you understand the possible risks and rewards of the investments you're considering.