The most widely known and accepted upside to real estate investment trusts is probably their high yields; however, there are some additional benefits to consider.
For example, real estate investments often increase their dividends each year, providing investors with a steadily increasing stream of income. Additionally, owning real estate can be an inflation hedge. Real estate often rises in value along with inflation, so the value of your investment stays about the same regardless of inflation. And the increasing stream of income real estate trusts provide compensates for the increasing costs of inflation.
Also not immediately recognized is that professional real estate managers run the business, select the properties, handle the maintenance and leasing and the many other intricate details of the business, while the investor can dedicate his or her time and energy to other pursuits.
There is also the benefit of a “low price of admission.” The cost of buying commercial real estate on your own could be millions of dollars; but with real estate investment trusts, you have more control over your price. If you want to buy a few hundred dollars or a few thousand dollars worth of shares, you have that option.
As with any investment, there is no escaping risk. But the benefits of the variables to investing in a real estate investment trust are numerous and highlight the attractiveness of opportunity.
REIT’s referred to in this article are offered and sold only to persons residing in the United States and may not be available to residents of all states. Investments in REIT’s are offered by prospectus only. The prospectus includes investment objectives, risks, fees, expenses, and other information that any reader should review and consider carefully before investing.