Real estate🏠 investing is great but what happens when you don't have the £200k deposit for that £1m apartment complex you have been looking at.👨🌾 Well, REITS.
A REIT, or Real Estate Investment Trust, is a special type of investment vehicle that has aspects of both a regular stock and a real estate investment. ⠀⠀
This unique investment🚥 class offers opportunities to earn great returns from the real estate market with only a small commitment on your part.🏖 Unlike an investment property, you can start investing in REITs with a very low financial commitment.
Where can I buy a REIT?
REITs can be publicly traded just like a regular stock, so you can buy into a REIT with your brokerage account at any major brokerage.🛎🌝 ⠀
One well known REIT is Public Storage, 🏛🏢which trades on the New York Stock Exchange under the ticker symbol PSA. Shares of PSA currently go for around $200 per share. You could buy just one share for the current market rate plus any required brokerage commission. Compare that to directly investing in real estate which typically requires tens of thousands of poundss to get started, if not hundreds of thousands.🌚🌡 ⠀
REITS have one great advantage over traditional investments. This is the fact you don't have to deal with tenants or maintenance, be compliant with any rental laws or find tenants. REITS also allow you to diversify as you buy a stock which represents ownership in hundreds if not thousands of properties.🌋♨️ ⠀⠀
You can invest in different types of REITS. Some specialise in storage spaces whilst other specialize in commercial buildings or apartment complexes.
Like with all investments, REITS have tax implications. Look out for those.🌐🗺