5 Ways to Invest in Real Estate Without Buying Properties

Wednesday, March 20, 2019, 6:00 AM | Leave Comment

There has been a general upward trend for the housing market over the past few years. This has been driven by the low mortgage rates and the ever-tightening inventories.

The housing prices have risen by over 10% on an average in various parts of the country including Buffalo (New York), Atlanta (Georgia) and Cincinnati (Ohio).

The growth is not just for the big metropolitan cities but has been throughout the coastal areas as well.

Now the real question is should you invest now or has the time already passed? Should you become a landlord in the traditional sense or would you like to avoid the hassles of dealing with tenants?

Well, the truth is you can invest in real estate without the ins and outs of the landlord work and still have massive gains; our experts point out that more growth is on its way when it comes to the housing market.

For more informational content and seminars on real estate investment do check out the DFW real estate investment association.

So here are some ways you can invest in real estate without having to own property. Let us have a look!

  1. The real estate ETF

    The real estate exchange traded fund is a collection of bonds/stocks of a single fund. These are quite similar to the mutual and index funds and have a broad diversification with a low overall cost. If you are a seasoned investor, who is looking to diversify the ETF can be a great option. You can purchase office buildings, hotels, and various properties if you do your research right and consider the possibilities.

  2. Real estate mutual funds

    Real estate mutual fund options are also available to you if you want a low cost and gain from genuine future returns. There are mutual funds like the DFREX which are backed by decades of academic research, so the risk is barely there. Diversify your real estate holdings at minimum fees with real estate mutual funds.

  3. REIT investment

    As a consumer, you can also invest in REITs. It works the same way as the real estate mutual funds and ETFs by diversifying the holdings you collect in your inventory. REITs let you do exactly what you need, have a share in the pie without holding the physical property. However, you should ideally go for the publicly traded REITs as the U.S. SEC (Securities and Exchange Commission) has issued warnings against the non-traded REITs due to their high fees, lack of liquidity and risk involved.

  4. Investing in a company

    You can also invest in a real estate-focused company. Companies own and manage real estate without operating as the REIT including hotels and resorts along with commercial developers. You can buy stocks in more than one company but only after a thorough investigation of company data and history.

  5. Home construction investment

    Much of the real estate market growth over the last decade has been the result of the limited housing inventory. The market for the construction of new homes and private property will continue an upswing for the next few decades. You can invest in the construction side of the industry, and it will be a really smart move.

There are many more options when it comes to real estate investment, so which one would you go for?

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