How to Invest in Real Estate Without Buying It?

Not just coastal cities, the large American inland cities, such as Buffalo, Cincinnati, and Atlanta also witnessed appreciation in the housing prices. Buffalo in New York saw a rise of 34.6%, Atlanta in Georgia 24.54%, and Cincinnati in Ohio 20.6%. After going through this, you may wonder if you have missed the bus, or there is still some chance to invest in real estate. Besides, you may not be sure whether you should become a landlord or explore other avenues when you invest in a property. 

Well, real estate investments tend to be lucrative. Hence, you don’t have to withhold yourself when you find an opportunity. Plus, you don’t have to take the traditional routes where you need to consider tenants or landlord responsibilities. You can explore various other ways too. Here is a quick view of the same.

Different types of property investment opportunities

The exchange-traded fund (ETFs)

Real estate ETFs or exchange-traded funds comprise of stocks or bonds. You can compare them to mutual or index funds for their diversification and cost-effectiveness. It can be a fantastic investment solution for those looking to diversify their portfolio. You get multiple options in ETFs. However, it is always better to do some advance research on them before you put your money in anyone.

Real estate investment trusts (REITs)

Some people prefer REITs just the way they do mutual funds or ETFs. If you don’t want to go after a physical property or become a landlord, you may find it to be an ideal alternative. Every REIT belongs to a specific real estate class, giving you an option to diversify your holdings with a long-term view. You don’t have to worry about volatile market conditions as such. Still, it would help if you were careful with what you choose. Nova Capital Realty Inc. and other leading real estate investors usually recommend consumers to stay away from the risky non-traded REITs for their steep charges, non-transparent values, and liquidity issues. 

Home construction

The limited housing options have been one of the strong reasons behind real estate market growth for over ten years. According to predictions, new house construction activities are likely to increase in the coming years too. Plus, there is a need to build neighborhoods and revamp older units. From this, you can assume that the construction industry will do well, and hence, you can invest your money here.

Real estate-focused company

A lot of property companies are not REIT, but they buy and manage real estate. You can invest in them also. However, you cannot expect good dividends from them as compared to a REIT. These companies can be hotel and resort owners, commercial real estate developers, and others. Just make sure you do thorough research on them before you buy your stock.

Studying any option that interests you is essential, no matter whether you go with traditional or new real estate investment methods. For help, you can look for suggestions from experienced investors from the field also. It can prove quite useful.


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