Investing
August 19, 2019

Top 5 Advantages of Investing in REITs Online

Written By Mary Beth Eastman
Last updated August 19, 2019

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An REIT or Real Estate Investment Trust is an investment operated by businesses that own properties which produce income through various means. Properties such as hotels, shopping malls, warehouses, and even office buildings may be used as REITs by their owners. Instead of buying a rental property, renting it out, managing the property and collecting rent, you invest in a REIT and collect

Real estate as a whole is generally considered a good investment for most people, and REITs have certain advantages that should be explored. Online investing tools have also made it easier than ever for you to benefit from REITs. In fact, the best online investing sites let you experience complete control and management over where your money goes from the comfort of your own home.

REITs give investors just about all of the same advantages as really owning property and profiting from its appreciation. People who use common forms of investments like a 401k or Roth IRA may have REITs as part of their portfolio.

Having some REITs in an investment portfolio is a great way to add diversification. Traditional corporate stocks, energy funds, index funds, commodities, and many other types of investments really have no overlap with real estate, so the performance of all of these sectors will all be dependent on different factors at any given time. That means one sector can take a hit without affecting the rest of your investments.

REITs and real estate in general tends to be a safe investment with consistent profit margins. REITs have outperformed the market over the last few decades, meaning they are one of the safest stocks you can buy with a great chance of good returns at any given time.

The fact that REITs are both fairly stable and profitable on a long timeline means that they work well both for those planning for retirement and those who are already retired. Many other investments with similar dividends also have higher risk.

When you invest in REITs online by yourself, you can avoid hefty broker fees. Broker fees can be as high as ten percent, which significantly cuts into the value of your REITs even when they perform well. By going at it online after some basic research and self-education, you can avoid these losses.

About the Author

Mary Beth Eastman

Mary Beth Eastman serves as the content manager for Simple. Thrifty. Living, where she is dedicated to helping readers use money and credit wisely. Mary Beth believes that access to the right financial information paired with a growth mindset are essential tools for getting out of debt and building wealth. Mary Beth has a degree in Journalism from Bowling Green State University and has focused her 20-year journalism career on putting readers front and center, carefully considering their concerns and presenting information that will help them in their everyday lives. She has won numerous statewide journalism awards. Her writing on personal finance as been featured on numerous websites in addition to Simple. Thrifty. Living, including Huffington Post and Lexington Law blog. Mary Beth resides in Pittsburgh, Pa., with her family and two rescue dogs.

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