Can’t afford to invest in property? Don’t want the burden of a huge mortgage debt, yet envy the rental income that property owners enjoy? You are not alone. But the good news is that there are alternative way to get exposure to property:
Without a huge capital outlay Without having to borrow property loan Earn steady rental income, and Enjoy potential price appreciation
By investing in property stocks and/or real estate investment trusts (REITs). Property stocks are shares issued by firms whose main business is to develop and sell properties, while REITs are firms that own income-generating properties. Rents from these properties are distributed regularly as dividends to shareholders after deducting certain expenses. Not surprisingly, many income-oriented investors find REITs attractive. For the remainder of this blog, I will focus on REITs, which has proven to be a popular class of stocks among investors the world over.
There are three …