Real Estate Stocks: What They Are and How To Invest In Them
I stumbled across a statistic that caught my attention: “
Over 90% of millionaires have real estate in their portfolio
On the next slides, I want to highlight REITs, which are a collection of real estate stocks. Keep on reading to learn more!
Real estate stocks can involve any publicly traded stock for a business that touches the real estate market in some shape, form, or fashion.
What Are Real Estate Stocks?
A major advantage of investing in real estate stocks is that you don’t have to have as much money to get started as you would directly buying the physical property.
Buying Real Estate Stocks
A REIT, or real estate investment trust, is a company that owns, operates, or finances income-producing real estate.
What About REITS?
payout at least 90% of their income as dividends
. As you can imagine, this is the main reason why investors put their money in them.
Advantages of Buying Stock in a REITs
The federal government taxes dividends at a lower rate than ordinary income, but that dividend tax benefit doesn’t apply to REIT holdings.
Disadvantages of Buying Stock in a REIT
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