Ranked as one of the top-performing asset classes throughout history, the real estate market is a massive industry generating billions of dollars in annual revenue. Although its market performance fluctuates depending on macroeconomic trends, real estate is a fairly promising industry due to the infinite demand for office locations and homes. This factor not only provides a great opportunity for entrepreneurs to capitalize on, but it promises a steady flow of income for real estate investors. In fact, Real Estate Investment Trusts (REITs) have become a popular investment choice among retail investors to generate income without having to directly purchase property, and have exceeded $3 trillion in gross assets in the U.S. Moreover, over 145 million of U.S. homes are invested in either REIT mutual funds or ETFs.

A key merit of REITs is that they are legally required to distribute at least 90% of their taxable income annually through dividends to their shareholders. These stocks offer security to investors, as their income is generated through consistent streams of rent paid by tenants on the property. But how does investing in REITs compare to actually purchasing a house? While REITs are considered as a commercial real estate investment, a house does not produce income in the same manner and incurs more costs it requires various costs including house tax, insurance, mortgage interest and maintenance costs. Real estate offers reliable and high dividend yield, long-term capital appreciation, attractive returns, portfolio diversification and reduced risk through their low correlation with many other assets. Offering many attractive benefits, real estate stocks are becoming a crucial investment source of income stream for retirement savers and other investors. Through reading publications, you can stay up to date on real estate investing trends, and learn how to invest in these stocks.

The Real Estate Investor is a publication exploring enabling lucrative investment opportunities in the real estate industry and help develop in-depth market knowledge to make better investing decisions.