Back to Blog
Real Estate is a very popular method of investing. I have often heard people claim that they want to get into real estate investing once they have the capital needed to actually buy a property. They see this as a good investment because not only do they think that their property will appreciate in value, but they also see it as a good way of increasing their cash flow as they want to rent out that property. This is a valuable goal to have, but it's not the only way to start investing into real estate.
Another great way is through Real Estate Investment Trusts (REITs). Investing into one of these allows one to put their capital into several properties and collect returns on their money. This means that one can start investing into real estate with a relatively low amount of capital and get the benefits of owning real estate without having to manage the properties themselves.
There are several amazing REITs out there one of those being Schwab's US REIT under the ticker SCHH. SCHH has increased in value by 31.43% YTD (at time of writing) although it is important to note that this has been a huge year for real estate. It also has a dividend yield of 2.11% which is a pretty awesome dividend for an appreciating ETF. This ETF is also trading at around 50 bucks a share. This ETF does trail the S&P however, but it is a relatively low risk way to get involved in real estate.
There are many other REITs to get involved in also. Vanguard has a REIT that trades under the ticker VNQ. This one has very similar numbers to SCHH. VNQ is up 31.47% YTD (at time of writing) and has a dividend yield of 2.19%. This is also a really nice dividend. This is another amazing way to get into real estate.
There are other options out there as well, but these two options in particular are relatively low risk investments that expose people to a wide variety of real estate.
Follow us on social media. Links down below.
Join our stock picker to receive all out stock market suggestions. Join at www.patreon.com/financebycwt.