Business

Is Real Estate investment trusts(REIT) a good career path?

Everyday thousands of people around the worrld contemplate and strive to choose lucrative career paths with the sole aim of making good investment and derive heartwarming profit and satisfaction while growing an acre of network. Since, the amalgamation of real estate, it has steadily enjoyed the steady influx of persons ready to venture into its open arms either as just another investment or a clearly defined career path, a passion or a hobby. Real estate investment have given birth to a large body for its legal daily operations to function more smoothly while providing its modeled services and this body is called a real estate investment trust (REIT)

Difference Between A real estate investment and a real estate investment trust

Definition of Terms should help us gain better knowlege and answer the above question more accurately.

Real estate investing involves the purchase, ownership, management, rental and/or sale of real estate for profit. Improvement of realty property as part of a real estate investment strategy is generally considered to be a sub-specialty of real estate investing called real estate development

real estate investment trust (REIT) on the otherhand, refer particularly to companies that owns, operates, or finances income-generating real estate over a wide range of property sectors and modeled after mutual funds.

Having fully understood what a career connote, your answers may vary but on a larger scale any investment with low risk chances of loosing your finances is considered a good investment and doublinga as a career will be an added advantage.

Why REIT is a good career path

REIT is primarily engaged in investing in income-generating real-estate assets or related assets and its purpose is to give investors the opportunity to make investment in real properties as well as enjoy the benefits accrued from their investment trusts.

Real estate has a high tangible value

Real estate are tangible properties, particularly lands, houses, computers, and equipment — that are valued with money. Real investment could be very much akin to investing in stocks, and if the market crashes, your investment will always be worth something but even more usually your investment will most likely appreciate over time.

An example goes thus: Otumba bought a land somewhere in Pretoria at South Africa a decade ago at , and sold it after cultivating it for a few years

Not only will the building or home itself likely grow in value, but the actual land that it’s built on will also usually be worth more over the years. In some markets, it’s not uncommon for the land to be worth more than the house that stands on it — or for the land value to continue to rise even without a house on it.

The opportunity to maximize value is in your hands

One of the best things about real estate is that you can improve a property if you want — add amenities like a pool, or improve it with an updated kitchen or bath. You can then either rent it out or sell it for more than you paid for it.
Since real estate is a tangible asset, any improvements you make to it will increase its value. Some things that bring the biggest return for your money are garage door replacements, kitchen remodels, and deck additions.

Real estate offers better returns than the stock market.
In Florida, Gilliland explains, “Real estate has been appreciating at 6% to 8% a year. Compare that to a money market investment of 1% or 2%, and real estate offers a much better return.”
Real estate is a way to diversify your portfolio.
This is another way to lower some of your risk, especially if you’re investing lots of dollars in other opportunities. Most experts recommend diversifying your portfolio so you won’t lose everything in one fell swoop if the market where you’ve most heavily invested happens to go south. Real estate is an excellent place to park some of your money — a place much safer than many other investments.

Ever hear the term, “safe as houses”? There’s a reason people use it. You can predict the cash flow of real estate investments.
Most investments don’t allow you to predict the kind of cash flow you’ll receive. With real estate, on the other hand, if you know what a property is renting for and that you have a tenant, you’ll know what your cash flow will be. As long as you keep the property occupied, you can count on that money every month. Remember, though, to budget for routine maintenance and repairs, and factor that into your yearly expenses.

Investing real estate can also have its disadvantages including: Time-consuming if you plan to rent or sell properties. Real estate isn’t a liquid asset, so you will not be able to turn into cash easily in an emergency. Needing to take on a mortgage to purchase a
Challenge of Procuring:

Investment in real estate really becomes a challenge when it comes to acquiring a variety of properties and diverse kinds of properties. But once acquired this challenge you can build a strong portfolio of your real estate investment business.
bad locations, negative cash flow, high vacancies, and problem tenants. Other risks to consider are the lack of liquidity, hidden structural problems, and the unpredictable nature of the real estate market.

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