Investing For Beginners – Free Investment Articles and Tutorials

Learning how to invest in real estate is a great skill to learn because it usually has a pretty decent record of running counter to stock investments. In 2000, for instance, when the S&P 500 was down and the Nasdaq was also doing poorly, the National Association of Real Estate Investment Trust Index was up almost 27%.

Most people already have a real estate investment that they call their home. If your home has appreciation potential then you may not need to add other real estate to your portfolio. Nevertheless, investing in property beyond the home can be an excellent way to add real estate to your portfolio.


In fact, a good strategy can be to borrow against your home to buy another property and then add a third property by refinancing the other two. A person can live in the cheapest of the three homes and rent out the other two.

Those who prefer to buy real estate through securities typically look at real estate investment trusts, or REITs. These typically trade on the stock exchanges and are similar to mutual funds. The most important question about REITs is whether they reflect real estate as an asset or not.

Many financial planners believe that real estate belongs in client portfolios. They also believe that REITs act sometimes like stocks and sometimes like bonds. They’re very good income-oriented investments for many people and they have a lot of appreciation potential.

In fact, the largest REIT, Simon Property Group is a great REIT and many investors can do themselves a favor by starting right there. Financial planners who use real estate often buy through real-estate mutual funds but most of these funds carry hefty load charges.

Vanguard REIT Index Fund is another good alternative REIT that has no load and a very low expense ratio. If you are hoping to learn how to invest in real estate, look no further than the big name REITs and you won’t be disappointed.

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