One of the real estate investment opportunities is buying shares in a listed real estate company. You will become a shareholder of this one.

Purchase of shares of a listed real estate company

You can search for different companies yourself before proceeding with the actual purchase. It is better to first learn about its financial and stock market health, about its development objectives in this area. These are fundamental parameters that will help you make your choice. Other no less important criteria that must always be kept in mind are the rates of remuneration for this type of real estate investment, the tax charges and the risks to be taken into account regarding this type of investment. However, once you have trusted the company in question you have no right to look at the choice of its projects or new acquisitions. It must be remembered that investing in a real estate company through the purchase of shares has nothing to do with investing in real estate projects through crowdfunding or crowdlending. For stocks, you also have no security behind your investment. Thus, if the company goes bankrupt (even if this is unlikely for a publicly traded company), you have little guarantee as a small shareholder. Since the company is listed, it will also be affected by stock market fluctuations.

Invest in real estate funds

  When you invest in real estate funds, you can say that you buy a basket of shares of different companies. This means that you get a good return that will be the average of the returns from all the companies that are the subject of your investment. Many people find it easier to buy a fund because they do not have to choose each company individually to invest in it. The disadvantage in this type of investment is that it becomes more and more time to check in which specific companies you really invest. The fund determines which companies are the subject of the investment, and the real estate companies choose their own projects according to their interests. In addition, real estate funds often follow the economic cycle more than other funds to consider. In addition, one or more fees are usually expected when you invest in a real estate fund, which can be quite high - and can therefore absorb parts of your profit. The positive aspect is that this only requires a small capital investment and that funds have a greater risk than investments in individual stocks.