What is a real estate investment trust (REIT), and should I invest in one?
What is a real estate investment trust (REIT), and should I invest in one?
A real estate investment trust (REIT) is a company that owns, operates, or finances income-generating real estate. REITs allow investors to earn dividends from real estate investments without directly owning or managing properties. They can be an excellent option for diversifying your portfolio, offering liquidity and passive income. However, like all investments, REITs carry risks, such as market volatility and interest rate sensitivity. Evaluate your financial goals, risk tolerance, and the specific REIT’s performance before investing to ensure it aligns with your overall strategy.