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REITs as investment tools in Florida

Many Florida residents may like to invest in real estate but believe they can't afford to do so. One possibility for real estate investment is investing in a real estate investment trust. Doing so is a way in which people can invest in real estate without actually purchasing property.

REITs are companies that own or provide financing for property that produces income. Most of these companies are public and are traded on the stock market. People are able to by shares in them just as they would any other type of stock. REITs normally provide a consistent income stream to investors, making them a good choice for overall investment portfolios.

Unlike bonds, REITs typically do well when interest rates increase, as many people expect will happen at some point in 2015. When rates go up, so do occupancy rates and rents as the economy strengthens, which translates into more income produced by the properties. Many advisers believe that REITs should be a part of every investor's portfolio. They recommend that people have investments in REITs of about 5 to 15 percent of their overall portfolio.

When a person is interested in investing in commercial real estate, a REIT may be a good option. Purchasing shares in a company that already owns such income-producing property may provide a means to getting good returns while not needing to actually purchase the property itself. Those who are interested in investing in REITs may want to speak with a real estate attorney for assistance in identifying strong-performing companies that might provide better returns than some other more traditional investments such as bonds or certificates of deposit.

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