5 Alternative Ways to Invest in Real Estate

Real estate investing can help people in generating enormous wealth. Lucrative returns are offered by purchasing rental properties and by flipping homes. Many people are not interested in remodeling real estate foreclosures because it involves a lot of repair costs. There are a lot of alternatives that people can consider for investing in a real estate market. People can invest in the real estate market through the stock market. Here is how one can invest in real estate through the stock market.

Home Builder Stocks
There are many home building companies that trade public stocks on the Wall Street every day. A small quarterly dividend is paid by these companies to the stock investors. The prices of the stocks fluctuate with the rise and fall in the real estate market. 2015 has so far been a wonderful year for real estate market.

Real Estate Exchange Traded Funds (ETF)
There exists a fear amongst individuals when it comes to investing in stocks as the prices are quite volatile. The volatility can be tempered by purchasing an Exchange Traded Fund (ETF). This fund refers to a basket of stocks from similar companies. If you wish to invest in Home Builder stocks and are afraid as to which one would give you better return, it is best to invest in a dozen of real estate stocks offered by various home builders. In this way, the losses wouldn’t impact you much, if any.

Real Estate Related Retail Stocks
The performance of real estate market significantly affects the retail stocks. Even if people aren’t selling properties, they may invest in renovation. So the companies do well even when the real estate market is bit low.

Housing Materials Companies
The boom in real estate market greatly influences the companies that deal with the manufacturing of building materials that are greatly used in commercial and residential structure construction. These companies even perform well in lean years. The stock appreciation in this case is dependent on the weather conditions. When tornadoes, hurricanes and other natural calamities destroy houses, a lot of construction material is used up for rebuilding properties. When the demand for building materials go up, the stocks of these company perform exceeding well and the shareholders also proper.

Real Estate Investment Trusts (REIT)
Real Estate Investment Trusts refer to stocks of the companies that provide income on a monthly basis. These companies usually own real commercial real estate properties such as strip malls, office buildings, apartment buildings or storage units. REITs offer high yield dividends. These generate a decent income even when the real estate market is performing badly.

There are several options for one to choose from when it comes to alternative investments in the real estate market. These options are quite safe and offer a decent return even when the real estate market is not performing well. All types of real estate investors can safely invest in the real estate stocks based on their interest and the kind of returns they are expecting.


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