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Owning your own home or an investment property isn’t the only way to gain exposure to property. A real estate investment trust (REIT) can be an effective way to dip your foot into the market.
REITs are publicly listed pooled investments. The funds are used to buy all kinds of property, from offices to apartments and hotels.
Like any publicly listed security, REITs can trade at a premium or discount to the underlying value of the assets, measured as net tangible assets (NTA). So, if the market is booming, the REIT can trade for more than what its underlying assets are worth, and vice versa.
Because they’re publicly listed and frequently traded, they provide highly liquid exposure to property – much more
