It can be tempting to want to avoid investing in real estate. Traditional forms of real estate investing like buying rental properties can be difficult since they often require substantial down payments. Other forms of real estate investments like real estate investment trusts (REITs) and REIT exchange-traded funds (ETFs) have seen losses too.
The MSCI US REIT index, which tracks domestic REITs, is down 8.34% since the beginning of 2022. Regardless, real estate offers several long term advantages like tax deductions and cash flow. It’s also important to invest in the right real estate, meaning sub niches that are more likely to continue to be in demand.
