1. Exploring Real Estate Investments: Introduction
  2. Exploring Real Estate Investments: What Is Real Estate?
  3. Exploring Real Estate Investments: Types Of Real Estate
  4. Exploring Real Estate Investments: Characteristics Of Real Estate Investments
  5. Exploring Real Estate Investments: Advantages And Disadvantages
  6. Exploring Real Estate Investments: Buying And Owning Real Estate
  7. Exploring Real Estate Investments: Finding Investment Value
  8. Exploring Real Estate Investments: Conclusion

By Ian Woychuk, CFA

We've covered quite a few points throughout this tutorial. Below are some of the main points that were made along the way:

  • Real estate investments fall into one of the four following categories: private equity, public equity, private debt and public debt. Your choice of which one to invest in depends on the type of exposure you are seeking for your portfolio.
  • You can invest in either income-producing properties or non-income-producing properties. Any leased property is income producing, and vacant properties are non-income producing. You can still earn a capital return on a non-income producing property, just as you would on an investment in a home.
  • The major types of investment properties are offices, retails, industrials and multi-family residential properties.
  • Real estate can produce income (like a bond) and appreciate (like an equity).
  • Real estate is tangible, so it requires ongoing management. On the other hand, you also have an increased ability to influence the performance of a single investment as compared to other asset classes.
  • Some of the benefits of adding real estate to a portfolio include: diversification, yield enhancement, risk reduction and inflation-hedging capabilities. However, real estate also has high transaction costs, can be difficult to acquire and it is challenging to measure its relative performance.
  • Buying real estate requires substantial due diligence to ensure that you're getting what you expect after you close.
  • The way to determine the value of your property (other than actually selling it) is to have it appraised by an accredited appraiser.


Related Articles
  1. Investing

    Can Real Estate Stabilize Your Portfolio?

    History suggests that real estate can provide diversification and a hedge against inflation.
  2. Investing

    Real Estate Vs. Stocks: Which One's Right For You?

    There are ups and downs for both real estate and stock investments, so before diving in, know the differences between the two.
  3. Investing

    A Guide to Real Estate Investing

    Investing in real estate is a popular choice for good reasons, but it's more complicated than owning your typical stocks and bonds.
  4. Investing

    Key Reasons To Invest In Real Estate

    There has been a lot of negativity over the real estate sector since 2008. Here are the reasons why you should be investing in it.
  5. Retirement

    Is Real Estate Your Retirement's Secret Weapon?

    With stocks maybe peaking and fixed-income investments paying less and less, real estate could be the growth opportunity for your retirement portfolio.
Frequently Asked Questions
  1. What are the Differences Between Affiliate, Associate and Subsidiary Companies?

    All three of these terms refer to the degree of ownership that a parent company holds in another company. Read on to find ...
  2. What Does it Mean if the Correlation Coefficient is Positive, Negative, or Zero?

    Learn what the correlation coefficient between two variables is and what positive, negative and zero correlation coefficients ...
  3. What's the Difference Between a Market Economy and a Command Economy?

    Set by supply and demand, a market economy operates through a price system; in a command economy, governments control the ...
  4. What Factors Cause Shifts in Aggregate Demand?

    Find out how aggregate demand is calculated in macroeconomic models. See what kinds of factors can cause the aggregate demand ...
Trading Center