Options for real estate investors
An investor willing to invest in real estate is predominantly provided with direct and indirect real estate investment opportunities.
Direct real estate investment comprises of owning a physical asset and presents the appeal of ownership rights and control, consequently enabling the investor to add value over time, generate beneficial periodic returns and anticipate capital growth.
Indirect real estate investment usually renders lower transaction costs and superior tradability through transacting primarily with real estate investment trusts (REITs), residential / commercial mortgage-backed securities (RMBS / CMBS) and securities of real estate companies.
Since both types of real estate investment possess its own complexity and risk, it is crucial for an investor to properly document, evaluate, monitor and validate their real estate investment journey in order to ensure that their investments are aligned with their expectations and risk appetite.