AARP Financial

Real Estate


Real estate is an increasingly popular way to diversify an investment portfolio. There are typically two ways to invest in real estate. The first is by making a direct investment in a property, such as the home you live in. Home ownership offers a number of potential advantages, including potential tax deductions for a portion of your mortgage payments and a source of equity should you need to borrow money for different financial needs.

The second way to invest in real estate is purchasing real estate securities, such as real-estate investment trusts (REITs), which are typically traded on an exchange like a stock.

What is a REIT?

A REIT is an investment company that owns and operates a portfolio of real estate investments such as shopping centers, apartments, industrial facilities, office buildings or hotels. REITs allow investors to participate in the commercial real estate market without the lack of diversification or high costs that are associated with directly owning individual pieces of property.



These articles are not meant to be a financial plan. A financial plan generally addresses a wide spectrum of financial needs including insurance, savings, investments, tax and estate planning.