What is a significant advantage of investing in a REIT?

Investing in a Real Estate Investment Trust (REIT) provides a significant advantage because it allows for indirect investment in real estate. This means that individual investors can pool their money together to invest in a diversified portfolio of real estate assets managed by professionals. This accessibility enables investors to gain exposure to the real estate market without needing to purchase, manage, or directly maintain physical properties themselves.

Through REITs, investors can benefit from the income produced by real estate, such as rental income, as well as potential price appreciation of the underlying properties, all while enjoying liquidity—since many REITs are traded on major stock exchanges. This structure offers a pathway to participate in the real estate sector without the complexities and responsibilities that come with direct property ownership.