It is really important to have a good career path in order to earn for survival and to have satisfaction in our life. While the pandemic of Covid-19 has significantly affected most of our lives, it is very obvious that one will focus on having a good career path to earn money. In any type of investment, there are some potential risks. However, compared to any other investment, real estate investment trusts can be the safest option for you for long-term capital appreciation and incredible stock returns. As the popularity of real estate investment trusts is increasing day by day, REITs also provide numerous career options. Therefore, if you are curious to know, is real estate investment trust a good career path for you, the obvious answer is yes. However, you need to understand which career option in REITs is best for you. You should also be aware of the pros and cons of real estate investment trusts. Let’s start with an explanation of what actually REITs are.
What Are Real Estate Investment Trusts?
Real estate investment trusts are the companies where a group of people invest and operate the funds. Therefore, you own a certain portion of real estate along with other investors and it can be equity or debt. In order to mitigate the risks of investment, you should diversify your investment by investing in multiple properties. In REITs, people can invest in several commercial properties such as private schools, hospitals, hotels, shopping malls, warehouses, etc. However, besides the investment in real estate, REITs provide several job opportunities. Before we discuss the job opportunities in REITs, you need to understand different types of REITs where people invest.
Types Of REITs:
There are mainly three types of REITs such as-i) Equity REITs, ii) Debt REITs or Mortgage REITs, and iii) Assets.
i) Equity REITs:
Equity REITs refer to the investment and management of finance generating properties. In the equity REITs, the company owns the properties such as shopping malls, apartments and if you invest in equity REITs, your role is to act as a financial developer. However, you don’t have to build or manage the properties. In the case of equity REITs, when the company sells or rents any property, the shareholders of the company get a percentage of the profit depending on their contribution.
ii) Debt REITs or Mortgage REITs:
When you invest in mortgage REITs, you are responsible for financing the properties. Therefore, you receive an earning from the interests of your investment and the interest rate is determined by the market performance.
Different types of commercial projects come under the category of assets REITs. Commercial properties and constructions such as hospitals, private schools, retail shops, etc. belong to the asset class. The differences in the assets are the most significant thing here.
Pros and Cons of REITs:
You need to have a clear understanding of the pros and cons of REITs before you invest yourself in a career path in real estate investment trusts. There are several advantages in choosing a career in REITs such as-
- Small investors can invest in REITs and have a good return. Therefore, if you have a little capital, that is not a big problem.
- REITs provide you the most liquid market to earn money fast and you can also sell the shares to get funds back.
- You can mitigate the risks of investment through diversification of the investment in REITs.
- The developers and managers pay their debts on time and you can trust them. On the other hand, the taxation system in REITs is very simple.
However, there are cons associated with REITs. For instance, in any investment, there are certain risks and one can face debts. On the other hand, the values of real estate can be influenced by several economic and political factors. You also need to depend on the actions of others in order to manage the debt and the properties.
Is Real Estate Investment Trusts A Good Career Path?
Despite some disadvantages of REITs, real estate jobs provide several benefits. For instance, depending on your choice, you can start your own business and set rules for your business. Even if you don’t have a monthly salary, you can earn from the profits and sales. On the other hand, you can set up your own routine for work. While you are willing to know, is real investment trust a good career path, we assure you that there are plenty of career options in real estate investment trusts. Following are the most popular REIT jobs-
The job of a property manager is the most popular job among the real estate jobs where you have to handle people’s properties. If you can provide satisfaction to your customers through handling their properties and if you possess a good knowledge about property management, this job can help you earn a lot of money.
The job of a development executive involves the development of materials and sites. As an executive, you have to deal with commercial and residential properties. This job is about teamwork and you have to work with the contractors and subcontractors. Therefore, if you have acquired certain knowledge in property development and if you consider yourself as a good team member, this job is perfect for you.
Asset managers take all the responsibilities to strengthen the financial and operational performance of the portfolio assets of the investors. To have this career, you need to have a good understanding of asset management as well as commerce, investment banking, and finance.
This is the highest paying job among all real estate jobs and as an analyst, your job is to find new opportunities for investment. Therefore, you have toanalyze the chances of growth of an investment and the development programs. As acquirement analysts analyze the financial markets, they help the investors to make effective decisions in the investment.
To answer your question, ‘is real investment trust a good career path’, we can simply say that there are plenty of opportunities in real estate jobs. With the increase in the popularity of real estate jobs, the opportunities of finding jobs are enhancing day by day. However, you have to decide which career path is suitable for you.