Real Estate

Revised by Ricardo Ribeiro

In a way, many people are more comfortable investing in real estate than in other asset classes. Investors in real estate aim to profit from collecting rents but also from rising prices (capital gains).

Real estate can add some protection against inflation, but it also brings additional risks. For example, it can be difficult to sell real estate investments in a hurry. Diversification is also an important issue since one needs a large amount of money to build a diversified real estate portfolio. 

You can invest directly in real estate, by buying a house for example. Alternatively, you can invest in a real estate fund or REIT, which requires less money and might solve the diversification issue.