Real Estate Investments — Overview & Comparison
Real estate offers cashflow (rent/distributions) and capital appreciation. It allows leverage (loans) but is often illiquid and paperwork‑heavy. Choose an option aligned to your horizon, effort, risk, and tax situation.
Cashflow vs AppreciationLeverage & EMIDue Diligence
- New investors: start with REITs or a modest residential unit.
- Cashflow focus: commercial, REITs, fractional CRE.
- Higher risk/return: RE AIFs, short‑stay rentals.
Comparison
| Type | Yield | Appreciation | Liquidity | Risk | Ticket | Effort | Guide |
|---|---|---|---|---|---|---|---|
| Residential | 2–3% | 5–7% | Low | Low‑Med | High | Semi‑active | Open |
| Commercial | 6–10% | 5–8% | Low‑Med | Med | High | Semi‑active | Open |
| Plots/Land | — | 8–15% | Very Low | Med | High | Passive | Open |
| REITs | 6–8% | 3–6% | High | Low | Very Low | Passive | Open |
| Fractional CRE | 8–12% | 3–6% | Low | Med | Medium | Passive | Open |
| RE AIFs | — | 12–18% IRR | Very Low | High | Very High | Passive | Open |
| Farmland | 6–10% | 5–12% | Low | Med | Medium | Semi‑passive | Open |
| Airbnb/Service | 10–25% | — | Medium | High | Medium | Active | Open |
Education only; not investment advice.