Real Estate Investing For Beginners: 10 Best Stocks To Buy

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In this article, we will look at the 10 best real estate stocks to buy. If you want to explore similar stocks, you can also take a look at 5 Best Real Estate Stocks To Buy.

Real estate investing can be a great way to build wealth for the long term, as well as to generate passive income. For those with the means and the knowledge, investing in real estate can provide an incredible opportunity to make money. When it comes to investing in real estate, there are multiple options available. You can buy a property outright to rent out, you could purchase a property to fix and flip, you could invest in a REIT or real estate crowdfunding platform, or you could become a landlord. With each option, there are pros and cons that should be considered before making a decision.

For those starting out, investing in rental properties is a great way to begin building a portfolio. Rental properties can generate an ongoing stream of income while also increasing in value as the market fluctuates. However, it’s important to remember that being a landlord comes with its own set of responsibilities, such as finding and maintaining tenants, dealing with late payments, and understanding the laws and regulations related to rental properties. For those with more capital to invest, buying and flipping a property can be a very lucrative option. This involves buying a property, often at a discounted price, fixing it up and then reselling it for a profit.

23% Of Americans Prefer Real Estate To Acquire Wealth, But Only 12% Invested

According to a CNBC Make It: Your Money survey, 38% of Americans voted in favor of generating passive income from rental properties. 15% of respondents preferred dividend stocks and 11% of respondents voted for investing in fixed-income assets to acquire wealth. 23% of survey respondents reported that investing in real estate is the ideal way to build wealth, while 16% of respondents preferred investing in the stock market. The findings of this survey suggest that real estate is considered to be the best way to build wealth. However, in 2022, 27% of respondents reportedly invested in the stock market and only 12% invested in real estate.

Nicholas Bunio, a certified financial planner, told CNBC that “in real estate, it takes money to make money”. CNBC further noted that U.S. home prices rose 10% year over year in October 2022, however, equities tumbled by over 15% year over year in October 2022. In history, stocks have delivered stellar returns and have outperformed inflation in the long-term. However, investing in real estate, according to certified financial planner Kevin Brady, has shown that “long-term returns often match or barely exceed inflation”. Kevin Brady further told CNBC that investors “need a healthy allocation to stocks”.

Real Estate Stocks: The Best of Both Worlds

While real estate investing is a decent way to build wealth, it can be intimidating for beginners and investors with limited capital. Real estate stocks provide investors with a way to gain exposure to the real estate market without having to purchase physical real estate and therefore overcome barriers to entry.

Real estate stocks can provide investors with exposure to real estate investment trusts (REITs), which are companies that own and manage real estate properties. REITs typically pay dividends to investors and are often more liquid than buying and managing physical real estate.

Real estate stocks can also provide real estate investors with exposure to the stock market, which can provide returns that are not correlated to the real estate market. By investing in real estate stocks, investors can participate in the stock market and benefit from stock market gains without having to take on the risk of owning physical real estate. This piece will discuss some of the best real estate stocks to buy now which include Jones Lang LaSalle Incorporated (NYSE:JLL), CBRE Group Inc (NYSE:CBRE), and Cushman & Wakefield plc (NYSE:CWK).

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Our Methodology

To determine the best real estate stocks to buy, we studied the real estate industry and identified market leaders. We carefully studied these companies and looked at their operating history, balance sheets, portfolios. We narrowed down our selection to stocks with positive market sentiment. Along with each stock, we have mentioned the hedge fund sentiment, analyst ratings, and salient features that make them good investment options for investors looking to increase their exposure to the real estate sector. These stocks are ranked according to their popularity among elite money managers, from least to most.