Aug 19 (edited) • Real Estate & Investment
How to Buy REITs
👉 Are you looking to buy REITs in Portugal/Europe specifically, or are you open to buying US-listed REITs (like those on the NYSE/NASDAQ) through an online broker?
This makes a big difference, because:
In Portugal/Europe, there are new REIT-like vehicles called SIGIs (Sociedades de Investimento e Gestão Imobiliária), which function similarly to REITs but follow Portuguese rules.
If you want global or US REITs, many Portuguese/European brokers (e.g., DEGIRO, Interactive Brokers, XTB) give you access to ETFs and individual REIT stocks abroad.
If you're looking to invest in Real Estate Investment Trusts (REITs), there are several effective ways to do so—both directly through the stock market and indirectly via funds. Here's a breakdown:
1. Via Brokerage Accounts
Most publicly traded REITs are listed on stock exchanges like the NYSE or NASDAQ. You can buy shares just like you would any other stock.
It’s a straightforward process: open a brokerage account, search for REIT symbols, and place your order.
Major platforms such as Fidelity, Schwab, or Vanguard provide access to both individual REITs and REIT-focused ETFs or mutual funds.
Investing in REITs like this offers high liquidity and doesn't require large capital—the shares often trade under $100.
2. Through Mutual Funds or ETFs
REIT mutual funds and exchange-traded funds pool investments from multiple investors to provide diversified exposure.
This is a great option for getting broad exposure across different property types or geographies with a single trade.
3. Through Retirement or Pension Plans
Many retirement accounts like IRAs, 401(k)s, or pension funds include REITs (or REIT funds) as part of their asset allocations.
4. Non-Traded (Public) and Private REITs
Non-traded REITs are not listed on exchanges and are often accessed via brokers or financial advisors. They typically carry higher upfront fees (around 9–10%) and may have liquidity restrictions.
Private REITs and specialized options (such as SM REITs in India) offer alternative models but may require higher minimum investments and are less liquid.
5. Crowdfunding Platforms (eREITs)
Platforms like Fundrise allow you to invest directly in real estate portfolios via eREITs, with relatively low minimums (e.g., $1,000).
eREITs can be especially appealing for direct real estate exposure without needing large capital or active management.
Why Investing in REITs Can Be Appealing
Steady dividend income—REITs are required to distribute at least 90% of their taxable income to shareholders.
Diversification and liquidity—they offer a simple way to add real estate exposure without the complexity of property ownership.
Potentially strong long-term returns—one study shows REITs delivered an average annual return of 9.53% over 25 years, compared to 7.52% for the S&P 500.
Start small and still participate—many REIT shares are affordable, making them accessible to everyday investors
Next Steps for You:
Identify your preferred access route—brokerage, fund, or specialized platform.
Choose the type of REIT that aligns with your goals: equity, mortgage, or hybrid.
Perform due diligence: review asset types, financial stability (e.g. debt-to-EBITDA ratios), and management quality.
Consult a financial advisor or tax professional, especially for non-traded or international options.
If you're based in Portugal and want locally listed REITs or access through European platforms, I can help dig into that too. Just let me know what you're aiming for—income, growth, low entry cost, tax efficiency—and I’ll point you to the most suitable options.
Best Regards,
Carlo Ferreira
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How to Buy REITs
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