There are different types of real estate shares

With classic bearer shares, you have all the usual shareholder rights but are not known to the company by name. Ordinary shares also allow you to exercise your right to a say at the annual general meeting. If you can do without this, get the cheaper preference shares, which also yield more dividends. Registered shares with restricted transferability are tied to specific persons - it is usually not so easy to sell them without the consent of the AG.

Some trading tips

•     Look at promising future fields. Instead of investing in the owners of shopping malls, REITs with shares in properties in the warehouse and shipping sector might be more attractive. After all, the trend in our digital world is more towards ordering goods via Amazon, eBay & Co. These retailers have benefited disproportionately from the Covid crisis - and the associated property owners are following suit.
•     Innovations and visionary projects ultimately bring residential construction and leasing of industrial facilities. In the USA, for example, the REIT Innovative Industrial Properties has profited from cannabis legalisation - solely by leasing real estate to this young sector. In and around Grünheide near Berlin, Tesla's Gigafactory, which is currently under construction, could be a growth driver in residential construction and real estate for suppliers. 
•     With every interesting share package, the following applies: take a look at the history, present and future of the AG and find out about its plans. Which projects are in the pipeline and in which cities and with which building policies will investments be made?
•     Diversify your portfolio (keyword: risk diversification): If you don't bet on one horse alone, you have a clear advantage. If a supposed growth sector turns out to be a failure, the profits in another sector can compensate for the losses. In the case of real estate shares, the chances are good that the prices of most of the companies will go up in the long term.

    Read up on REITs: This special form of real estate trust combines the advantages of shares with those of funds. A disadvantage may be the susceptibility to fluctuations - in this respect REITs are equal to classic real estate corporations. On the other hand, REITs offer a high dividend payout.

    With crowdinvesting, you invest in a real estate project together with other people. The minimum participations are often lower than with other investments and are therefore well suited for smaller pockets.

Is there a specific time to buy?

After a whole decade of continuous upward trends, there was a significant slump in the market for real estate shares again for the first time in 2020. Since this was caused by an external and, above all, disappearing factor - the covid pandemic - prices can be expected to return to their peak level.

Accordingly, it is advisable to invest in exness forex broker login as long as the costs of real estate shares are low. In doing so, of course, one must proceed with caution. First, one evaluates how promisingly the desired company is positioned or has positioned itself.

Here one should also keep an eye on the political mood. Shortly before a decision is made to introduce a rent cap or a rent brake, one would be ill-advised to buy a block of shares in a real estate company operating in the respective city.

My conclusion: there is always more to real estate shares

The subject of real estate shares is a broad field, but one in which it is well worth learning. The reason for this alone is the continuous upward trend of the past decade with many millions of euros in profits. This has been temporarily dampened by the Covid pandemic, but should recover quickly.

Especially due to the current drop in prices, the moment is good to invest in the right segment before the values shoot up abruptly again in 2021. In this context, one should always keep in mind how politics relates to rental prices and new construction projects. In the residential segment, they tend to slow down the development.