Even though the recession has come to a technical end, there are still concerns about the housing market and the labor market. And, even with the extension of the first time home buyer tax credit, many are finding that they do not quite have enough to buy real estate. However, with real estate prices so low, it is a good time to buy. So what is there to do?

Real Estate Investment Trust

If you are interested in investing in real estate, but don’t have enough capital to buy property, or you are concerned about another mortgage, you can consider a Real Estate Investment Trust (REIT). REITs are basically companies that own different properties that generate income. They are traded on the stock market, and can provide you with the opportunity to get a piece of the real estate market.

There are also REIT ETFs. Exchange traded funds that are comprised of REITs can help you invest in a variety of REITs, further increasing your stake in real estate. However, you should be careful. Like all investments, there are costs and risks involved. Not to mention different tax issues. (ETFs, in general, are often low cost with pretty good tax efficiency.) But it is worth thinking about if you are interested in using real estate as a way to add a little more diversity to your investment portfolio.

Disclaimer: I am not an investment professional. This should not be construed as investment advice. All investment carries the risk of loss. Before investing, do your own research and/or consult with an investment professional.