How to Invest and Trade in Real Estate Without Buying Property

Have you ever wondered what it would be like to own a luxury hotel, oil pipeline, or large office building? Most people can imagine how these expensive projects can certainly generate profits, and by investing in Olymp Trade’s U.S. Real Estate ETF, traders can share that profitability with less risk.

Investing in the best U.S. hotels and real estate ventures is possible without starting your own construction or management business and certainly without having to invest millions of dollars. Interest in real estate investment is growing throughout the world because property assets historically increase in value.

Companies that run these ventures tend to produce consistent profits, but investing into any single entity can be risky just like stock in any company. This is why Real Estate Investment Trusts (REIT) were created. They function much like mutual funds and invest in groups of real estate centered companies in order to diversify risk. REITs then led to Real Estate ETFs where several REITs and other real estate centered company stocks could be bought.

Shareholders of these funds then receive dividends based on the amount of investment they have. All in all, it is an excellent investment tool when balancing stock and bond portfolios and works as insurance against some market fluctuations.

Imagine being able to buy shares in projects like the Saudi Real Estate Development Fund, Burj Kalifa tower, and the Pullman ZamZam luxury hotel in Mecca and share in the profits from each of the projects and the companies that manage them.

Moreover, what if you could further diversify your investment into other types of property like oil/gas pipelines, apartment complexes, or large housing development projects so you weren’t reliant on any on particular real estate centered industry?

This is exactly how the U.S. Real Estate ETF functions. Traders are able to invest in a market formed of groups of real estate centered companies that operate in the U.S. Olymp Trade allows traders to use both the Forex and Fixed Time trading platforms to profit from positive and negative movement in this trading sector.

Several macro economic factors have an impact on the U.S. Real Estate ETF. One of the most important pieces of data is interest rates since most real estate projects rely on bank financing. When interest rates are low, the ability to finance the start of large projects, renovations of existing projects, and upgrades to infrastructure that support them is significantly better.

Additionally, data on new housing construction, significant infrastructure projects like pipelines and power stations as well as taxes can have an adverse effect on the market. Tourism can also have an impact on the market since the hotel industry benefits from increased travel, which is also linked to consumer confidence.

Since April of 2019, the U.S. Real Estate ETF has seen a significant gain with a low of 84 in late April 2019 and a current price of in the area of 96, which is a 14% increase. Much of this movement can be attributed to a strong U.S. economy, good consumer confidence (which drives new home sales), tax reductions under the Trump administration, and low interest rates from real estate banks.

The ability to invest in this sector from both sides of the platform presents many great opportunities to Olymp Trade clients as they can profit from newly released data on short term trades, but also hold longer positions as the market tends to maintain trends for long periods.

The U.S. Real Estate ETF with a Times 5 multiplier on Forex trades.

15 minute chart for the U.S. Real Estate ETF for Fixed Time Trading.


Risk warning:

The information provided does not constitute a recommendation to carry out transactions. When using this information, you are solely responsible for your decisions and assume all risks associated with the financial result of such transactions.

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