Is it Smart to Invest in Real Estate if You Have Student Loans?
Conventional thinking may tell you that you must have millions of dollars in the bank if you want to invest in commercial real estate in today’s market. However, plenty of new real estate investors get started without having much cash on hand and still make a decent return on their money.
But we want to explore whether or not it’s smart to invest in real estate if you have student loans.
With a substantial portion of your income going directly to paying off your loans, finding the money for an investment property may be challenging while still keeping up with your monthly payments and other obligations.
This article will explain the nuances of real estate investing if you have student loans and why a real estate investment trust (REIT) with Reiturn may be a good option for you.
Should You Pay Off Your Loans First?
Many personal finance experts say you should pay off any high-interest debt before buying high-ticket items like cars, boats, and real estate. And they’re right; paying off your high-interest debt first gives you more money to invest elsewhere.
While you may think you can't invest in real estate during this time, you have some options that allow you to get started.
Real Estate Investment Trust (REIT)
One of the best ways to invest in real estate without buying physical property is through a real estate investment trust (REIT).
A REIT is a company that invests a pool of money into a portfolio of different real estate classes that individual investors can buy into instead of owning physical property.
Benefits of a REIT
REITs are a great option for people who have student loans but still want to participate in real estate investing. If you don’t have the capital for a 20% down payment on an investment property, REITs allow you to reap all the benefits of owning traditional real estate and more, including:
- Stable dividend yield
- High liquidity unlike traditional real estate investing
- Portfolio diversification
- Simple and transparent business model
Finding the Right REIT
If you’re new to the concept of a REIT, you may have no idea where to start.
Luckily, Reiturn is the perfect real estate investment trust for beginners and sophisticated investors alike.
You’ll work with a team of real estate experts and earn passive income without having to become a landlord.
Most private REITs require initial deposits of up to $25,000. The best part about Reiturn is that you can start investing in high dividend yield real estate with as little as $500.
Reiturn is open to accredited and non-accredited investors, so those with student loans may find that their returns will help pay down their loans if you invest with a long-term time horizon.
Visit the Reiturn website for more information on how it works and the steps you can take to start investing in real estate today.
Conclusion
As always, it's important to do your research and decide whether or not investing with student loans is right for your personal financial journey.
If you do choose to invest, a REIT is a great option to get started. Just throw some extra cash in and watch it grow over time. And hey, you may even use your returns later on down the road to pay off some of those student loans.
