With commercial property prices lower the past year, many smaller would-be landlords are considering buying rental properties as a means of making better returns than possible from other investments.
Diversified corporate bond funds of lower credit ratings, but without outlandish credit risks, still offer decent yields, as do REIT mutual funds, those which invest in real estate equity trusts.
Yet, individuals who are familiar with small properties may find bargain real estate that will offer a decent return and possible capital enhancement.
But there is a danger in holding real estate on a small basis. It may be on the form of local regulations which you should know intimately. And you must be prepared to do most of your own small repairs which can be costly when assigned to outside mechanics.
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