Owning a home isn’t everyone’s dream, and that’s perfectly okay. For Childfree individuals, embracing a life outside the traditional “homeownership = success” narrative can open doors to other financial opportunities. If you’ve decided that owning a primary residence isn’t your thing, you might wonder: can I still invest in real estate?
The short answer is yes! Real estate can be a path to wealth, but buying a home isn’t the only way to get there. Let’s explore some ways you can invest in real estate without becoming a homeowner.
Owning Tenant Properties
One way to dip your toes into real estate investment is by purchasing properties to rent out. On paper, it sounds like a great plan: buy a property, rent it out, and watch the passive income roll in. But in reality, becoming a landlord comes with its challenges.
Residential landlords often face maintenance surprises, late rent payments, or even unresponsive tenants. For instance, a small water leak that goes unreported could snowball into costly repairs. You’re trusting your tenants to care for your investment, and that trust can sometimes be a gamble.
When investing in a rental property, the criteria for selection differ from buying your own home. It’s not about what you’d love to live in—it’s about what will attract reliable tenants and offer a good return on investment. If you’re ready to handle the responsibilities (and occasional headaches) of being a landlord, this could be a great option. But if managing a property feels overwhelming, don’t worry—there’s another way to invest in real estate.
Investing in Real Estate Investment Trusts (REITs)
If the thought of being a landlord makes you break out in a cold sweat, consider Real Estate Investment Trusts (REITs). These are essentially companies that own, operate, or finance income-generating properties. And the best part? They’re accessible to almost anyone.
REITs are traded like stocks, making it easy to invest in real estate without buying physical property. They’re required to pay out at least 90% of taxable income to shareholders as dividends, meaning you can earn consistent returns.
Here’s how it works: REITs pool money from investors to purchase or develop real estate. You can find REITs focused on various sectors, such as residential properties, commercial buildings, healthcare facilities, and even travel-related properties like hotels.
One lucrative area within REITs is public storage facilities. You’ve probably seen them in your neighborhood—they’re everywhere! These facilities generate impressive income per square foot. While buying one outright might be out of reach, owning shares in a REIT that includes them is entirely doable.
By investing in REITs, you can diversify your portfolio without the hands-on work of managing properties. Real estate investing made simple.
Why You Don’t Need a Primary Residence
For years, owning a home was considered the ultimate marker of financial success. But times have changed. For many, especially the Childfree community, homeownership isn’t the right fit—and that’s okay!
Staying a renter allows for flexibility and avoids the financial risks of buying in an uncertain housing market. While it’s true that homes can appreciate in value, that growth often depends on the economy and local market conditions. Plus, owning property often involves taking on significant debt through mortgages.
Investing in real estate doesn’t have to mean locking yourself into a home of your own. Options like rental properties and REITs offer pathways to grow wealth, all without the need for a mortgage or a maintenance-heavy property.
Making Real Estate Work for Your Goals
You don’t have to own a house to invest in real estate. Whether it’s becoming a landlord or diving into REITs, there are options that align with your lifestyle and financial goals. The key is understanding the risks and rewards of each approach and choosing what works best for you.
Homeownership is just one path to wealth—it’s not the only one. By exploring alternative real estate investments, you can still benefit from this lucrative asset class without compromising your financial freedom.
You’ve crunched the numbers and taken a long hard look at your budget and lifestyle, and owning a primary residence just isn’t for you. And this is perfectly okay! Childfree and permanently childless people can forge their own paths and avoid that pesky life script, and for some, it likely means that homeownership isn’t the right choice. If you opt to stay a renter, you’ll need to plan for rent increases over time, but this can be done.
But isn’t investing in real estate the number one path to wealth? It is a path to wealth, but it isn’t the only one. And plus, in many cases, when you’re investing in real estate via buying and owning actual properties (primary residences and otherwise), you’re using leverage to do so. This means you’re borrowing money and are therefore carrying debt with the hopes that your future profits will end up being much more than the cost of borrowing. Remember, homes don’t always appreciate in value, and if they do, it might take longer than you’re expecting, based on local market conditions as well as the economy as a whole. And do you really want to take on any more debt than necessary?
Let’s take a look at a few potential ways to invest in real estate that don’t involve buying your own primary residence.