The key part of an income investing strategy is to create monthly payments to your account using safe, predictable investments. This means that you create a diverse portfolio that consists mostly of low risk investments. Creating a proper portfolio generally means choosing different investments that provide an income while lessening the risk.

Unlike the buying and selling of homes, property investment is focused on real estate that creates income. This normally means property that is rented either to residents or business owners to reside or set up a company respectively. Or, it can mean holding onto a property that increases significantly in value over time.

A Real Estate Investment Trust (REIT) is a passive form of investment that is growing more popular, especially for investors who want to limit their risk. While owning property that can be rented offers considerable advantages, there is considerable risk involved with running rental space for residents or businesses. A REIT offers a different approach that may reap larger rewards depending on the intent of the investor.

Real estate has, generally, been one of the most reliable investments you can make offering both security and a good return. It can also be one of the most interesting, offering a slightly more hands-on approach. Although there are many ways to invest in real estate it’s likely that you will have a tangible asset, you can see and visit your investment property. You can even be involved in the management of your property. But it’s not for everyone.