Real estate & REIT-like vehicles (FIBRAs, FIIs)
Mid–highWhat it is
Real estate can be owned directly (buying a property) or through listed vehicles that pool many properties or mortgages — FIBRAs in Mexico, FIIs in Brazil — traded on the stock exchange like a share, without the hassle of managing a building.
How to buy it
Direct property requires significant capital and local legal steps. FIBRAs and FIIs are simpler: buy them through any regulated broker with access to the BMV/BIVA (Mexico) or B3 (Brazil), the same way you would buy a stock.
Pros
- FIBRAs/FIIs offer diversified, liquid real-estate exposure without buying a building
- Many distribute regular income from rents
- Direct property can be a useful inflation hedge and, unlike most assets here, can be leveraged with a mortgage
Cons
- Direct property is illiquid — can take months to sell, plus significant transaction costs
- FIBRA/FII prices still fluctuate with the market, not just with rental income
- Concentration in one city or property type carries real risk, same as a single stock
A worked example
A FIBRA or FII lets someone with a modest amount of money own a small slice of, say, a portfolio of shopping malls or office buildings — collecting a proportional share of the rent income — instead of needing the full purchase price and years of hands-on management a direct property would demand.