Final answer:
Investing in a Real Estate Investment Trust (REIT) is a suitable alternative to direct real estate purchase, providing a more hands-off investment option with professional management and diversification benefits (B).
Step-by-step explanation:
An alternative to purchasing real estate directly and finding renters is investing in a Real Estate Investment Trust (REIT). A REIT is a company that owns, operates, or finances income-producing real estate. By purchasing shares in a REIT, investors can benefit from real estate investments without the need to directly own properties or manage tenants. This is a viable economic decision where potential investors can weigh the pros and cons compared to direct home ownership and addresses the economic principle that everything has an opportunity cost. Unlike direct purchase of a condominium or townhouse, a REIT offers diversification and professional management, thus reducing the burden on individual investors to maintain the property or find renters.
An alternative to purchasing real estate directly and finding renters is investing in a real estate investment trust (REIT). A REIT is a company that owns, operates, or finances income-generating real estate. By investing in a REIT, individuals can indirectly invest in real estate without the responsibilities of property management. REITs provide a way for individuals to diversify their real estate investments and potentially earn rental income and capital gains.