Summary: As a real estate investment trust (REIT), Extra Space Storage (NYSE: EXR) specializes in self-storage facilities, which have been a steady and profitable segment of the real estate market. The most convenient way to buy EXR stock is through a reputable broker platform, one of them being eToro.
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About Extra Space Storage
With its headquarters in Salt Lake City, Utah, Extra Space Storage is a leading self-storage REIT in the United States. Established in 1977, it owns and operates over 2,000 self-storage properties across the country. These facilities provide individuals and businesses with secure, clean, and convenient storage options for their belongings.
The company’s business model involves renting storage units to customers on a monthly basis, generating a steady stream of rental income. They have a reputation for maintaining well-maintained facilities and excellent customer service, making them a reliable choice for investors looking to benefit from the self-storage industry’s stability.
How to buy Extra Space Storage stock: Step-by-step
Investing in Extra Space Storage stock can be a simple and straightforward process. Here are the steps to guide you through the purchase:
Step 1: Choose a brokerage
To buy EXR stock, you need to open an account with a brokerage. A brokerage is a financial institution that allows you to buy and sell stocks and other investments. There are various online brokerages available, each with its own set of features and fees.
When choosing a broker, you should first research and compare different platforms to find one that suits your investment needs. Once you do so, you can open an account with your chosen brokerage by providing your personal information and financial details.
Our go-to broker for investing in Extra Space Storage is eToro, a FinCEN-regulated platform with over 30 million users worldwide. Furthermore, the platform offers a host of solid investing features for all sorts of investors, including:
- Commission-free stock trading;
- Access to over 2,000 stocks from 17 different exchanges;
- The option to purchase fractional shares;
- A user-friendly platform that simplifies the trading experience.
Highly Rated Stock Trading & Investing Platform
-
Invest in 2,800+ stocks and other assets including 70+ cryptocurrencies and commodities.
-
0% commission on buying stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.
-
Copy top-performing traders in real time, automatically.
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eToro USA is registered with FINRA for securities trading.
Step 2: Fund your account
Once your brokerage account is set up, you need to deposit funds into it to purchase EXR stock. To do so, you can follow these steps to fund your account:
- Link your bank account to your brokerage account for easy fund transfers;
- Deposit the desired amount of money into your brokerage account. You can start with as little or as much as you’re comfortable with;
- Ensure that your funds are settled and available for trading.
Step 3: Place your order
With your brokerage account funded, you can proceed to buy EXR stock. Here’s how to place your order:
- Log in to your brokerage account and search for Extra Space Storage or use the stock’s ticker symbol EXR to find it;
- Choose the number of shares you want to purchase and the order type (market order, limit order, etc.);
- Review your order to ensure all details are correct;
- Confirm your order, and the brokerage will execute the trade on your behalf.
Note
EXR stock price today
Pros and cons of buying EXR stock
Pros
- Steady income: As a REIT, EXR generates rental income from its self-storage properties, providing consistent cash flow to investors;
- Diversification: Adding EXR to your portfolio can enhance diversification, reducing risk by spreading your investments across different industries;
- Real estate exposure: EXR allows investors to gain exposure to the real estate market without the hassles of property management;
- Historical performance: The self-storage industry has shown resilience during economic downturns, making it a relatively safe investment option.
Cons
- Market volatility: While REITs tend to be less volatile than individual stocks, they can still be influenced by market fluctuations;
- Interest rate sensitivity: REITs may be affected by changes in interest rates, which can impact their financing costs and dividend yields;
- Tax implications: REIT dividends are taxed at ordinary income rates, potentially resulting in higher tax liability for some investors;
- Competition: The self-storage industry faces competition from other REITs and alternative investment options.
Common mistakes to avoid when investing in REITs
When investing in REITs like Extra Space Storage, it’s crucial to avoid these common mistakes:
- Not diversifying: Don’t put all your money into a single REIT. Instead, diversify your real estate investments to spread risk;
- Ignoring expenses: Understand the fees associated with your chosen brokerage and the REIT. High fees can eat into your returns;
- Overlooking tax implications: Be aware of the tax consequences of REIT investments, as they can impact your overall return;
- Neglecting research: Don’t invest in a REIT without understanding its business model, financial health, and industry dynamics;
- Chasing yields: A high dividend yield may not be sustainable. So, evaluate a REIT’s ability to maintain and grow its dividend payments.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
FAQs about how to buy Extra Space Storage stock
Is Extra Space Storage a safe investment?
EXR has a history of stable performance, hence many consider it a relatively safe investment. However, like all investments, there are risks involved.
How often do REITs pay dividends?
REITs are required to distribute at least 90% of their taxable income to shareholders as dividends. They typically make these payments every quarter.
What is the minimum investment for EXR stock?
The minimum investment in EXR stock depends on the current share price and your brokerage’s requirements. Still, you can start with as little as a single share.
Can I hold EXR stock in a retirement account?
Yes, you can hold EXR stock in retirement accounts like IRAs and 401(k)s. Nevertheless, consult with your financial advisor to explore the best options for your retirement savings.
Highly Rated Stock Trading & Investing Platform
-
Invest in 2,800+ stocks and other assets including 70+ cryptocurrencies and commodities.
-
0% commission on buying stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.
-
Copy top-performing traders in real time, automatically.
-
eToro USA is registered with FINRA for securities trading.
