It may be cliché to quote the old adage ‘not to put all your eggs in one basket’, but if there’s ever an area where that becomes the dictates of wisdom, it’s in the advice to diversify one’s property portfolio.

Like a good friend doubles the joy and halves the sorrow, diversification counters and also balances the Risk-Reward see-saw of the property market. Smart investors already prize the property market but they should be encouraged to spread their footprint across a broader spectrum in the industry. Here are three recommendations:

Commercial Property

A growing awareness of the payback from diversifying one’s property portfolio to include commercial property has motivated individuals to group together to increase financial clout in order to participate. Remaining active in this sector is vital despite the slower turnaround because it comes with lower risk. Great benefits cushion the output in that commercial property serves as a retirement strategy, a source for tax breaks, or to pay mortgages on other investments.

REITs (Real Estate Investment Trusts)

Similar to stock investing, REITs offer common shares to the public, which rather than being contingent on exchange, are directed by the state of the real estate market. They are therefore continuously valued. The beauty of REITS companies is that they offer regular income streams, long-term capital appreciation and of course, our buzzword for today – diversification. This is an ideal way to diversify investment portfolios and if you’re somewhat nervous, a very good place to start.

MDUs (Multi-Dwelling Units)

Residential housing with two or more units under one roof is perhaps the easiest type of diversification. It is also smart to generate additional income from a single investment. It’s still in the familiar residential sector, but it offsets vacancy losses by providing multiple income streams. We’re looking at passive income for retirement here as well as more financial freedom.

Fear not. One unique thing about diversifying property portfolios is that there is plenty of flexibility. Yes, we may have put big bucks into diversifying, and that in an ever-changing landscape, but then again, nothing is ‘cast in stone’ and we can tweak, change, refine and improve our investment portfolio anytime, even years from now.