Real estate is among the most popular and oldest asset classes. Many new investors in the industry know this better. However, most of them don’t know that there are different kinds of real estate properties you can invest in.
Each kind of real estate property has its pitfalls and benefits, including lending traditions, standards of what is considered normal/appropriate, and unique quirks in cash flow cycles.
So to help you make a quick and wise decision, the following are types of real estate properties you may invest in:
Commercial
This kind of real estate property is a space leased or rented by businesses. Office buildings rented by gas stations, strip malls, leased restaurants, and a few unique companies are perfect examples of commercial real estate properties.
Unless a business owns the building, every company will pay rent to the owner. Retail and industrial real estate may fall under the commercial umbrella.
Industrial real estate generally refers to all properties where products are housed or made instead of sold, such as factories and warehouses. On the other hand, retail restate estate is where customers may purchase a service or product, such as clothing stores.
Commercials have longer leases than residential real estate properties and usually command more rent. Investing in commercial real estate properties may also mean steadier long-term and higher income for property owners.
Houses and Lands
It is not rocket science to know that people buy apartments or houses for residential reasons. But when investing in properties, looking into house and land packages in Drouin that offer both house and land combos is advisable.
There are several reasons why house and land packages are much better than purchasing an apartment alone or a standalone house. Some of these reasons include the following:
- Savings on the stamp duty
- Choosing block and design
- Easier to budget
- Cheaper
- Saves time
REITs
REITs (real estate trust investments) refer to companiethatch operate as trusts and normally oversee several real estate investments. Unlike many real estate investment options, REITs are regarded as passive investments.
Instead of owning the properties yourself, you may invest in REITs and even generate income from properties that the company manages. REITs may specialize in commercial properties, including hospitals, offices, and malls, to name a few.
Crowdfunding Platforms
These platforms give investors access to real estate properties with significant risks and high returns. They need you to be an accredited investor to be part of them.
But the good news is that some platforms can allow you to access different investment opportunities as a non-accredited investor. This means this kind of investment might suit people who don’t meet financial criteria.
Over to You!
As the population grows globally, the demand for homes and other real estate assets continues to increase. This makes it important to start your investment as early as possible to land the best deals for all your preferred properties.
