The real estate industry has steadily grown over the years, and there are no signs that this trend will change anytime soon. With the growing demand for housing and real estate, this industry is one of the most lucrative investments. There are several types of real estate investments for an individual who may consider joining the industry. They include the following:
It is one of the most common types of real estate around the world. Residential properties serve the largest number of clientele in the industry with apartments, vacation houses, and townhouses. This is the most liquid and also the most competitive area.
Industrial property investment is among the most profitable real estate investment types due to the fees charged, services offered, and multiple revenue sources. These properties can house warehouses for the storage of goods and also as factories. The owner or investor has the benefit of enjoying high profits for the investment although the liquidity is not as high as in some other areas.
Most businesses and companies located both in rural and urban areas use commercial properties for their offices. This type of investment is stable as the contracts often span several years in lease agreements. The benefit of commercial property is that in case of rental fluctuations, the deal safeguards the investor. This factor is also a disadvantage since there can be no upward rent review in case of an increase in the market rate before the lease agreement expiry.
Mixed-use properties allow the investors and property owners to enter into various lease agreements with clients. Different businesses can operate in a mixed-use property entitling the owner to diversify the nature of companies operating within the property. This type of real estate investment allows the investor to control and spread investment risk. A typical example of mixed-use would be residential units in close proximity to retail space.
This type of real estate investment mostly consists of storefronts and shopping malls. The investor or property owner has the advantage of receiving a percentage of the tenant’s total sales. The tenants also pay base rent to the property owner, maximizing the investment’s returns.
Before investing in any real estate investment, the investor should carry out proper research. Getting the right location and demand for real estate is essential in deciding whether to invest. Having the correct information is the first step to being successful in the real estate industry.