Planning your next real estate investment is truly an exciting venture. After all, whether it’s going to be your first property or not, investment in real estate is always something to be proud of and a worthy addition to any portfolio. However, looking for the right type or property or real estate investment could get tedious as well, as there are different types which we’ll discuss in today’s blog to help you decide better.
It’s also vital to remember that these factors can have an impact on any possible gains or losses. As a result, any plot of land and its associated resources, such as water, trees, or minerals, are subject to these influences and must be carefully considered.
On most cases, customers and buyers will only consider residential or industrial properties.
Commercial
Commercial-type properties are ones that primarily involve business activity and entertainment. Commercial properties are typically held for long-term investments in order to generate profit, capital gains, or rental income.
Commercial assets include office spaces, restaurants, shopping centers and malls, stores and marketplaces, parking lots, and amusement centers such as bars, casinos, hotels, and gaming centers.
A good commercial-type property is generally placed in locations with considerable activity and traffic because these properties rely greatly on people as well, as the brands or establishments aim to secure their presence as well.
Residential
Residential properties, as the name suggests, are primarily utilized for living and housing. Family homes, duplexes, cooperatives, apartments, and even condominiums are examples of residential establishments or buildings.
Smaller commercial or utility establishments, such as coffee shops, laundries, and fast-food restaurants, can sometimes be found inside residential areas.
People are motivated to purchase real estate in the residential sector, with many aspiring to homeownership, due to the fact that this type of properties can be rented out or leased as well to generate income.
Industrial
The most common industrial-type real estate properties are storage spaces, warehouses, manufacturing factories, power plants, and shipping facilities, which are often located far from residential and commercial areas due to the nature of the business and procedures involved, in order to avoid disruption and for the safety of the general public.
It is also important to consider that the demand for industrial properties such storage spaces are generally proportionate to the development of the area around it – If for example, industrialization efforts and development plans for a given locale is focused on increasing IT-related expansions, the demand for storage spaces are expected to rise.
Raw land or plots
Plots of idle land rarely fall in price over time and hence continue to rise in value. Many investors appreciate this property because of the possibility of its undeveloped states or potential natural resources that may come from these places.
While this sort of property is typically less expensive than developed properties, particularly in residential and commercial areas, making it a viable long-term investment, it does not generate revenue on its own and is dependent on value appreciation.
Future investments and final thoughts
As a real estate investor, you have several possibilities for your investment ventures, and it is your obligation to ensure that you verify which sectors to engage with your properties and plan your business projects with them accordingly. There is no “better” option among these types because they all have advantages and disadvantages – success is determined by what you do with them and is only limited by your imagination. Liked today’s informative topic and stay on the loop for more blogs like this? Make sure to give us a call or reach out to us! We’d love to hear from you or assist you with your real estate investment projects!
