Hello, so you want to invest in real estate? But, you don’t know which kind of real estate you want to invest in. I mean I get it. There are various different types of real estate investment available in the market. So, to make things easier for you, I am going to list down different types of real estate investments. So let’s start without further a do!
INDUSTRIAL REAL ESTATE
Industrial real estate includes properties for manufacturing and storage purposes. This type of real estate is very prevalent for big industries who want places to distribute their goods from. This is one of the main reasons factories invest in industrial real estate in different countries and states.
COMMERCIAL REAL ESTATE
Commercial real estate refers to real estate that is used for business purposes or like commercial purposes. There are different types of real estate in commercial real estate. I will name a few down for your better understanding.
- Retail real estate: This type of real estate property is mainly for people who want to run a retail business and need a place to run it from. Some examples of retail real estate are standalone shops, shopping malls, supermarkets, etc. I am not going to exaggerate a lot on this topic so as not to confuse you. So yes, retail real estate properties are those from where retail businesses run. Retail real estate is a part of commercial real estate.
- Office real estate: Office real estate is used basically for office buildings. Office real estate consists of small office spaces and huge office towers as well. Office buildings examples include: administrative offices, government offices, company offices like Deloitte, Johnson & Johnson, and many more.
RESIDENTIAL REAL ESTATE
The most popular sort of real estate is residential real estate. Usually, a common man prefers to invest in residential real estate. Now, there are a lot of reasons for it. The following are some of the reasons:
- Tangible asset: Tangible asset is the most common reason why people invest in real estate. Tangible assets have a quality of making a person feel secure unlike stocks, fixed deposits, etc.
- Extra Income Homes: The concept of extra income homes is very prevalent in modern culture and it is truly one of the main reasons why people decide to buy houses. The concept of extra income homes made people realize that residential real estate can be a really good form of investment. Basically, people turn their residential properties into co-living spaces and earn from it. Now, there are a lot of companies helping with this and one of the most trusted companies is Xtra Income Homes. They have an experience of almost 8 years and all their properties are handpicked. The returns go up to 7%.
- Capital appreciation: A very good quality of not only residential real estate but any real estate is that the property value appreciates over time unlike other assets. This quality makes residential real estate very desirable.
SPECIALISED REAL ESTATE
As its name suggests, specialised real estate is related to very special and specific sectors. Some of those sectors being the healthcare sector, the educational sector, hospitality sector and also the recreational sector. Now what comes under it? Following are some of the examples:
- Golf Courses
- Amusement parks
Now, the above mentioned real estate focuses only on these sectors and that is why it is known as specialized real estate.
AGRICULTURAL REAL ESTATE
I think after you have heard the name, it is pretty evident what type of real estate this is. Agricultural real estate generally includes land for farming, cultivation or raising livestock. I’ll just list down the type of farming or agricultural activities that might take place on agricultural real estate for information:
- Crop farms
- Livestock farming
- Agricultural processing facilities
After this, let’s go onto the next one.
MIXED-USE REAL ESTATE
Mixed-use developments integrate many types of real estate into a single complex. These properties intertwine residential, commercial, and retail spaces in a singular structure. Imagine a tower that houses high-rise homes high in the sky and stores down below at street level.
REAL ESTATE INVESTMENT TRUSTS (REITs)
This is a very important part and parcel of real estate. Real estate investment trusts let people invest in real estate without actually having to own or manage the properties.
So, basically there are REIT companies. These companies own, operate and finance income generating real estate like office buildings, shopping buildings, hotels, apartment complexes, and also industries.
People buy vacant, under developed land for investment purposes. For many, the appeal lies in the potential of future development, making the purchase of these lands a savvy investment strategy. Elegantly put, vacant land holds a plethora of opportunities ripe for the picking.
I hope that this information has been helpful in your decision-making process regarding real estate investment. Armed with knowledge on the various types of real estate investment, you can now select where to invest your financial resources. Be it residential, commercial, industrial, or raw land, each category presents its own pros and cons. It is important to weigh these factors to ensure that your investment is profitable and fits your personal goals. Remember, real estate investment is a superb method of increasing wealth and generating passive income. It is essential to take your time, conduct detailed research, and make an informed decision. Wishing you all the best in your real estate investment expedition!