5 Types Of Real Estate Investments You Need To Know
While taking investment decision, you may know that property is a great source to get good profits.
But then, the question is what type of property I should buy and where shall I get the highest returns? As there are numerous types of property available, such questions are meant to arise. You should have a clear idea of the kind of yield you are interested in, for instance, you can invest in commercial buildings or retail property to get regular earnings from tenants.
Furthermore, you should take advice from real estate professionals who can guide you towards the right decision. You can consult Angus Reed, a leading professional and real estate expert. Refer Angus Reed bio to get more information.
Nonetheless, here are some of the investment options that shall guide you to buy the right type of property.
1. Residential Property: It’s surely not the case that the residential property shall give you only long-term gains. You can rent out your house to a family and earn a regular income from it. Having 12 months contract with your tenants is advised. Commonly, it is called the lease agreement. It shall not only give legal security for rental income but also binds the tenants for 12 months making you care-free for a year.
2.Commercial Property: It is one of the best options to yield higher returns. This type of investments is more expensive than the residential one, but if you have filthy amount to invest, you should surely go for commercial property. At times, it’s suggested to invest in a group that would increase the amount of investment. By investment pools, you can either have a small building constructed or get a new one to rent out.
As the amount of investment is high, the return shall also be hefty. You can rent offices to small business owners and the companies. Usually, the companies enter into leasing agreement of many years with the owners. This way, you can secure your income for years.
However, the time when the market is bullish, and the rates increase, you cannot take advantage of market prices due to the agreements.
Either way, it is advisable to get a commercial property for risk-free returns.
3.Industrial Property: There are varied property options under this category. You can invest in a warehouse, cold storage, or such other options. Such investments require additional expenditure on the same. For instance, for a warehouse, facilities like loading-unloading machines or the hydraulic polls for the ups and downs of machinery, etc. are required. The owners charge for these services differently from the tenants.
4.Retail Property: This category consists of shopping malls, store fronts, etc. Although all types of realty is quite viable, a layman always believes it to be the next feasible option after residential property. While investing in retail property, you should contemplate certain points such as the location of your mall, the theme, the eye-catching factors to be included in the mall, etc.
Considering such factors shall attract people looking for a business premise. You can charge more from the tenants once you have these perks in your mall. In particular cases, the landlords take an additional percentage of profits as well from the occupant.
5.Mixed-Use Property: It is the kind which includes almost all the above categories. Some builders construct the building with such specifications that can give them maximum return. It ordinarily includes the banks, stores, shops, and business offices, all in a single building. Such properties though demand more investment yields substantial return.
Investment in real estate does not always mean to buy the property physically. You can have the option of investing in the real estate investment trust or funds where you simply get a document in the name of investment and earn good returns through such trusts that do all the work on your behalf.
The ball is in your court. Get the best option for investment today.