Real Estate

Types of Real Estate Investment

When it comes to investing money, real estate investment is an oldest and most popular option. From aristocrats to commoners, all prefer investing in residential and commercial properties. As real estate business is growing rapidly, investment in this area is undoubtedly profitable. There are many investment options in real estate and it’s much important to choose a suitable one. For your ease, the two main types of real estate investment have been discussed below:

1- Non-income-producing Investment

This is the type of investment that does not generate monthly or annual income but only helps in purchasing an economically valuable asset. For instance:

Non-rental Houses

You may invest your money in purchasing a house, which you don’t mean to rent out. Either you’ll live yourself in that house or just leave it vacant for future usage.

Vacation Houses

Rich people go for domestic and foreign vacationing more often. Therefore, they purchase farmhouses, luxury bungalows and small huts at places where they visit more frequently. These properties are only used by owners during holidays and stay vacant rest of the year.

Residential or Commercial Plots

These are the properties that don’t involve any constructed structures at the moment of purchase. You may purchase a plot for future building construction or just keep it as it is and sell once the worth is increased to earn a profit.

2- Income-producing Investment

This is the type of investment that can be done solely or in a partnership to earn an income. For instance:

Rental Houses

You may purchase a house for rental purposes to earn a monthly income. Either you rent it out as a whole or just a portion, that’s up to you. You’ll also have the authority to set its rental charge according to your convenience. But keep in mind the house is your property so you’re responsible for its tax and maintenance cost.

Retail Shops

People purchase retail shops in malls and streets. They either start their own retail business or rent it out to other retailers.

Leisure Property

It includes all properties related to holidays, entertainment and vacations. People buy hotels, restaurants, theme parks and so on to earn a handsome living on regular basis. You may also lease such properties and continue paying the rent from earned income.

Office Property

People purchase offices to run a personal business and earn a handsome annual amount. They can also rent it out to other businessmen for monthly income.

Industrial Property

You may purchase an industrial property such as a factory or a plant. Mostly, industrial properties are extremely costly therefore a number of people buy it together and share the income plus profit.

All in all, real estate’s worth increases with the passage of time because of rapid development. If you want to double your savings, real estate investment is the only way to do it legally!

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