Money investment is a significant decision that should not be made without prior research and great consideration. Although there are many investment options such as gold and fixed deposit bank account, real estate investment properties are considered to be the most profitable choice.
As the world is evolving and infrastructure developments are escalating, the real estate industry is becoming a symbol of progress. From rich to poor, all prefer to invest their money in this sector. There are various types of real estate investment properties hence you must obtain sufficient knowledge beforehand to make a better decision.
Let’s have a quick look at all types of real estate properties classified into two main categories:
1. Residential Properties
Residential properties are those land assets that cannot be used for commercial purposes. For instance:
• Non-Rental Houses or Apartments: you may invest your money in buying a non-rental house or apartment especially if you live in a rental place. It will be your non-income producing asset but still, you may sell it whenever you want and enjoy considerable profits because real estate rates always go up! Investing your money in buying your own house will also save you from paying monthly rent.
• Rental Houses: this option is best for those who already own a house and want to make some monthly profits through their investment. Purchase a house that you can give on rent and enjoy the monthly income. Apart from monthly income, you can also sell it when the rates go high.
• Plots: in residential property, you also have an option of investing your money in purchasing a plot. Due to no additional cost of infrastructure, it will be cheaper than a house. You may begin the construction whenever you have money and sell it for a higher price.
2. Commercial Properties
The other category involves all those types of real estate investment properties that are used for commercial purposes and produce monthly income. Here is the list:
• Retail Shops: whether you want to start your own retail business or just want to earn a fixed monthly income, retail shop is a good option for investment.
• Leisure Property: you may also invest your money in leisure property such a restaurant, amusement park or concert hall. This type of investment can be huge hence you may consider a partnership.
• Office Buildings: you may purchase an office building for your business and if you already have an office, you may give this property on rent and earn a handsome fixed amount per month.
• Industrial Property: the last type of commercial property is industrial land that is used to build factories. Once again, this type of investment requires a considerable amount of money so you may look for some trustworthy partner.
Whether you opt for residential property or commercial, proper paper work is essential to avoid all kinds of frauds. If you don’t understand the details of property deals, hire a real estate agent for professional assistance.