Types of Real Estate Investments

Posted by on Nov 28, 2017 in Uncategorized | Comments Off on Types of Real Estate Investments

Types of Real Estate Investments

When you want to invest in a property, ask yourself what type of property is it- residential homes, commercial, warehouses, office building, or a combination of these. Each type of investment has an underlying characteristic that defines its value. But the most important criterion is the location. Properties that are built in great location have a better value than the rest.
You also need to understand that property investment can be an income-generating or non-income producing investment. The income-producing investment comes in the form of offices, residential for lease, retail, and industrial spaces. Lesser known income-generating properties include hotels, warehouses, lodging houses and parking space.

On the other hand, non-income generating investment includes houses, vacation houses, and commercial buildings bought by the owner but not leased to other businesses. Investing in non-income producing properties can be tricky as you will only rely on its appreciation value. If you will buy a non-income producing property in debt, you will sacrifice your personal income to pay for its mortgage.
Now that you understand what to look for when purchasing a property for investment, here are the types of real estate that you can invest in:

Office Property
This is the most popular type of real estate property investment. If the property is nestled in sprawling suburban office parks, you can never go wrong putting your money in office property. Most companies want their offices to be in the center or somewhere near the central business district in a city.

Retail Property
Shopping malls, boutique, or even small store spaces are examples of The Graves Group retail properties. Retail properties must be near both the commercial and residential areas so that many people will go to them. They must have greater visibility and accessibility to stay relevant.

Industrial Property
The best thing about investing in some industrial property is that it doesn’t have to be located in prime areas. Some industrial properties are being built outside the city for safety reasons; say a medical lab or a chemical plant. Other great attributes of industrial property investment include less maintenance cost, less management intensive and has lower operating costs.

Multi-family Residential Property
If you are looking for a steadier source of income, a multi-family residential property is a great option. No matter what the economic condition is, people always need a place to live. Another factor that makes the residential property more stable is that if the tenant moves out, the effect on your income will be minimal, whereas if you will lose a tenant in other type of property investments, the effect can be hugely felt.