Types of Real Estate Investments

Real Estate Investment has been one of the most profitable types of investment. The investment value changes from time to time therefore it is essential to have consummate knowledge about the current market trend. For a fruitful real estate investment, one should keep a track of the market scenario. The price of the investment is driven by the supply and demand. Before investing in the real estate you should know the different types of real estate investments.

Below are the major types of different real estate investments:

Residential Real Estate?Investments:
A residential property comprises properties like houses, apartments, buildings, villas, townships, vacation houses where a family or a person lives in. The length of their stay is based upon the rental or the lease agreement.

Commercial Real Estate Investments:
Commercial real estate investment mostly deals with investments in office buildings. You can earn fair amount of money by investing in commercial properties. You can lease them out to companies and small- business owners, who would pay rent to use this property.

Retail Real Estate Investments:
Retail real estate investments consists shopping malls and other retail storefronts. In addition to the base rent, the landlord also receives a percentage of sales generated by the tenant store. Returns from retails are more stable as compared to offices. Retail leases are generally longer than the Commercial ones. From an economic point of view when retail sales growth is high, retail tends to perform best.

Industrial Real Estate Investments:
It normally consists of storage units, car washes and other special purpose real estate that generates sales from the customer who temporarily use the facility. The industrial real estate has different types of revenue streams such as coin-operated vacuum cleaners at car wash centre to increase the return on investment for the proprietor. Some of the important factors to be considered while investing in industrial properties are functionality, location nearer to transport facilities, building configuration etc.

Real Estate Investments Trusts (REITs):
They are the business entities that invest in income- producing real estate. Shares in REITs, traded on the major stock exchanges are easy to buy and sell. REITs are the best option for the investors who want to invest in hassle-free real estate.

Mixed-Use Real Estate Investments:
These are the properties that combine any of the above properties i.e. commercial, retail, industrial into a single project. It is always possible to construct a building having all these three categories. This is a better option for investment because it measures the risk of loss and you can also benefit from the revenue and rent.

These are basic categories of the real estate investments. Beginner investors should look for the short term investments, within certain time span they will gain financial intelligence and assets to trade up more lucrative investments.

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Source: http://www.bharatestates.com/blog/index.php/types-of-real-estate-investments/

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