3 Types of Real Estate That Can Make a Great Investment
For first-time real estate investors, it can be tough to know where to begin. There are so many types of properties, each with its own considerations and potentials, and learning the ins and outs of investing can be intimidating.
Fortunately, it is possible to develop a comprehensive knowledge of property investing, and find success in the industry. With that in mind, here are three common types of investments, and some details to consider in each.
Residential properties are at the top of many investors’ lists when it comes to thinking about real estate. Indeed, for many families, a home is the most significant asset to their name, both a great investment and a reliable place to live.
For individuals geared exclusively towards investment, residential property can be a great place to start. A purchased home can be rented, generating reliable income over an extended period of time. Likewise, a house in poor repair can be fixed up and “flipped,” often fairly quickly, for a significant profit.
Residential properties also tend to be among the most affordable properties, so can be a good place to start for first-time investors.
Commercial property runs the gamut from multifamily buildings, to retail space, to industrial and warehouse space, and more. While commercial property tends to be pursued by more experienced investors, and often costs more, it can still be worth thinking about no matter where you are in your investment career.
For many business owners, purchasing the property in which you’re located is a valuable way to gain added control over your professional space, and potentially develop added income streams through commercial leases from neighborhood businesses.
Because of its cost and value, many commercial properties can also serve as extremely useful assets to be leveraged into future investments.
Undeveloped properties will vary widely from place to place, ranging from vacant urban lots to wooded rural properties. All may convey unique advantages, and sometimes you can find great deals on undeveloped real estate.
An undeveloped urban property may have high speculative value, particularly as prices go up in cities. Likewise, undeveloped rural properties may convey unique timber or mineral values, as well as their own development potentials.
In short, there are many places to enter the real estate investment business. Consider the options above and whether one of these paths may be a good method for you to start your property investment career.