Figure-Out The Type Of Properties You Want To Invest In
Property investment is an art. You must learn it for a better quality of life after retirement. It is all about making the right money move at the right time.
Every time to master this art is the right time. Learning is the only way to do such an important art.
We want to help you learn about it as much as possible.
Let us begin your learning journey
Value learning about it because of the volatility factor associated with this domain of financial markets for income. It swings like a pendulum of a clock.
You could be a millionaire because you know the tricks of the trait. But otherwise can also happen. Lack of correct knowledge about important concepts is the reason for it.
Slow and steady wins the race. Haste makes waste. Always remember these two phrases. Waste no more time now! See below:
Types of Property For Investment
Get the hang of this concept first. Correct education about it will help you identify the right type of property you can nest your eggs in. listed below are some of its types for you:
- Residential Property
- Commercial Property
- Raw Land.
- Foreclosed Property
- Buy-To-Let Properties
REITs are Real Estate Investment Funds. These are companies that own commercial residential properties.
Nesting your financial eggs in their investment bucket is similar to buying shares of a company.
These real estate investment funds are required to return 90% of their taxable income to their shareholders. In a word, you become their shareholder.
Try it to enter real-estate and diversify their portfolio.
Go for it in order to purchase a property as a group. Everyone in the group will have to pool money with everyone.
This includes the cost of purchase, profit, cost of sale, documentation, and even loss. Another term used to refer to REITs is Real-Estate Crowdfunding.
Residential property for investment is usually for a family or a group of individuals. Most people in the world are familiar with this common type of estate and asset class.
Listed below are its types for your reference:
- Studio Apartment.
- Apartment (2,3 or 4 BHK).
- Duplexes, Villas, and Penthouses
- Row Houses.
- Gated Communities.
- Integrated Township.
Try to buy one of these if your budget allows it.
Commercial property for investment is another type of it. Such a property is not for residential purposes. Builders develop this kind of property for income generation. See below to know about its types:
Office Buildings – Skyscrapers built for commercial purposes fall in this category.
Retail Properties – shopping malls, shacks, and a clutch of shops fall in this category.
Industrial spaces – Factories, units to assemble parts of machinery, warehouses, or even a research and development facility fall in this category.
Hospitality Properties – Do you want to invest in hospitality properties? Opt for hotels, motels, and resorts then.
Specialty Properties: Even properties dedicated to entertainment can also be great commercial options for investing in commercial properties. Theatres, amusement parks, skating rinks, and bowling alleys fall into this category.
A piece of land used either for sale or for building houses, shops, malls, units, facilities, warehouses, factories, and offices.
Foreclosed Property refers to a property that your bank or lending institution legally seized for auction from you. They usually do so because of the following reasons:
- First, you have gone bankrupt because of some reason.
- Second, your bank or lender wants to recover money lent to you.
- Third, you have failed to repay your loan.
Investing in such a property could be a great option. But do your homework to make sure you have made the right choice. What is more important is the huge percentage of discounts banks or lenders can give you.
These are properties purchased for income through rent. Most investors in the world buy the following types of properties and let others use them for residence or work:
- Condos, apartments, and villas.
- Offices, shops, and malls.
- Factories, and warehouses.
The list does not end here only.
Their purpose of doing so is regular passive or direct income in the form of rent every month.
You are now ready to begin your property investment journey the right way. Give us some credit for it through your invaluable words of encouragement below in the comment box.
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Investment properties are REITs, raw land, real estate crowdfunding, foreclosed, buy-to-let, and residential & commercial properties are the types of it.
Equity REITs, Mortgage REITs, and Hybrid REITs invest in property. Equity REITs earn from rent collection whereas mREITs (Mortgage REITs) earn from the sale of properties they hold for long-term. Hybrid REITs earn from rent collection as well as the sale of properties. REITs are safe for investment as they are required to treat investors like you as their shareholders. They have to return at least 90% of their taxable income for this reason.
Commercial properties for investment are Industrial spaces, office buildings, and retail, hospitality & specialty properties. These are properties you buy, sell, or rent for income. Such a property earns you money either through sale or through monthly rent.
Yes! Raw land is a good investment property if you keep it for a long time. You can then sell it for an increased price. It proves to be profitable even if you cut a plot on it or build something like a villa, factory, or warehouse on it to earn money. Such a property earns you income in the form of monthly rent or a lump sum amount through its sale.
Yes! Investment in a foreclosed property is a good option. A foreclosed property is usually auctioned at a significantly lower price than its actual market worth. The down payment is also not more than 5% to 10% of their selling price.
Buy-To-Let Properties for investment are Condos, apartments, villas, offices, shops, malls, factories, and warehouses. It is because you buy these commercial and residential buildings to earn money as monthly rent.
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