One of the reasons that investing can be so complicated is that every person is different, and is looking for different things. The beauty of investing in real estate is that every property is different. This means that no matter where you are in life, there is probably a real estate property somewhere that is just right for you. There are several different types of real estate property. Let’s talk about three common ones, and what they do best.
The purpose of residential property is to be lived in. This type of property would be a great investment for someone who is already looking for a place to live. Instead of throwing money at rent every month, knowing you’ll never see it again, why not put it toward actually owning the place? Alternatively, if you already have a place to live, you can still rent the property out to others. This type of real estate generally takes more effort to maintain, but can also be the most lucrative.
Commercial property is often much easier to own than residential, because once a business moves in, they’ll usually take care of the place themselves, and stay for years at a time. However, it also tends not to earn as much as a residential property. Commercial property can be pretty expensive as well. This type of property is for people who have a little more money, but a little less time, to invest.
This type of property is usually just an empty plot of land. You could always build something on it, although keep in mind that zoning laws will probably force you to build either commercial or residential property, rather than giving you the choice. If you choose not to build, then you are relatively restricted as to where you will be able to find income. Most of the money earned off of empty land will be through appreciation. Although this amount will likely be pretty low, empty land is also much cheaper than property with a structure.