Due to its stable year-round earning potential, real estate remains one of the oldest and most popular ventures for investors; it appreciates in value over time, outperforming many other investment areas. In the US, the real estate industry is essential to the economy, accounting for about 13% of the GDP. Different types of property investment exist for you to reap the best of returns and here are six of them to consider.
- Commercial investments
Commercial property investments are a viable form of real estate investment that you should consider. Commercial real estate is property used for business-related purposes due to the demand for office buildings and space. The property units are usually leased out to small business owners and companies on a long-term basis, resulting in stable cash flow even in periods of market decline. Choose to invest in commercial property to get good returns on your investment. You will also benefit from attractive leasing rates, cash flow stability, capital appreciation potential, and a strong diversification option for your balanced investment portfolio.
- Residential investments
According to the World Property Journal, the US housing market’s value is a whopping $33.6 trillion. This proves that residential investments remain a profitable real estate venture that you can trust to reap high returns. Housing is a basic necessity, meaning the demand for places to live rarely dwindles. Properties that fall under residential investment include single-family homes, condominiums, town houses, multi-family homes, apartments, and duplexes. Many housing experts consider residential investments safe as a constant demand and proven track record of many investors amassing wealth through housing investments alone. Therefore, you should consider investing in various properties for rent or sale to exploit the high demand for housing.
- Industrial real estate
Industrial real estate comprises all buildings and lands that accommodate any production activity. These industrial properties are usually segregated at designated areas far from residential areas to prevent any interference or harm. The common types of industrial investment opportunities are land, warehouses, manufacturing and assembly spaces, all kinds of storage facilities, and industrial showrooms. Although this form of investment is riskier, the benefits of owning industrial property are still attractive. Consider investing in industrial buildings because they are low maintenance, generate higher rental income and yields than houses, have fixed annual price increases, and longer leases- which guarantee stable cash flow.
While vacant land is not the most attractive real estate investment, it is undoubtedly a wise investment opportunity to consider. Land is an essential factor in the real estate business, without which no property can materialize. Therefore, investing in land is an excellent financial choice to make good money. Land investments have many advantages that you should consider. These include: being a tangible asset, a less competitive investment option, requiring little to no maintenance, affordability, and value appreciation over time. You should conduct extensive market research before venturing into the land investment to equip you with knowledge regarding the potential areas worth your investment.
- Retail investment
Consumer spending constitutes a reported 70% of the US economy. Therefore, investing in retail property is an excellent way to invest. Retail properties are commercial by definition but differ from a commercial property due to size and prime location. Although e-commerce is now a force against retail stores, many online retailers still put their products on shelves and their services in physical spaces. Shopping malls, pharmacies, and local grocery stores are popular among the retail investors’ options that you should also consider joining. Consider investing in retail properties as they are tangible investments, require little maintenance, have longer leases, and are a good source of passive income.
- Mixed-use property investment
It is common to see buildings offering business spaces on the ground floor and luxury apartments above. Buildings like this are examples of mixed-use investments, which offer you a way to diversify your investments by fusing residential and commercial spaces into the same facilities. Modern mixed-use properties are live-work-play spaces that attract high-paying customers due to lifestyle trends like the growing preference for sustainability and convenience among millennials. Several studies reveal that millennials prefer to live in dense urban areas and commute by walking, reducing the need for cars and other public transit forms. Therefore, it would be prudent to invest in mixed-use properties to take advantage of this need and earn multiple income streams.
Although investments can be risky, you should still take advantage of opportunities to invest your money- especially in real estate. Explore these investment options to start earning extra cash safely and reliably today.