6 Common Types of Real Estate Investments

Many people now are engaging in real estate investments. Apart from the fact that it is a tangible asset, owning a real estate property expands your sources of income. Plus, its value increases over time.

Here are the six types of real estate investments that you can make:

Residential Real Estate Investments

Residential real estate properties involve houses, apartments, inns and motels, townhouses and vacation houses. A person or family can rent one of these to live or stay. The rate of the rental depends on the length of their stay and the rental agreements.

Commercial Real Estate Investments

Commercial real estate properties include office buildings and skyscrapers. As an investor, you would allow small and large businesses to rent or use your property as their office or outlet. The rate depends on the agreement while the payment usually takes place every month.

Industrial Real Estate Investments

Industrial real estate properties include warehouses and other industrial facilities which can be leased to businesses and companies. These properties can be used as distribution centers, storage units, and other special purposes. You can also integrate maintenance services to increase returns of investments.

Retail Real Estate Investments

The common form of retail real estate properties is a shopping mall. Malls lease spaces to businesses. This includes food shops, dress outlets, jewelry shop and much more. Apart from the base rent, the landlord also enjoys a share of the sales generated by the tenant store.

Mixed-Use Real Estate Investments

Mixed-use real estate properties combine any of the preceding categories. For example, a university established a building that has classrooms, at the same time commercial and retail units for lease. The first half of the building contains classrooms for students, while the other half, which faces the outside of the campus has bank outlets, food stores and other businesses leasing.

Real Estate Investment Trusts

Lastly, you can invest in Real Estate Investment Trusts or REITs. Basically, you are buying shares of an investor or corporation that owns real estate properties. You will receive a dividend out from the income. Of course, you also have to deal with taxes.

What among these real estate investments do you want to start?