The Best Types Of Real Estate Investments
As an investor, what do you consider the best types of real estate investments? The real estate market has been on the rise and investors are looking at different options that suit them. This post will be quite detailed, keep reading to know which real estate investment is best for you.
Types Of Real Estate Investments
Real estate investors should be familiar with these types of investments: commercial, residential, raw land, new construction, crowdfunding platforms, and REITs. These real estate investments have their advantages and disadvantages and investors should do their due diligence first.
1. Commercial real estate 2. Residential real estate 3. Raw land & new construction 4. Crowdfunding platforms 5. REITs
Commercial Real Estate:
Because of their potential high cash flow, commercial properties are considered one of the best real estate investments.
The best type is commercial properties to invest in including but not limited to hospitality, industrial, office spaces, etc.
Residential Real Estate:
Its ability to turn profits consistently with ease is one of the reasons residential real estate is one of the best investments.
We have various property types in residential real estate, from single-family homes, duplexes, vacation homes, etc. this is an ideal type of investment for investors.
Raw Land & New Construction:
An investor looking to diversify his portfolio should consider raw land & new construction investments
Raw land is any land that is vacant and available for purchase. In markets with high projected growth, this is most attractive.
Also read: 7 REASONS WHY YOU SHOULD INVEST IN ABUJA REAL ESTATE MARKET
New construction is not so different; in this case, the properties have already been built on the land. This form of investment is also popular in rapidly growing markets.
Some investors may be unfamiliar with raw land and new construction investing, but these investment types can represent attractive profits for investors.
This form of real estate investment offers investors access to several assets that offer high returns and are usually reserved for the affluent.
This may offer the ease of finding assets to investors, but this type of real estate investment also introduces a high amount of risk. Crowdfunding platforms are typically limited to accredited investors or those with a high net worth. Some sites offer access to non-accredited investors as well.
Real Estate Investment Trusts (REITs):
REITs are companies that own different commercial real estate types, such as hotels, shops, offices, restaurants, etc. An investor can invest in shares of these real estate companies on the stock exchange.
When you invest in a REIT, you invest in the properties these companies own without the added risk of owning the property yourself.
Investors can sell their shares of the company on the stock exchange when they need emergency funds.
What are the best types of real estate investments?
It depends on the goal of the investors, market area, and preferred investing strategy.
Confused about what real estate investment to do? Talk to our real estate investment advisors today on:
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