Financial Resource

Article by Danica Reynes

The six types of real estate investments are residential, commercial, retail, industrial, trusts, and mixed-use.

Real estate investing, which includes buying, selling, owning, renting and managing property, has become an extremely lucrative investment opportunity. Real estate investing has many advantages that make it an attractive option to a wide range of buyers. If, for example, you can find a way to sell the property at a better price, then investing in real property in Tangier just might be where it’s at for you. Deciding on which real estate investment option to pursue is made easier by knowing the numerous different types of investments. Here are a few of them:

Residential real estate investments

Houses, apartment complexes, holiday homes and townhouses are a few of the instances of this kind of investment opportunity. If you own a number of properties, you can rent them out to individuals or families. Rent and lease contracts are made for a time period of stay.

Commercial real estate investments

This kind of property investment includes offices and places of employment. Typically, this involves investing in the construction of a commercial building that will house several office spaces which can be leased out to companies and organizations and who rent to use of the property.

Retail real estate investments

Investments in retail real estate includes individual shops, malls and other retail outlets. Retailers and other businesses rent space from the landlord. Besides income from fixed rent, a landlord can sometimes get a certain percentage of the income that might be generated by the tenant from the use of the rented space.

Industrial real estate investments

The term “industrial real estate investment” refers to properties such as garages, factories, warehouses, storage units and even car washes. Generally there are extra fees to be able to access the property’s facilities with this kind of investment.

Real estate investment trusts

Real estate investment trust (REIT), consist of marketing securities such as stocks in big exchanges and eventually investing in real estate. As a corporation investing in the category of real estate, you can erase some or all of your income tax liabilities. The 90% portion of the income generated should be distributed to its investing partners/members as a return to them. In such instances, you may find that the distributed income may be taxable.

Mixed-use real estate investments

Judging by its name, this kind of real estate consist of mixing several kind of real estate investments for one investment system. Establishing a small town equipped with a variety of properties is a good choice for an investor with large cash savings. In turn, you may find renters to occupy these properties on a lease basis. This self-same town could include everything from apartments and warehouses to retail shops and office spaces. Admittedly, this type of real estate investment can be rather expensive, but it’s very popular among those with a great deal of money to play with. Additionally, the diversified nature of the mixed-use real estate investment helps control and reduce risks.

Investors get various opportunities with different needs and purposes in different types of real estate investments. Investing in the property that is best for you is what’s really important.

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