Different types of Real Estate Properties
Real estate properties can come in different forms and it is important that you understand these types before any investments are made because these factors can ultimately affect any potential gains or losses. As such, any plot of land and things that come along with it such as natural resources like water, trees or even minerals are subject to these factors and must be taken in good consideration.
However, on most occasions, consumers and buyers will mostly only look towards residential or industrial types of properties.
Today we’ll take on a closer look regarding these different types and explain them to you!
Commercial
Commercial-type properties mostly include those that primarily entail business activities and entertainment. Commercial properties are used to generate profit, capital gains or rental incomes and are mostly kept for long-term investments.
Commercial properties include office spaces, restaurants, shopping centers and malls, stores and markets, parking spaces, amusement centers such as bars, casinos, hotels and gaming centers.
A good commercial-type property is often located within areas with high activity and traffic since these properties rely heavily on crowds as well, due to the fact that the brands wants to establish their presence as well.
Residential
Residential properties are, just like what their name implies, mostly used for living and housing purposes. Establishments or buildings built on residentials areas include family homes, duplexes, cooperatives, apartments or even condominiums.
Sometimes, smaller commercial establishments or utility establishments such as coffee shops, laundry shops, and fastfood restaurants can be seen inside residential areas as well.
People are driven to purchase real property through the residential category, in that, many strive for homeownership.
Industrial
Storage spaces, warehouse, manufacturing factories, power plants, and shipping facilities are the most common industrial-type real estate properties that you could encounter and are often located far from residential and commercial areas due to the nature of business and procedures involved, as not to be of disruption and for the safety of the general public.
Agricultural
This type of properties includes large plots of land allocated for use with farming activities such as raising crops and livestock, fishing, or operations involved in the distribution and logistics of farming products. The locations of these properties are usually located far from residential and commercial spaces as well just like industrial-type real estate properties to avoid causing disturbances.
Raw land/plots
Plots of unused lands barely drop in price over the course of time and thus, only continue to appreciate in value. Many investors value this property for the potential of their undeveloped states or possible natural resources that can be further utilized that may come from these areas.
While this type of property is usually cheaper compared to developed properties especially in residential and commercial areas, making them a good long-term investment, they do not generate revenue on their own and relies on value appreciation.
Future investments and final thoughts
As a real estate investor, various options for your investment endeavors are available and its your responsibility to make sure to check which sectors to engage with your properties as well as plan your business projects with them accordingly. There is no “better” option among these types as they all come with their pros and cons – The success is dependent on what you do with them and is only limited by your creativity.
For more information and a free consultation, be sure to give us a call and reach out to us today! We’d be glad to assist you with your real estate projects!