When I won a large sum of money when playing the lottery a few years ago, I decided to invest some of it in real estate. My dad used to always tell me that bricks and mortar where a great way of protecting a large sum of money. Unfortunately, my father wasn't a real estate expert so his advice did not go beyond this very simple statement. I didn't know what to do for the best so I contacted a real estate agency. They were really great and they helped me to plan my property investments wisely. I started this blog so I could offer advice to others.
Real estate refers to property such as buildings or land. It also includes the natural resources which can be found within the asset like water, crops and even minerals. Making real estate investments can be quite good as they usually provide a steady source of income. There is also the chance of asset appreciation which increases wealth making the industry unique. Before dashing into real estate, here are a couple of notes to jot down:
Categories of Real Estate – Real estate comes in different classes. Each has its very own set of rules and approaches which make it distinct from the others. The four categories of real estate include commercial real estate, residential real estate, land as well as industrial properties.
Commercial Real Estate – The commercial part of real estate encompasses properties owned for income generation. They include places such as hotels, offices, shopping centres, educational buildings and medical complexes. Commercial real estate also features apartment buildings as they also provide income to the owner.
Residential Real Estate – Residential real estate describes the places where people live. These include the townhouses, vacation homes, duplexes, quadplexes as well as the triple-deckers. The residential property may either be built or bought.
Land – Owning land also falls under the categories of real estate. This includes undeveloped vacant land, owning ranches and working farms. One of the advantages of owning a piece of land in a favourable environment is that it always appreciates in value. Even if it is left bare, you will still get a good price when selling.
Industrial Real Estate – Industrial real estate encompasses the property owned for production, research, storage as well as the distribution of goods. These include buildings such as warehouses and manufacturing facilities.
Characteristics of Real Estate – Possessing knowledge on all the essential features of real estate is necessary. This will help you avoid the various challenges in the sector and instead maximise on investments. Every property sold has certain important aspects. Some include financing, the physical structure of the property as well as the location. Knowing these three will determine whether the industry will be profitable to you or not. Many people prefer getting property in accessible locations, a place with good physical features as well as easy financing. You cannot just purchase land and expect to sell it as an investment without adequate research. Before buying property, always investigate about its heterogeneity.Share
30 September 2017