4 Different Types of Real Estate
Real estate is undoubtedly among the most diverse and oldest sectors around the world. Real estate comprises two types of components which are, land and improvements. As an asset class, it is different from others. Many major corporations and investors have real estate in their portfolios.
There are many ways to invest in this sector, and sometimes you might have some difficulty knowing where to begin, even as a very experienced investor. To have an easier time starting in this business, you need to understand the different real estate types and their characteristics. Here are four of them.
1.Residential
The first type of real estate is residential property, which includes homes. Under this category, the types of property are single-family and multi-family houses in rural, urban, and suburban areas. Most people tend to purchase residential property because they strive to own homes. There are different kinds of residential property, the first being single-family homes. They can be attached or detached houses such as townhouses. Single-family houses are more common as they are what most people prefer. Another type of residential property is an apartment building, also known as multi-family units.
These are set up in many crowded areas allowing people to obtain adequate housing. You will typically find them in urban and suburban locations. Sometimes, apartment buildings also have clubhouses, fitness clubs, swimming pools, among others. Other types of residential property are cooperative homes and condominiums. Before investing in this type of residential asset, consider hiring top rated estate planning lawyers.
2.Agricultural
Agricultural land is a common type of real estate property. Agriculture refers to the use of land to raise animals, plant orchards and trees, and provide crops. As an investor, you can lease, buy, or sell an agricultural property. You might also want to consider investing in actual agriculture businesses. A good example is purchasing a farm that provides barley while still having the original farmer manage it. There are various types of agricultural land, the first being farms.
A farm is primarily meant for producing food, plants and raising livestock. Another type of agricultural investment is ranches. This is similar to a farm, but the primary purpose is to raise grazing livestock such as sheep and cattle. You can also get timberland, with a forest suitable for timber. Lastly, there is an orchard which is a property with planted trees like grapes and apples.
- Commercial
The third type of real estate that you can invest in is commercial property. This category includes property with business activity, for instance, malls, entertainment facilities, and offices. Hotels and parking facilities also fall under this category. The first kind of commercial real estate is business property. That may include any real estate owned by a particular business entity.
It can also mean the dwellings and activities of a running business. For example, a furniture store with furniture hardware is business property. Another one is office space which has an area where business activities take place. You then have shopping centers which are commercial properties mainly dealing with retail.
4.Industrial property
Another type of real estate is industrial property. If you want to get this type of real estate, you can purchase power plants, factories, and warehouses, among others. Many people don’t consider this type of real estate, but you can tap into the market and profit.
Real estate investments are an excellent way to grow your wealth and cushion yourself when you fall into more challenging times. Before you invest, do adequate research. Moreover, you can involve the services of an expert realtor so that they can guide you and teach you the ropes for the best results.
