What are the Types of Real Estate?
Real estate stands for a property which is in the form of land and buildings including the natural resources it offers. The real estate business is one of the oldest and most reliable forms of business. Real estate investments are safe and they guarantee an amazing return. Basically, There are four types of real estate.
- Land
- Residential
- Commercial
- Industrial
All of these types have different purposes, and requirements and returns also vary depending on the amount you have invested. A detailed explanation of all of these types of real estate is given below.
- Land
It is the most basic type of real estate investment. It is only a vacant piece of land with almost no development on it. It is one of the most commonly used forms of real estate investment and is very basic with good returns. Real estate investors purchase pieces of land and use them for their projects which also increases the price of the land. If a piece of land has any kind of worthy resource to offer with respect to the location then you can expect an amazing return.
- Residential
As the name shows, This type of real estate is made up of a large variety of projects from individual houses to large housing projects. It is the most common form of real estate. There are apartments, small houses, large villas, and townships of this type. The residential real estate market is one of the biggest markets in the world. The nature of the investment can be short-term as well as long term depending on your plan. You can flip and sell a house, build a new one and sell it, put it on rent, etc.
- Commercial
It is usually a long-term investment and offers good returns. This type of real estate consists of schools, hospitals, hotels, restaurants, shopping malls, business complexes, etc. Investors use the property for renting or leasing to other forms of business. These types of investments require good capital but the returns are also good. Crowdfunding is also quite common in this type of investment. This type is quite more complicated than land or residential type but has its own pros and cons.
- Industrial
This type of real estate consists of projects like factories, warehouses, power plants, production houses, etc. These are usually kept far away from residential areas because of the health risks related to the emissions from such industries. The capital required to invest is quite hard to estimate and totally depends on the scale and the type of the project. This type of investment has great returns but has many complications.
All of the above-mentioned types of real estate have their own requirements and the return also depends on many factors. The fact is that real estate investment has its own risks but is still one of the safest forms of investment. It is tangible and gives you a lot of options and you can expect great returns if the investment is done smartly.
