Investing in real estate comes with a number of advantages: passive income, a diversified portfolio, and tax deductions. But before you put your money into the right one, first examine all your options and see what kind of real estate property works best.
There are four main types of investment properties: residential real estate, commercial real estate, industrial real estate, and land. Read on to know more about each investment property and if it’s the choice for you.
Residential real estate
If you want a large selection of properties to choose from, then investing in residential real estate could be the right choice for you. They are the best option for those starting out in the real estate market and are the most common among the investment property types. These consist of single-family homes, condominiums, apartments, townhouses, and multi-family homes.
Residential real estate offers plenty of advantages, including a steady flow of rental income, financial leverage, and certain tax benefits that are unique to dwelling units.
Commercial real estate
Commercial real estate, meanwhile, is used solely for business purposes. These could be used as office spaces, restaurants or retail shops. This kind of property is typically rented out to tenants who run businesses. Moreover, it provides the investor with a stable income.
However, purchasing a commercial real estate property can be tricky due to the larger down payment and higher credit required. Investors who plan to invest in commercial real estate property must have ample real estate knowledge and experience to determine if the said property will provide a respectable profit margin.
Industrial real estate
Industrial real estate involves large and high-priced properties used for storing, manufacturing, and distributing products of a company. While this type of real estate is not as popular as residential or commercial properties, they often generate higher returns. Turnover rates are low, as well.
Just like any other real estate investment, industrial real estate comes with certain risks. Industrial real estate investors are dependent on the supply and demand for industrial properties in the local market. Investors must also have concrete ideas on the purpose of the property to ensure steady cash flow and high market value.
Buying land may be a risky and complicated investment but it certainly has huge rewards. Rural land, in particular, offers plenty of opportunities to rent, sell or develop the land. Contrary to popular belief, rural land can be versatile and profitable, as long as the property is buildable and in a good location.
When investing in land, you also need to consider your chosen area’s zoning laws. These laws dictate how the land should be used, how big of a structure or development you can build, and the areas that you cannot build on. Your local planning and zoning department can tell you everything you need to know.
Ready to invest in Clarke, Oconee, or Jackson County real estate? Get in touch with Lauderdale Morrow Realty Group today! We are accredited land consultant and residential specialists and one of the top Athens, GA real estate producers. For inquiries, call us at 706.534.2289 or email email@example.com.