According to experts, real estate is still the best investment you can make. However, there are several types of property you can invest in, not just one!
Are you ready to expand your portfolio? Keep reading to learn more about the top 4 types of property you can invest in!
Residential properties are an excellent choice for first-time investors. There are several different ways that you can start making money even off of your own home. For example, you can sever a part of your home and build an ensuite or rent it out as an Airbnb.
If you wish to invest your money in another property, there are several options. The best place to start investing is to buy a condo to rent out or perhaps a small cottage in the country as a vacation home.
Eventually, as your passive income grows, you could buy a duplex to generate even more income.
Commercial property is usually a bit more expensive than residential. However, it is hard to go wrong in commercial real estate investment.
Of course, you will need to do your research and ensure that the right property has the right location. For example, you need to make sure that a building fit for hospitality is located on a busy road.
Additionally, commercial property usually generates a higher income and has longer leases. However, the initial investment can be quite significant.
3. Raw Land
Raw land is a great investment for fast-growing places. Northern Virginia just happens to be such a place. Virginia, as a state, grew 8% in the last decade, while most of the growth occurred in Northern Virginia.
Raw land is a sound investment as the opportunities are endless, and there is little risk. However, make sure to do plenty of research before you buy in order to predict which direction the market will go.
There are several things you can do with undeveloped land. You can hold onto it and let the value increase on its own, or you can enter a new and exciting venture and start developing yourself. As we said, the possibilities are endless.
Third-party investments are a bit more complicated. However, they are great investments without the risk of having the property in your name.
There are several types of third-party investments—crowdfunding and REITs as the most popular.
Third-party investments involve several different investors. With crowdfunding, a number of investors pitch in to fund the real estate opportunity. As a return, the investor receives a percentage of the passive income.
REITs, or real estate investment trusts, invest in certain types of property. These real estate properties are usually large development opportunities such as hotels, large apartment buildings, warehouses, and the list goes on. Much like with crowdfunding, you'll receive a percentage of the income, depending on how much money you initially invested.
What Types of Property Will You Invest In?
As you can see, there are many types of property that you can invest in. Perhaps you are just starting out, or you are looking to expand your horizon; if you invest correctly, it will pay off in the end.
Are you looking for help in property management? Look no further than here! We offer a free rental analysis to help you determine how your investment can start making money!