What is a real estate investment? It is nothing but buying any property or real estate (office, commercial plot, house, agricultural land, etc.) like an investment for income instead of using it for your personal needs.
Real estate investment is a booming and lucrative industry. It is attracting people all around the globe as more and more people are becoming property investors. The job market in the sector is set to expand in the coming years. Real estate investment is a secure investment, and it is an opportune time for anyone interested in property dealing with entering this industry. It is advisable to connect with Houston real estate investments as they will keep you updated.
Different types of investments in real estate
There are various kinds of properties available in the market, and you need to decide on the type of property you would want to invest in. These different investments come with their own sets of pros and cons. Following are the common types of real estate investments:
Residential real estate –
Is one of the most common types of property investors deal with. It consists of residential places or homes and this real estate includes both new properties (recent constructions) and the properties that are out for reselling. These properties include single flats, penthouses, bungalows, etc.
Commercial real estate –
is another prime type of property investment, and it consists of business properties, aka those for nonresidential purposes. This type of real estate includes retail shops, shopping malls, offices, etc. Industrial real estate is the other popular type, under which investors deal in large properties, generally used for factories, warehousing, manufacturing units, etc.
Retail real estate involves properties situated in prime areas dealt in for transactions. Investors use these units for restaurants, showrooms, retail stores, etc. Rental properties are prevalent for the new real estate investors, where they can buy a property and rent it out to create a cash flow.
Another type is flipping houses, where investors buy properties, renovate them, and sell them off with a profit margin. It is a little expensive investment. Another type of real estate includes vacant land, which investors use for agricultural practices. The Mixed-use of real estate is another kind which consists of various properties. It deals with one high-end project so that there is a minimum risk of failure.
Should you consider real estate investment a full-time or a part-time career option?
It is subjective and depends upon how much time you can afford to give in this venture. If you don’t have much time, you should consider being a part-time investor, connecting with Real Estate Investment Trust (REIT), and generating a passive income source. In this case, they will not have to spend time managing the funds or attending prospective buyers, etc.
If you have enough time and are passionate about properties, you should consider becoming a full-time investor and begin with rental spaces as it generates steady passive income. Although it requires lots of time to allocate investments properly, tracking down renters, fetch rent, etc.