Regardless you haven’t bought a stock or bond during your entire life yet there are chances you would invest in real estate. As at the end what matters is having own house than rented place. Be it a property agent or common man all at some point in life invest into property.
Gone are the days where buying space to rent was only way to real estate investment. There are five different ways of real-estate investments which you must be aware as well can invest in. Most vital thing never buy a real estate investment on own as there are good chances to be duped / sued.
There are real estate agents those who have license and use this special LLC (Limited Liability Company) framework when dealing with real estate investments. This is called asset separation where even if one of the properties you owe is in trouble then you can put only that property into bankruptcy and the rest properties are safe.
• Real-estate Investment in Residential Property: This includes flats, apartments, holiday houses, townhouse where rent is paid for staying by families. Duration of stay depends on the rental agreement.
• Real-estate Investment in Commercial Property: This focuses on building offices and work place that one can build in and give to several companies or small business owners on lease.
• Real-estate Investment in Industrial Sector: This refers to leasing out storage places or sheds to the user on temporary basis at a minimal fee. Usually, it aims at lending facilities along with place for generating extra revenue. Example: An automated car wash machine operated with coins offered at car shed.
• Real-estate Investment in Retail Sector: Shops, showrooms, malls all fall under retail investments where the landlord gets a % of amount from the tenant it’s usually on the sales made by the occupant. In – addition, the tenant pays rent for using and maintaining the property.
• REITS (Real Estate Investment Trusts): Here you trade in real estate stocks and have a profile showcasing your real-estate mortgages. You can also be the financer like build a restaurant give it on lease and earn. Here you get two key benefits 1) The rent paid by tenant 2) the property and its appreciation.
Since you are now aware about several real estate investments it’s time to get started and make investments into property.
Courtesy :Real Estate News and Trends in India
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