Different Types of Real Estate Investment Properties
Monday Mar 07th, 2022
Real estate investment is a vast field of interest with a long list of topics that you need to be familiar with. A good real estate agent with my kind of experience would tell you that having immaculate market knowledge is what makes your investment superior to others.
While there are a lot of other things that a real estate investment can teach you, one of the most important lessons is to know the types of real estate investment in the GTA in Canada. Before you devise your real estate plan, let’s explore the kind of properties you can choose from especially focusing on the Greater Toronto Area.
Investing in real estate can increase your wealth and produce returns in a variety of ways. Each kind of property produces a different kind of return depending on its strong suits and ability to attract investors. Here are some of the main properties you should know about:
Residential Real Estate Investing
This is one of the most important types of property that you can encounter since people never run out of buying houses. Residential buildings include single-family homes, multi-family homes, condos, studio apartments, townhouses, mobile homes, and so on. Each of them has a different way through which they can create passive income.
Investing in single-family units can be beneficial if you hold them until their value increases before selling them to the best bid. Another way you could use these houses is by renting them out, this way you can also pay off your mortgages.
Multi-family units are a great investment if you want to receive income in multiple ways. You can get your incomes from different people, renting the units to one family each.
Condos, townhouses, and studio apartments are a great investment if you are not necessarily looking for a steady income.
Commercial Real Estate Investing
Commercial real estate investments can be used for office work, retail uses, and professional interactions. You can always buy these properties and rent them out to entrepreneurs who are looking for a spacious place to store their products, conduct their meetings, and run their companies.
These real estate properties can be anything ranging from retail stores to restaurants to office spaces. The downside of investing in this sector is that it is a whole lot more complicated than residential investments. You would need a lease agreement and a definite investor so that you can determine if the space is ideal for the kind of business they have.
Industrial Real Estate Investing
Supply and chain departments require a great amount of space for their operations. Investing in an industrial property would involve the warehousing, storage, and supplication of the products belonging to a certain company. The troubles that come with this investment can be stressful because they are expensive, humongous, and highly variable. However, these issues seem to be worth it if you observe the returns they generate and the low levels of turnover rates.
Investing in Land
While this one is a risky investment, you can generate a good amount of passive income if you buy land which people need to build on. The issues aren’t few and include environmental obstacles, zoning issues, utility needs, and so on. The process is long and tedious but if successful, it could generate a handsome amount of return.
There’s always a risk-reward calculation that has to be done as part of having a real estate plan that will help you strategize to maximize your wealth. My expertise allows me to know what works for whom, and the best way to move forward. If you’re looking to invest in real estate but you’re not sure what option is the right decision for you, contact me today and let’s have a consultation.