Options  Available in Real Estate Investment Choices

Options  Available in Real Estate Investment Choices

Land

Land is nothing more than basic earth. Land on its own can be improved to add value, and it can be leased or rented to create cash flow. Land can also be subdivided and sold for profit. Some investors choose to buy raw land with hopes (or plans) that someday the land will become much more  valuable due to external developments like the construction of a freeway or from a development being built nearby.

Single-Family Homes or Simplex Houses

Perhaps the most common investment for most first time investors is the single family home. Single family homes are relatively easy to rent, easy to sell, and easy to finance.

Duplex / Triplex / Villas

Duplex house is a residential dwelling with two living units attached to each other. The duplex house plan is such that the attachment of two units can be either next to each other, like in condominiums and townhouses, or it can be one above the other way.

Flats or Apartments

A flat is a set of rooms – 1 BHK, 2 BHK or more as a part of a bigger building also known as society. It is thus a part of a bigger part of residences. An Apartment is a customized residence designed in a better locale with several households

REITs

REIT stands for a Real Estate Investment Trust. In the most simplistic definition, a REIT is to a real estate property as a mutual fund is to a stock. A large number of individuals pool their funds together, forming a REIT, and allow the REIT to purchase large real estate investments, such as shopping malls, large apartment complexes, skyscrapers, or bulk amounts of single family homes. The REIT then distributes profits to individual investors. This is one of the most hands-off approach to investing in Real Estate, but do not expect the returns found in hands-on investing. You can buy shares in a REIT via your stock account, and they often have a relatively high dividend payment.

Commercials

Commercial investments can vary dramatically in size, style, and purpose, but ultimately involve a property that is leased to a business. Some commercial investors rent buildings to small local businesses, while others rent large spaces to supermarkets or big box mega stores. While commercial properties often provide good cash flow and consistent payments, they also may carry with them much longer holding periods during times of vacancies; commercial property can often sit empty for many months or years. Unless you are starting from a very solid financial position, investing in commercial real estate is not recommended for beginners.