Real estate investment includes much more than simply buying houses or apartments for rental benefits. Residential properties hold a strong position in the domain of real estate investments but there are others in the queue. Various types of properties, in which you can invest your hard earned money, are mentioned below.
The best and foremost option in real estate investments is buying an office or a warehouse complex. The tenants, who opt to take such property on lease, would pay you triple net leases. Besides this, you do not have to worry about the maintenance cost or any accidental damage to the property. The expenses for both are to be paid by the tenant. Plus, they pay you for insurance of the space which they have taken on lease, along with the taxes involved as per the law. Triple net leases are a great option, as the lease period is between 5 to 20 years and after regular interval the rent is usually increased.
Retails centers or shopping malls, as these are widely known, are another popular form of investment in the sector of real estate. The reason behind their popularity is triple net leases, as these can be rented out for long periods. If you invest in this kind of property, then the returns are sure to multiply and would never go down, as the rental amount increases with time. In a nutshell, if you are an experienced real estate investor and want to play a big game, then shopping mall is your cup of tea. It is a big no for beginners, as the investment amount is enormous and they might have to face huge losses if they do not make the investment with care.
Apartment or residential projects are a good option for investors with a less budget. Such an investment includes at least five and above housing units and can cover massive and luxurious multi story residential buildings as well. The best part about investing in such projects is that banks and other organizations love to lend you their money on attractive rates of interest. Besides, such properties are easy to find and once everything is in place, they promise amazing returns. These returns can be more depending upon the location of the apartments, such as nearby market area, etc. The higher is the development in a particular area more is the price of the property.
For experienced people, hotels and resorts can be perfect areas to invest, as they can use their tons of experience and intelligence to make the deal a profitable one. Another way to invest in hotels and resorts is to buy the land and then construct a hotel or resort. They can also give it on lease to a hotel chain. The reason behind this is that managing a hotel is an entirely different process than dealing in the real estate business. It is better to hand it over to some experts of the hotel management sector and reap the benefits of returns in the form of lease.
Exploring Real Estate Investment Options