Types of Real Estate Properties

Real estate is one of the proven wealth generation measures around the world. The great thing about putting money on property is not to wait for a good time. There is always the option to rent out the land when not in use. It helps in reaping lots of profits, and outsourcing real estate bookkeeping saves a lot of money. Many types of real estate properties exist.

Further, each investment has its own benefits and pitfalls. There is no such safe, beneficial investment. It all depends on the market situation.

Types of real estate properties

  1. Industrial real estate

The buildings and factories are known as industrial properties located in faraway places. Likewise, investing in these properties through outsourcing real estate accounting is quite tricky. Although the property might be recently converted from agricultural land to industrial establishment, the price will be high. Renting an industrial unit is difficult as the needs of the tenant keep on changing frequently.

  1. Residential real estate

All the villas, townships, tiny houses, multifamily houses, apartments, etc., fall under this category. Each investment is different from its separate perspectives. Besides, the prices of the well-built villas will increase over time. It will happen because of the rising land value and the longevity of the buildings. The apartment prices will not see appreciation after just 15 years of use. So, these apartments have to be sold in the next five to seven years.

  1. Commercial real estate

All the schools, hospitals, shopping centres, etc., fall under commercial properties. Its best for outsourcing bookkeeping services as there are better chances of profit generations. Secondly, if you are a new person in the sector, the investment might seem complicated. Seek the guidance of the actual investors in this case.

Another concern here is the down payment part, as most Indian banks provide only 50 to 70% of the loan cost. Investing in a commercial estate requires a mortgage for it to be completed.

  1. Land investment

This is the least expensive real estate property. After buying a piece of land, there is nothing to worry about theft, maintenance, damage, etc. One also generates passive income in the land through some out-of-the-box ideas.

It’s still good to invest in the land since the land will always appreciate in the future. The loans are, however, charged more than the home loans.

Short and long-term rented properties.

The long-term properties come with steady income providing monthly mortgage payments. Likewise, the long-term rental properties are the traditional rentals that are rented for more than six months. Long-term rental properties require property management accounting as the income is quite good in this case. Short-term rentals are for short periods of less than six months.

The short-term ones are always in good locations providing higher profits in a short duration.

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