When you become more interested in investing in property, you’ll have to know that there are different characteristics of properties’ performance. Properties such as shopping malls, residential homes, office towers, warehouses, or combination of them, have different performance. You cannot just assume that a certain property will be so good in a market. You also cannot assume that a certain property will be good continuously just because it had a good performance before.
Properties of income-producing are industrial, leased residential, offices, retails, hotels, mini-storage, housing for the senior citizen, and parking lots. The investment of non-income are houses, empty buildings for commercial, and vacation properties. So, when you invest in a non-income-producing one, you won’t get any rent and all you got is only capital appreciation. If you invest in the non-income-producing property, you have to use your personal income to pay the payment of a mortgage.
Broad types of Real Estate that people can invest in
• Industrial Property. This kind of property requires lower operating costs, less average investments, and less management. The industrial building can be used for manufacturing, development, research, warehousing, distribution, etc. Some have offices that are fully built and partial.
• Office Property. This is the highest and largest profile property for it is usually located in the center of downtown and office parks in a suburb area. Office spaces are on demand since there are many offices need one for their employees to work. The return for having this kind of property is high but its operating cost is also high.
• Retail Property. This kind of property is various and many of them have an anchor. So a retail property can be food-anchored, grocery-anchored, etc. People wanting to have this kind of investment should pay attention to the visibility, location, population growth, population density, and levels of relative income. When the growth of economies including the growth of retail sales is fast and vast, the retail property no doubt will perform well.
• Residential Property of Multifamily. This is a kind of property that gives a stable return, like retail property. People always need a place to live in even in a recession. So, you can conclude that the return is good. Owner of this property can pass operating expenses to his/her tenants.
So, what do you think? Which one would you like to invest in? Hopefully, the article sharing about investing in property can be beneficial to you.