Real estate is one of the oldest and popular assets for investors; it is relatively safe and has a good return if done right. If you want to invest in property, knowing the different types of properties will enable you to determine which one is ideal for your portfolio and investment philosophy.
An expert on investment property services, Americas Housing Alliance, LLC, mentions the following classes for your reference.
Office spaces are often the go-to investment of many real estate investors, because these are, on average, the most profitable and highest profile asset class. They are typically in suburban areas, near residential neighborhoods and are in downtown, making them appealing to those who want to rent. The return on investment for these vary, because the economic performance of an area has a profound effect on it.
One of the disadvantages of investing in offices is their high operational costs. Losing a tenant may lead you to bleed money; on the other hand, if the economy is doing well, the rewards are big because of the high demand for an office space.
Multi-family Residential Property
This asset class is one of the most stable, because regardless of the economy, people are always want a place to call home. Residential real estate occupancy is high in any market. Another factor to consider that argues in favor of this asset type’s stability is that when you lose a tenant, it doesn’t have the same impact on your profit compared to losing one for your office space.
Retail Real Estate
Retail real estate is another investment asset type for those who want to enter this industry. Retail properties often have an anchor, which is often a large, famous brand that is the main draw of the property. This could be Wal-Mart, Sears or groceries, McDonald’s or other types of companies. These anchors enhance the appeal of the real estate and make it more investment-worthy.
These are a handful of asset property types to look into when you want to make an investment. This have their pros and cons, determine which one fits your philosophy and portfolio.