Make Good returns with Real Estate Investments

Real Estate is one of the most lucrative investment options available on the market today. I personally believe in this investment option as I am involved in commercial real estate investment. Real estate offers the highest return on investment over any other type of investment available. This investment option allows the largest accumulation of wealth during a relatively short period of time.

For example, if you invest in real estate, you automatically receive a number of tax reducing privileges that do not happen for other types of investment. Since taxes amount for at least 30% of your annual expenditures, saving on taxes can make your investment much more solid and lucrative.

Before you can think about venturing into this type of investment, you need to learn as much as you can before you invest a single cent. Take classes and seminars on investment analysis, real-estate finance and commercial lease analysis.

The second step is to look for the right properties. Do your research to find what comparable properties are sold and rented for in the location you are considering. The right property attracts the right tenants or buyers, so spend time and effort up front on finding desirable properties. A good rule of thumb is to look for the worst house on the best block, since you can make many changes to a property but you can never change its location.

Real estate investments are categorized into two main categories namely; residential and commercial real estate. Depending on your capital and personal preference, you can choose to invest in either residential or commercial real estate. I have listed different types of real estate investment options below by category:

Residential/housing

Family Homes - This is the simplest and most common type of real estate investment on the market. Families need houses to live in. The demand is very high, and also this the easiest investment to start with as little knowledge is required to venture into this category.

Condos/Estates - These are multi-family homes and the second common type of real estate investment. It is important to be careful with your assessments on the property and your numbers when calculating your likely return on investment.

Commercial

Commercial real estate is a bit sophisticated type of investment; this requires some knowledge about this market. However, you can still start with this type of investment with the help or guidance of a seasoned real estate investment consultant. Commercial real estate offers the highest return on investment if the numbers are played intelligently.

Investment in commercial real estate covers retail properties, office buildings, shopping centers, hotels, warehouses, manufacturing facilities, apartment complexes – and vacant land that has the potential for development for these types of buildings. In short, almost any kind of real estate except single-family home and single-family lots can be regarded as commercial real estate.

I will cover benefits of investing in either residential or commercial real estate in my next post.

Wishing you all the best in your quest to financial freedom.