When thinking about investments, a great choice is something that is limited, but in demand, such as real estate. The world is only so large and there are a limited amount of properties that can be claimed. An empty lot with nothing built on it may seem worthless, but some day there may be someone who wants to purchase this land and erect a business or a home there.
Existing homes and buildings are also excellent purchases. A little renovation here and there or even simply time alone can increase their value. Here are the three types of real estate purchases you can make.
Vacant land is a popular real estate investment, possibilities can be endless for building on empty lots. No need to demolish any existing structures, saving the buyer money on land that is already prepared for building. Common terms used for describing this type of land are lots, parcels and of course land. Typically a survey has been performed to determine the boundaries of the vacant land, which is then used to determine it’s worth.
The next type of property common in real estate is residential properties. This type of real estate is easily described as houses or structures people live in. Residential properties are the most common type of real estate most people hear about due to the advertising that takes place when a residential property is up for sale.
Realtors are usually used when selling this type of property as they specialize in selling homes and have connections to help sell the property quicker. Housing has seen many ups and downs, often having foreclosure rates higher than ever. For those interested in making a profit, purchasing real estate and investing some money on renovations can be a great way to make a quick profit.
Commercial property or some times referred to as income property is also a popular form of real estate and often results in high dollar amount sales, usually due to the size of the real estate property being sold. This type of real estate often includes office buildings, medical centers, industrial property, hotels, malls, retail properties and so on. These properties are specifically meant for generating income as seen by the types of buildings and businesses that fall into this category.