Category: Property

Types of Real Estate Properties to Invest in

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real estateFor novice entrepreneurs, getting into any business can be challenging. My friend too faced similar challenges when he was starting out Platinum Access Limousines. However, today, we are talking about real estate.  Getting into real estate and breaking in to become a successful entrepreneur may seem to be a challenging endeavor. Real estate investing is done in many ways; from buying fix and flip houses, buy and hold investing, buying rental properties and purchasing the commercial real estate. When it comes to real estate investing, you might be probably wondering which type of real estate investment to go for.

There are many types of investment options when it comes to getting into real estate investing. Almost anyone looking forward to getting started can imagine buying a house, but there are many options to consider. However, why should you invest in a home when you can invest in a duplex? What about going to warehouses and office buildings? The choices are endless.

Let us look at the types of real estate investments you can make;

Residential Real Estate

When we talk about the residential real estate, the most common thing that comes to our minds is single-family homes. A detached single family home is a fancy way to get your foot off the ground when it comes to real estate investing. Residential real estate properties are used as residents for individuals and families. Many investors prefer to invest in residential real estate over other investments due to a higher potential for profits and a well-established value. The residential real estate can be divided into either single-family properties or multi-family properties.

 

Commercial Real Estate

commercialCommercial real estate properties refer to all properties including plots of land that can be used for business and corporations. Investing in the commercial real estate is not for everyone, or faint-hearted. To get into commercial real estate investing, you need to have extensive real estate knowledge with deep analytical skills and decision making. The commercial real estate also requires a higher investment as compared to other types of properties. Buying commercial real estate is an investment option that most investors and companies have their eyes on, but based on the complexity of the procedures, most are pushed away.

Industrial Real Estate

The industrial real estate space is less crowded as compared to the other investment options. This type of investment ranges from warehouses, industries among others. Industrial real estate can be classified as an investment property that corporations can use for storage, distribution and or manufacturing. This investment type offers an appealing income for real estate investors if they choose to pursue it.

Land

In our list, the land is the last investment type. All types of real estate investment begin with land. You need to know that land appreciates just as fast as the property. This is the main reason investors are driven to invest in land. What determines the value of land is the location and it’s intended future use. If you know the zoning laws in your neighborhood and country, then investing in land can be a very lucrative business.

Categories: Property

Reasons why Renting a House May Be better than Owning

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rentWhen it comes to buying vs. renting, there is always a very hot debate on which among the two options make the most financial sense. Being a homeowner and also renting a premise for https://wpbtowingservice.com/ business, I can relate to this debate. Recent changes in tax laws have made owning a home not very advantageous due to a couple of reasons we are going to look at in this guide.

A common argument most people against renting have is that renting only makes you pay rent to the landlord instead of working to build equity in a home that is yours. However, there are many other advantageous reasons why renting may be more enticing and compelling. Let us look at the reasons why renting may be the best option for you.

No Maintenance Costs

Big advantage renters have over homeowners is that they do not have to suffer the responsibilities of maintenance costs. As a renter, the landlord must take care of all the repairs and maintenance. If an appliance stops working, it is not your responsibility to dig deep into your pockets to make it work. On the other hand, homeowners are responsible for all repairs, renovations, and maintenance of their premises.

Access to Amenities

Another key advantage to renting a house as compared to owning is having access to many amenities that would otherwise be enormously expensive if you were a property owner. While renting a home, you can have access to many luxuries such as an in-ground pool, fitness centers among others without having to pay for any additional charges as a tenant. If a homeowners want to match these amenities, they will be required to dig deep in their pockets.

No Big Down Payment

Another area renters have a significant advantage over the financial obligations associated with renting. While renting, you don’t need to have the financial muscles as compared to want to be required for homeowners. Rental property doesn’t attract a substantial down payment. Though the amount required varies from one apartment or property to the next, it doesn’t have to be that huge. In most places, landlords require a rental deposit that is equal to the amount of one month’s rent. On the other hand, a down payment for acquiring a house can be anywhere about 20 percent of the value of the property.

Decreasing Property Value

Property value will always go up and down depending with the market. While this fluctuation affects many homeowners big time, it affects renters to their advantage. The cost of a home determines the amount of property taxes you pay as well as the amount of your mortgage. When the housing market gets rocky, renters are not adversely affected by the fluctuations. Another advantage renters have the flexibility to downsize. In today’s economy, many people are struggling to have a decent living. There are a lot of uncertainties arising from the recession, retrenchment among others. When your income streams become tough, you can always take a rental property with lesser financial obligations.

Categories: Property