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Published On: Thu, Aug 22nd, 2019

3 different types of residential property you should invest in

Property investment is one of the most lucrative forms of business, as people always need somewhere to live, work, and manufacture. Before diving straight into an investment and purchasing the first property you see, you should consider the different types of real-estate you can invest in. 

Take a look at these four different types of investments to establish which real-estate venture is best for you. 

photo/ mohamed Hassan

Residential

One of the most popular investments is residential real estate, which is basically any property used for housing purposes. This could include anything from single-family homes and apartments to purpose-built student accommodation (PBSA) and Houses in multiple occupations (HMOs). Multi-family homes, such as apartment buildings, are one of the most lucrative investments in real estate, despite the high upfront costs they can help you generate massive returns and achieve success in the property sector. 

If you’re looking to benefit from both short and long-term financial benefits, you should consider investing in a buy-to-let property, as the amount of people renting rather than buying has massively increased. Rented apartments are the property of choice at the moment, so to meet demand, more off-plan developments are being put on the market to entice investors. A great example of this is in Liverpool, where property investment experts RW Invest have several properties available in the city centre, where demand and rental yields are at an all-time high. By investing in this type of residential property, you can guarantee to enhance tenant interest, and of course, reap the financial perks. 

Commercial

Commercial property offers investors the opportunity to purchase office buildings and lease them out to various businesses. As long as you choose a good location, you can expect to benefit from massive profits. This is because companies tend to stay in office spaces for as long as they can, as moving will prevent business growth and will also waste precious production time, especially if all work is completed on computers. 

To achieve success in commercial property, you should push for multi-lease contracts with your tenants. This will enable them to stay loyal to you, as they must stick to the terms of the contract for however long they have agreed to stay. This will offer you more financial stability in the long run, however, you should be wary of inflation, because once you have agreed a set price, you cannot amend this even when the market heats up. 

Industrial

Another great investment venture in the business sphere is industrial property. This includes warehouses, distribution centres, car maintenance facilities, and any other temporary services used by companies. While the temporary basis may not seem stable, in actual fact, many businesses cannot actually afford their own distribution building. Therefore they will rely on industrial property owners who offer a leasing service. 

Industrial property investment is a great way to generate both short and long-term incomes via multiple income streams. For example, many industrial property investors rent out their space for a high amount, while also adding services such as coin-operated car washes which allow you as the investor to generate additional capital. 

Author: Olivia Hanlon

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