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Are you looking to invest in the property market?
Notoriously, property values have been chaotic during the pandemic. First they rose in value and now that interest rates are up, prices are stabilizing and could even come back down.
Given that you have choices to make, what are the best properties to invest in? Keep reading to find out.
1. Residential Real Estate
Residential real estate are properties that people live in as their personal residence. When buying these properties, target ones located in sought-after neighborhoods with strong market growth potential, good schools, and nearby amenities will result in the best returns. Additionally, investing in residential properties with low maintenance costs and high usage potential, such as rental properties and multi-family units, offers more attractive returns.
Residential real estate located in up-and-coming neighborhoods with a good mix of housing types, diverse commercial offerings, and access to transportation has the potential for strong future returns for investors.
In general, the best properties to invest in are those that have long term potential to gain in value, offer minimal maintenance costs, and are near employment and entertainment centers.
2. Commercial Real Estate
Commercial real estate is real estate used for business or industrial purposes. It can include office space, retail space, industrial space, and self storage, for example.
Generally, it’s best to invest in commercial real estate located in growing areas and are well-maintained. If a property can generate a steady income through renting, it’s a great choice.
If that income is able to cover all expenses and a bit more, then it’s even better. Investing in retail or strip malls that have multiple tenants can also be beneficial.
3. Raw Land Investing
Raw land is exactly what is sounds like, it is undeveloped land that lacks buildings and roads. Raw land investing can be a great way to achieve a lucrative return on investment, assuming that you’re willing to be patient.
When investing in raw land, look for properties that are well-located and near areas that are growing or have major development plans. It is can also be effective to acquire land that has natural resources, such as timber or minerals, or is suitable for future development.
Another benefit of investing in raw land is that the cost of ownership is often lower, which can allow for greater flexibility. Lastly, make sure the land you are buying is zoned for the type of use you plan on utilizing.
Ultimately, a well-researched, well-thought-out analysis of the location, surrounding development plans, and land characteristics are the best way to maximize returns on raw land investments.
4. Condominiums
Investing in condominiums can be another way to diversify your portfolio. This is because condominiums offer some benefits that differ from other types of investments. In particular, condominiums are often priced lower than single family homes, which can allow some investors will less capital to get started with their investment journey.
Also, if you’re buying a condo to rent it out and you’re not going to live near it, it can be handy that the central spaces, yard, and amenities will get managed, maintained, and cleaned without your involvement.
When buying a condominium, careful consideration should be given to the condition of the unit, the age of the building, and the cost of any necessary repairs or upgrades.
Of course, it can be expensive to invest in condominiums, so some people prefer timeshare investing. For example, you can learn about the benefits of owning a Hilton Grand Vacations timeshare here. Typically, the goal with timeshares is to book desirable weeks and then rent them out at a profit.
For example, if you invest in a beachside timeshare, you might book it for July 4th weekend or Memorial Day Weekend and then rent it out for a premium, often making a couple thousand dollars in the spread. I have a good friend who got their start in real estate investing this way. You can read about this approach here.
The Best Properties to Invest In?
Investing in property can be a great way to diversify and increase wealth. Understandably, different types of properties can provide different types of returns, so you should carefully research and evaluate your options to determine which properties will best match your financial goals.
With proper due diligence and a smart strategy, you can maximize your returns over time. Of course, if you’re new to real estate investing, please find a mentor or hire with a qualified investment advisor who can advise you on the best properties to invest in.
Did yo find this interesting? Explore the real estate section of this site to learn more.