Investing in real estate involves purchasing, managing, and profiting from properties, which can range from residential and commercial buildings to land and real estate investment trusts (REITs).
A. Residential Real Estate
- Description: Properties used for living purposes, such as single-family homes, apartments, condos, and townhouses.
- Income Source: Rental income or resale at a higher price.
- Examples: Buying a rental property, flipping houses, or leasing vacation homes.
B. Commercial Real Estate
- Description: Properties used for business purposes, such as office buildings, retail spaces, and warehouses.
- Income Source: Rent from tenants, often with longer lease terms than residential properties.
- Examples: Shopping malls, office parks, and industrial complexes.
C. Industrial Real Estate
- Description: Properties used for manufacturing, storage, and distribution.
- Income Source: Rent from companies requiring industrial spaces.
- Examples: Factories, warehouses, and logistics hubs.
D. Raw Land
- Description: Undeveloped land purchased for future development or resale.
- Income Source: Sale after appreciation or leasing for farming, mining, or solar energy projects.
- Examples: Agricultural land, plots in developing areas.