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If you are going into real estate study,
you may find out there are many types of real estate in the market. Do
not worry about the many names they carry, as they can be categorized
into 3 major types.
What Are the Different Types of
Real Estate?
Vacant Land
Vacant land can be defined as a land with
no structure on it. However, there could be improvements like utilities
readily available. Vacant land is not the most popular type of real
estate investments as some see it as something abandoned.
If you own a vacant land, you can turn it
into a multi-million business, depends on its size. You can rent it out
and collect rental, you can grow crops on it, you can plant Christmas
trees and make the seasonal sales, you can build a livestock farm, you
can build houses and sell or simply wait until the time is right to
sell the land at capital appreciation. Of course, the best way is
always to generate steady passive income from it.
Residential Property
Residential property is the most actively
traded type of real estate. It is typically zoned for dwelling
purposes. Residential property can be in the form of:
Commercial Property
Commercial property can be in the form of
a vacant land specifically for commercial use. It can also be a readily
built commercial premise. The main purpose of owning commercial
property is to collect rental from it. There are many types of
commercial property, including:
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