What Are the Different Types of Real Estate?

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:

  • Single family home - it is a kind of detached house specifically for accommodation of one family.

  • Multi family apartment - it is a kind of residence where multi family live under the same roof, but own their respective separated units.

  • Townhouse - it is a row house, usually with 2 or more storey and share one or more walls with other units.

  • Condominium - its structures are similar to those of an apartment, but it is more upscale.

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:

  • Office property - like office buildings and business parks

  • Retail property - like shopping malls and supermarkets

  • Industrial property - like factories and warehouses

  • Leisure property - like hotels, restaurants and cinemas

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