The definition of real estate is land and buildings for sale. Land can be plots of land ready for construction or land that has a strategic location which will have a potential in the near future when new property developments are needed. Each plot has its own unique characteristics and its location in a community determines its pricing. There are many ways in which one can make money from real estate investments. We are going to look at 3 areas you could venture into, which are residential, commercial and industrial properties.
Buying a piece of land and to construct a building is one way to generate money in the real estate market. Land that is reserved for residential purposes has in some countries strict guidelines and rules, how the house should look like, starting at the height of the building, to the size of the garage or car port, to guidelines that determine if a front garden is allowed or not. Therefore it is very important to inform yourself at the city hall that publishes these facts before you hire an architect and not ask for a building permission that is doomed to be accepted when you hand it in. If you build a house to sell it or to rent it out, the layout and the overall look has to cater the taste of the general public. Modern, light buildings with built-in kitchens and nice bathrooms are always desired.
You could also buy a larger plot and build two under one roof houses on it and sell one-off, when the construction shell is completed and the interior work starts. This is a way to finance the rest of the construction of your own home and leaves your buyer the opportunity to build the house of his own dreams.
Residential developments such as high-rise or low-rise condominiums with a community swimming pool, tennis court, maybe even equipped with an own fitness-center, complete with sauna and an own underground parking are wanted by people who look for long-term and short-term lease housing. Guarded by security that monitors the incoming and outgoing traffic give them a feeling of being safe and these type of buildings have the highest potential to generate a good yield when they are located in touristic areas and areas of high population density, as they provide a life-style that is associated with luxury and are therefore always high in demand.
Commercial real estate
The best option is to buy commercial buildings that have been abandoned and you rehabilitate them such that they regain their value. If the location is good for business your property will very soon find a new business owner yet remind yourself location is key before you start this venture.
are also valuable, they will cost relatively less to construct than commercial properties yet following up laws to prevent pollution and an extensive paper work has to be completed in most developed countries. Each industry has its own requirements which needs to be respected when the building is constructed, so you should know which market is in need to expand. You can buy industrial land and construct a factory hall or a warehouse on it and offer it for rent. Leasing of real estate in the industrial market will allow you to make a good yield on your investment. You will have the option of leasing your property for a specified period of time, when the contract terminates you can open room for buying negotiations, which are in your advantage, as nobody likes to move.