In a 2019 Bankrate survey, nearly a third of Americans said they preferred to invest money they wouldn't need for at least a decade into real estate. Whether you're funding your investment with savings, a loan, or anything in between, you want to start looking into a profitable property for you to purchase.
Before you dive in, though, let's narrow down your search. Here are three of the best options for a real estate investment.
1. Residential Real Estate
For many people who want to get started in real estate investment, residential property is where they start. After all, this category is the most familiar to them and, if they know the area where they're buying, they can easily select a property that will suit the typical renter who lives there.
You have so many choices when it comes to investing in homes: duplexes, condos, townhouses, standalone single-family homes... the possibilities are endless. There's always a high demand for a rental property in the Bay Area, too, which should make you more confident in your investment.
When you invest in residential real estate, though, you have many options as to how you can make a profit from it. For one thing, you can rent it out and earn passive income that way. Some investors choose to renovate a home and re-sell it right away for a big profit.
Either way, residential real estate in all its forms makes a great addition to your real estate portfolio, whether you keep it for the short or long term.
2. Commercial Property
Next up, we have the option of investing in property for businesses or buildings with several rental units. Office spaces, apartment buildings, hotels, retail spaces, and warehouses all fall into this category.
A great thing about choosing this option is that you can usually get longer leases out of your tenants. Companies or retail brands will have an easier time agreeing to a long-term lease, giving you peace of mind as a landlord that you will get your monthly payments for years to come.
3. Land and New Home Investment
If you want to look to the future, then investing in raw land could be the best property investment strategy for you. Check out expansion plans in your local area to pinpoint the next big building hotspots. Then, scoop up the parcel of land you can afford and wait to sell it later on for a nice profit.
You can also purchase land if you have an interest in becoming a property developer, although that will take a lot more work — and investment — before you see a profit. Some investors also get in early to purchase new-build homes or condos to re-sell them when the area becomes more desirable to buyers.
Try Your Hand at Real Estate Investment
Does one of these types of property appeal to you? How will you make your first real estate investment? In the end, only you can answer those questions — and only you can take the leap into the market.
However, we're here to help you once you've got a property (or two or three) under your belt. Click here to learn more about our property management services, which will be vital as you add more and more spaces to your rental portfolio.