There are various types of real estate investments that you can look into to diversify your financial portfolio. Each one has its own advantages suited to a particular lifestyle. While some types of real estate investments are more passive, or involve a smaller capital investment, others will need a more hands on approach, as well as a larger initial investment. Here’s a list of the 4 types of real estate investments that you can find in the Philippines.
- Raw Land
The Philippines, along with the rest of the world has been buying and selling raw land for thousands of years. This type of real estate investment is the acquisition of any available piece of land that can be resold or developed for a specific purpose. This appeals to investors for the historical rise of land’s market value and its comparably lower capital investment.
There are several ways to maximize this type of investment. The buy and sell approach is relatively common as investors also need to consider or wait for the optimal resell value of the property.
Another approach is the acquisition of land for further development. Apart from an increased capital investment, this endeavor will also require knowledge of real estate information such as building codes, regulations, and permits.
When it comes to raw land, there are numerous possibilities. With extensive research, planning, and effort into its development, your investment can achieve maximum returns.
- Commercial Real Estate
This type of real estate investment is often used as an umbrella term that involves the acquisition of non-residential properties like hotels, office spaces and retail establishments for the purpose of gaining profit. Businesses and investors alike are often drawn to this type of real estate for its potential to generate a higher return of investment. This active type of investment maximizes its revenue potential by leasing out their property for over a longer period of time to other businesses. This results in a lower percentage of vacancies, and a more consistent revenue stream.
As this undertaking will be open to the public, these types of investments are often managed with a group of experts in the field. Commercial real estate investment will also require a larger capital investment, relative to the property’s current state. They’ll also need to factor in the cost for the maintenance and upkeep of the property. While investors stand to generate a higher cashflow with this type of investment, managing the concerns and leases of numerous tenants is also something an investor will want to consider before going into this venture.
- Industrial Real Estate
While some consider this as a subcategory of commercial real estate investment, the specifications it requires merits its own spot on the list. Industrial real estate is property developed with the intention of being able to house the manufacturing, producing, or storage of specific goods. Some types of industrial real estate include warehouses, facilities that process raw material, research and development centers, and many other manufacturing facilities.
The growing demand for industrial real estate is what draws investors in. From their longer lease contracts to offering micro services for tenants, this type of real estate investment has a higher earning potential.
Although higher profits are favorable, the investor will need to consider the highly specific repairs and remodel of such facilities. Unlike smaller real estate ventures, the holdover period can take much longer for industrial real estate properties.
- Residential
This is arguably the most well-known type of real estate investment. Residential real estate investment involves the procurement of residential property, whether it be a small condo or a large dream house with the purpose of utilizing the investment for profit.
Residential real estate investments is another active form of real estate that can generate profit in various ways. It can be as simple as buying and selling properties for profit or as tedious as renting out sections of a property to multiple tenants for short periods of time. Investors also have the freedom to explore a combination of these various revenue streams by renting out their property with the long term plan of selling the property for a profit.
In truth, no one particular real estate investment reigns supreme. There are only investments that are better suited for your lifestyle and financial goals. Bacolod, with its growing real estate market, is a prime choice for anyone looking to invest in real estate.
In the heart of the city of smiles is Rockwell Center Bacolod, a self-sustaining community with sustainable parks, residential properties, and commercial establishments built with signature sophistication and security. Its 1500 to 2000 sqm commercial lots with 7-meter linear parks makes each lot a premium and viable investment for investors looking to ride the wave of a quickly developing area. The newly launched Bel-Air Residential Lots also serve to provide a premium horizontal community with well-designed central amenities and close proximity to retail establishments and Power Plant Mall.
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