Types of Real Estate Investments

DAMAC PropertiesWhen talking about real estate investments, most individuals only think of buying and selling properties. This may seem right, but you also need to know that there are different types of real estate investments. To know about these, below is a list of the most common real estate investments.

Residential real estate investments

Residential real estate investments are properties such as houses, apartment buildings, townhouses, and vacation houses that are rented out by a person or a family. Rental payments as well as the length of their stay may depend on the agreement between the landlord and the tenant.

Commercial real estate investments

Commercial real estate investments consist mostly of office buildings. Apart from gaining profits from tenants, tenants are also responsible in maintaining the real estate, getting insurance for the property, and even paying real estate taxes.

Industrial real estate investments

Industrial real estate investments consist of storage units, car washes, and other special purpose real estate that generates sales from customers who temporarily use the facility. Industrial real estate investments often have significant service revenue streams.

Real Estate Investment Trusts

Real Estate Investment Trusts or REITs trade like stocks and own a portfolio of underlying real estate or real estate mortgages.

Trivia Info Source From: www.damacproperties.com

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