There are all kinds of investment properties, and if you’re someone interested in joining this industry then you’re in for a good show – it is an excellent thing to do to grow your wealth from time to time.
Although it may be a lucrative business, not every type of investment property is suited for you. There are quite a few things to do consider when choosing the ideal property, but before we go into there – it is important for you to know the different types of investment property.
Types of Investment Property
There are several types of investment properties out there. If you really want to invest in this business, then you need to invest all your time in good research on the type of property you want to invest in.
Below, are the different types of investment property that you can invest in for some extra profit.
- Residential Property: These properties include apartment buildings, vacation houses, HDM, condominiums, BTOs and so on. Individuals and families usually pay some agreed sum of money as rent or lease, for making use of the property. Payments are usually made for 12 months or the number of years on lease in most places, and Treasure at Tampines in Singapore is one of them.
- Commercial Properties: Properties of this type are usually skyscrapers and office buildings. This category of properties is common in the commercial hub of cities. If you have decided to use a portion of your savings to acquire properties with individual offices – you can choose to lease them out to small business owners and companies, who will pay you rent to use the space.
- Industrial Properties: Industrial properties are the most expensive and valuable types of property. Some of the common industrial properties include warehouses, truck terminals, plant buildings, assembly lines, showrooms, and so on. Owners of these properties are required some specific service fees. It’s unarguably a good source of generating revenue – the only issue is that you have to fork out quite a bit of money.
- Retail Properties: These properties include strip malls, shopping malls, and other retail shop fronts. Owners of the property also have the chance to receive rent from their tenants. Many investors with low start-up capital buy this type of property.
- Mixed-Use Properties: These type of properties have to do with the combination of any of the above properties to form a single venture. These properties are always difficult to acquire because they are very expensive and rare.
Choosing The Right Investment Property
Like other businesses, there are procedures and professional precautions that have to be followed in order for investors to be successful in this business. However, here are the guidelines that must be followed in choosing the right property for investment.
- Location: The location of a property determines its worth. When getting a property for investment, look for areas that are improving in terms of economic growth, population and cost of living. When you acquire your property in a favourable location, you’ll get a huge return on investment. Make sure you take a look at the site plan of the property as well because it’s not just about the convenient amenities and services – you want a comfortable living space that provides you with everything that you need.
- Invest in known property: Many investors make this mistake a lot, which leads to their eventual loss. Be familiar with your property of investment know how it can yield a profit in the long run. Usually, it requires you to do substantial research before you make a decision. Look at case studies and existing properties like the Treasure at Tampines launch in Singapore – you will get a better idea of how properties work.
- See into the future: As a good investor, you are required to see what’s likely to happen to your property in future. You should be able to predict how the investment property could yield a sustainable income and the effect of government policy on it.
- Cost of maintenance: Always choose properties with low-maintenance cost, it will really save you a whole lot of cash. So, you can rest easy when you’re thinking about your spare cash.
Now that you know the various types of investment property and the right way to choose one – it’s time you invest in one yourself. However, before you even decide on any specific property, you’ll have to check the balance units for any available space.
Once that is done, you can go ahead and reap the benefits of this profitable investment and earn some spare cash.