Investment Property – The real estate sector is one of the most booming sectors in India. When it comes to high return on investment, the real estate sector meets your expectations. There are various real estate properties to invest in, making it challenging to choose from. But the good thing is each type of property has some unique benefits.
While investing in real estate, our top priority is maximum return with low risk. Considering the right type of property to invest in depends on your financial status, goals, etc. Before investing in real estate, some key factors should be considered to determine the best property investment for you. So, let’s explore the different types of real estate property to invest in.
Unlocking the Potential of Your Investment Property
Residential Property
There are varieties of residential real estate properties to invest like single-family properties, multifamily homes, apartments, duplexes, vacation homes, and many more. Among all, single-family properties are supposed to be the most common real estate properties to invest in. The residential property is ideal for investors when it comes to consistently gaining high profits with low risk. In 2022, India’s residential real estate sector is expected to achieve around 5% capital growth.
Generally, the residential property generates the rental income that increases the cash flow. In residential properties, investors generally apply the strategy of wholesaling the property, rehabbing, and buying and holding. We believe it’s safe to have a market analysis before applying any strategy. Investing in a residential property in the right way makes you great profit and gives you several tax-saving benefits.
Commercial Properties
Despite the Pandemic, the commercial real estate sector has witnessed remarkable growth. According to NITI Aayog, the Indian real estate industry is expected to reach around $1 trillion by 2030. Commercial properties have a lot of opportunities to make your investment worthy. Commercial real estate includes office space, industrial buildings, warehouses, retail, hotels and many more.
The commercial real estate sector is popular because of the potential for high cash flow, long leases, and minimum vacant rates. The most important factor when considering any commercial property is location. You must use the right metrics to analyze the property location. Compared to residential properties, you may face less competition because of the large undertaking.
Investing in Raw Land
Raw land is considered the best investment option for a long-term investment. It diversifies your investment portfolio and assures you high project growth. Raw land includes vacant lands, working farms, ranches, and many more. Buying vacant land gives you numerous opportunities. You can develop a property over it or make a profit from holding it for a long time. Before investing in raw land, deciding whether to develop a property or keep the raw land is essential. You must have a grand vision of that market area.
Real Estate Investment Trust
A real estate investment trust, commonly known as REIT, can be a suitable option for real estate investment. These companies invest in real estate properties and give profit share as a return. REITs own various types of commercial properties like offices, hospitality, shops, and malls. On the stock exchange, you can invest in different REITs. REITs have to return 90% of their taxable income to shareholders annually.
If you plan to invest in real estate, you can consider Property Epicenter. They are India’s leading real estate planning company, providing the best commercial and residential properties with unique features.