First of all, despite the fact that real estate investment has historically been more profitable than even investing in equityÂ , the fact is that it is a type of investment that requires more capital in most of its forms, or intelligent indebtedness in other cases.
What kind of real estate investments are there?
1. Investment in residential real estate.
Properties like houses, townhouses, apartments or apartment buildings, where we have the possibility to charge a tenant the stipulated amount during the duration of the contract.
2. Investment in commercial real estate.
Office buildings and commercial premises. In business buildings, we are more likely to need heavy financing by a bank, because the idea is to rent the different offices to other companies or businesses.
3. Investments in industrial real estate.
From industrial warehouses to all types of land destined for the industrial area.
4. Investments in shopping centers.
This type of investment does require a lot of capital. Shopping center rent out all the spaces for shops, coffee shops, cinema and big food chains, and occasionally, nightclubs. This business has been very lucrative for many years.
7. Invest in real estate through REITs.
Real Estate Investment Trusts (REITs) are a way to invest in real estate as if you were investing in stocks.
REITs are companies that invest in real estate assets with the idea of â€‹â€‹generating income and paying investors in the form of dividends. They are attractive because they are often subject to very low taxation. However it is a complex investment that requires thorough research.
REITs haveÂ daily prices and are very liquid assets that can be sold and bought relatively easily and quickly.
I don’t know if I left anything out, but if so, please do not hesitate to leave a comment.