The 7 Different Types of Real Estate Investment

When it comes to real estate investment, this can be a great way for many to make money. While investment risks can be high, 2024 seems to mark a turning point towards increased liquidity in real estate markets, with more clarity into the market this presents, an advantageous window for potential buyers to consider.

Common Types of Real Estate Investments:

1. Residential Real Estate

Buying properties to rent out or inviting vacation rentals can help bring in a steady rental income that may increase in value over time, contributing to the appeal of property value appreciation.

2. Commercial Real Estate

Investing in commercial real estate and business spaces such as offices, shops, warehouses, or factories opens up opportunities for higher rental returns/rental yields, but it often requires a bigger initial investment.

3. Real Estate Stocks

Sometimes, instead of owning a property directly, people choose to invest invest in companies that own and manage real estate, which can be less risky.

4. Fix-and-Flip

Purchasing rundown properties, fixing them up, and subsequently selling them at a profit. This demands a keen understanding of renovation costs and local market dynamics.

5. Real Estate Crowdfunding

Online platforms serve as a channel for combining resources, enabling investors to join with others and invest in bigger real estate ventures, spreading out the risk and and gives you access to opportunities you might not have alone.

6. Short-Term Rentals

Leveraging platforms like Airbnb or to rent out your property for a short stay can present a good avenues for lucrative short-term rental income streams. This current market is particularly strong with a high tourist demand and corporate traffic.

7. Vacant Land

Investing in undeveloped land for future development can pay off in the long run with area growth the land will become more valuable.

Check out some of our land development sites here.

Hotel Investment Opportunity: Travelodge London Bermondsey


Things to think about Before Deciding to Invest:

  • Look at the local real estate market to see what’s happening and what might happen in the future
  • Evaluate how much money you might make from your investment, including how much you’ll spend to buy the property, fix it up if needed, and operational overheads.
  • Assess and address risks involved in the chosen investment avenue, and come up with a strategy to how you might mitigate these risks
  • Plan for the future: whether you decide to sell it, keep it, or do something else, it’s important to encompass avenues like divestment, refinancing, or long-term asset retention.
  • Seeking advice from real estate professionals, financial advisors, and legal experts can help you make informed decisions that align with your personal financial goals.

Real estate investing is a long-term game, and it takes planning and patience to succeed. Talking to experts who understand your situation and goals can help you make the right decisions for you.

If you need expert advice on your investment plans, feel free to contact us today.

KALMARs | This email address is being protected from spambots. You need JavaScript enabled to view it. | 0207 403 0600

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