Definition: Real estate investing refers to the purchase of property as an investment to generate income rather than using it as a primary residence. In simple terms, it can be understood as any land, building, infrastructure, and other tangible property which is usually immovable but transferable.
Some examples of real estate are a house, office buildings, agricultural land, commercial plot, etc. It is considered to be a secured form of investment.
Real estate includes various properties which can be classified by their uses.
Types of Investment Properties
Residential real estate
Residential real estate is virtually anywhere that people live or stay, such as single-family homes, condos, and vacation homes. Residential real estate investors make money by collecting rent (or regular payments for short-term rentals) from property tenants, through the appreciated value their property accrues between when they buy it and when they sell it, or both.
Investing in residential real estate can take many forms. It can be as simple as renting out a spare room or as complicated as buying and flipping a house for a profit.
Commercial Real Estate:
The properties or office buildings such as a complex are parted into multiple small units. These are rented out or used to run various businesses. Therefore, they are known as commercial real estate.
Industrial Real Estate:
A large-scale property utilized to build factories, manufacturing units, warehouses, distribution centers, etc. is categorized
under industrial real estate.
A mixed-use property can be used simultaneously for both commercial and residential purposes. For instance, a building may have a retail storefront on the main floor such as a convenience store, bar, or restaurant, while the upper portion of the structure houses residential units.
Any vacant land where activities like ranching or farming take place is also a form of real estate.