4 Types of Real Estate You Need in Your Investment Portfolio

A diverse real estate investment portfolio can help to protect you from financial disaster. If the residential housing market collapses, then you can stay financially buoyant with your apartment investments. There are certain kinds of properties every investor should own to keep his portfolio strong.

Commercial Properties

Commercial Properties

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Commercial real estate usually refers to office buildings and undeveloped property in industrial zoned areas. No matter what happens to the economy, companies will always need office and warehouse space. As the economy comes out of a recession, some of the best property to own is undeveloped property in an industrial zoned area. One of the first signs of financial recovery is new office buildings being built on previously undeveloped land. Commercial real estate can also become extremely valuable when a municipality decides to start building new roads and they need your land to achieve their goals.

Condos

Condos

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The biggest advantage of owning condos is that they are generally seen as newer types of properties, and that can attract people with a lot of money. Another benefit to owning condos is that the residents of condos tend to take more pride in where they live and that helps you to retain the value of your property. The average cost of a condo tends to get people more involved in keeping their area clean and free from crime. That is the kind of resident involvement you do not see in most investment properties.

Apartment Buildings

Apartment Buildings

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Apartment buildings are great investments because they tend to be recession-proof. As long as you maintain your buildings and remain selective about who you take on as tenants, you will always have people asking to submit applications for empty spaces. In many cities throughout the country, median monthly rental rates for apartments are sharply on the rise because people are willing to pay higher rents to avoid the potential perils of home ownership. An apartment complex is the kind of real estate investment that should always generate a profit, regardless of the economic situation.

Residential Properties

Residential Properties

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One of the effects of the recovering mortgage market is the lowest interest rates in decades. Lenders are taking great pains to screen all applicants, and that reduces the possibility that a sale will get held up due to a declined mortgage. The residential property market was a risky investment for a year or two after the 2008 collapse. But with new home buyers ready to take advantage of the low mortgage rates, now is a great time to buy and flip residential properties.

Speculating in the real estate investment field has dropped significantly in the past few years. The days of buying an abandoned city lot in the hopes that it will appreciate in value are starting to fade away. But there are still plenty of properties that real estate investors can look at which will yield a positive return. As long as you keep an eye on the real estate trends in a particular area, you should be able to find properties that will allow you to turn a profit.

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