The various real estate types are residential, commercial, industrial and retail. Let us look at the 4 mainstream types in more detail with Your Personal Financial Adviser.
Residential real estatecan be leased by a landlord to a tenant. Examples of such realty are apartments, row houses, condominiums, vacation houses, duplexes and self-contained houses. These need a tenancy agreement, or lease agreement, to be drawn up and signed by both parties, with rent being paid to the landlord at regular, pre-determined periods. Residential real estate can also be sold to an outright buyer, by entering into a sale deed with the owner. Even if, if you need flat roofing service, then you may get it from the best place by conduct a search. And from that place you can get clear ideas about real estate types, and these companies deal with residential real estate agents or landlords.
Commercial real estate types include offices, hotel apartments and hotels, healthcare, schools. Such units have high operational costs and are closely linked with geographic economic conditions. A commercial realtor would also deal with mixed-use properties that have both residential units and retail outlets.
Industrial real estate is where the big money lies, among all other real estate types. Such units are usually huge, with high ceilings, placed close to a transport route, and with a surrounding yard or open space. Factories, parking lots, warehouses and automotive facilities (car wash, repairs, servicing) make up the industrial realty sector.
Retail real estate types are shopping malls and retail storefronts. In addition to the base rent, the landlord may also take a small percentage of the retail units’ profits, and render high-quality maintenance and upkeep in turn. Location of the property is always a key factor in real estate brokering, but it is of utmost importance in these real estate types, as it drives visibility, population density and income levels.
In recent times, a new entrant into real estate types is slowly gaining popularity – real estate investment trusts – which invest in a portfolio of real estate holdings and are traded on the stock exchange. Another way of classifying realty would be those that regularly generate income and others that give profit via capital appreciation. Vacant land falls in the latter category. This land is used for agriculture or farm-breeding, and has high profit potential, due to the large size of real estate involved.
As a new real estate broker, it is advisable to stick with residential dealings. These are the simplest, involving less maintenance costs. Once you get a good grip of the intricacies in real estate types of dealings (in particular, the finer details of the underlying laws), you can venture out into larger revenue-earning types.
Also, you can find more information about common types of real estate here.