Real estate includes many things other than houses. In fact, the actual definition of real estate is that it is any property, land, buildings, and air rights that are above ground, along with the underground rights below it. The thing is, most of you only encounter the real estate market when buying a house. So, it’s easy to assume this is the only way of getting on there.
On the contrary, there are other forms of property and different types of real estate you can invest in. It’s worth looking into these alternatives as a house can be pretty expensive. The ideas below present with some cheaper and more cost-effective ideas to consider:
Mobile Homes/Static Caravans
The exact word for this type of property varies depending on where you’re from. To clear up any confusion, we’re talking about small homes that are usually found in campsites or caravan parks. They tend to contain only one floor of rooms, usually with one or two bedrooms, a bathroom, and a kitchen/living area. Due to their size, these properties are really cheap. They’re a good real estate investment as many people are choosing to downsize and live in these small homes nowadays. Plus, you can rent them out to holiday-goers as well. The cheapness means you can definitely afford more than one of these instead of buying a proper house.
Yes, land is a viable and successful real estate investment to consider. Many benefits can present themselves to landowners. Firstly, you could build your own property on this land and then sell it to someone else. Or, you can hold onto the land and sell it to property developers when they come looking. Finally, many clean energy companies are looking for land to put solar panel farms or wind turbines. You can let them use yours and get compensated for the trouble. The bottom line is that there’s a lot of land for sale and many things you can do to turn a profit. Also, the land itself will be cheaper than buying a house. At least, it generally will be! Put it this way, if you have a plot of land and a home side by side, the land will be less expensive.
Next, you can look at some commercial property rather than residential. Again, a common misconception with real estate investments is that it’s only residential stuff up for sale. Commercial properties exist in vast numbers, but you usually have to do some sniffing around to find it. Regardless, offices can often be cheaper than houses – or at least a similar price. Even if they’re more expensive, you have to consider the long-term gains. With an office, you can get rent from companies every single month for many years on end. Also, remember that an office building holds more than one office. So, you can get rent from multiple tenants all in the same building at the same time. This creates a constant stream of revenue that helps you turn a profit in no time.
From commercial real estate to industrial real estate. These two categories often get consumed as people think that industrial real estate is a type of commercial real estate. However, the key difference is in the type of property you will invest in. The commercial is more to do with offices and retail units, while industrial is more focused on warehouses and the like. As it happens, a warehouse could be a fantastic real estate investment to consider. Seeing as it is literally just a large building with hardly anything inside, warehouses are very affordable. Take into account that most businesses need a warehouse for something or other. Some companies operate directly out of them, while others rely on them for storing goods. The demand for your property is high, so you can make a killing renting it out.
Apartments basically bridge the gap between houses and mobile homes. They’re usually smaller than proper houses but big enough for a family to live a comfortable life. Interestingly, they’re not always cheaper than houses in the same area. However, this is because you can earn lots of money buying an apartment and renting it out. This approach attracts lots of tenants year after year, and you could even rent it out to holiday-goers as well. If you don’t have enough money to invest in a house, you do have more chance of finding an affordable apartment.
If you want to dive into the real estate market without buying an actual house, these are your best options. Some are far cheaper, while others hold better earning potential. The choice is yours, just be aware that houses aren’t your only option.