Get to know some of the types of real estate investments that exist and discover which is the most suitable for you and your investment portfolio
There are various ways to invest your capital and real estate offers truly profitable options with multiple benefits that you can obtain, so real estate investment becomes one of the safest ways to invest in the medium term.
Real estate investment is not limited exclusively to the purchase of houses or apartments to later put them up for rent, because thanks to the versatility of land use of a piece of land, these can be used for various sectors, from residential to commercial and industrial.
So what types of real estate investments are there? Keep reading the following article to find out!
1. Real Estate Investment Trusts (Reit)
The Real Estate Investment Trusts (REIT) are capital investments to generate profit through the rental of real estate such as offices, commercial premises and hotels.
In it, the owners of the assets contribute certain amounts to the trust, which is in charge of expanding the portfolio of assets. When an investor needs liquidity, he can sell his share in the stock market.
2. Investment in commercial real estate
Offices, hotels and multi-family homes are the best commercial real estate investments you can make, this is because this type of investment has the highest cash flow, offers the highest level of income and much longer leases, in addition to a lower unemployment rate.
3. Investment in residential real estate
Single-family homes are one of the most common residential investments, as are duplexes, multi-family properties, and vacation homes.
Residential investment is ideal for all those people who want to invest to generate profits on a consistent basis. Of course, there are numerous residential property investment strategies that can be applied and different levels of competitiveness in the markets.
Some of the most common real estate investment strategies in these properties are remodeling, buying and maintaining these properties, which can be used to generate rental income.
4. Investment in industrial real estate
This type of investment involves everything from industrial merchandise warehouses or any other type of real estate that generates income from the use of facilities by customers. They can often have significant fees and revenue streams for services, such as snack vending machines, to increase the return on investment for the owner.
5. Residential Land
When it comes to investing in a piece of land, you have to make sure that it has all the necessary services to carry out any of the following options:
- Build a house to inhabit it (Heritage)
- Build a house and put it up for rent (Investment)
- Resell the land within a certain period
An area with high economic growth in Mexico can achieve up to 30% annual yield just by purchasing a lot. Property never loses its value and it is easy to start investing with relatively little capital without the need for a bank loan.
6. Investment in house flipping
In this modality, the investor acquires a property at auction or auction, remodels it and sells it at a considerably higher price.
It is a profitable investment, if you have enough management time, since you will have to give yourself the task of finding offers with opportunity, calculate the initial purchase and make a list of the maintenance costs that arise to later execute.
7. Investment in Real Estate Fractions
Investing in real estate fractions consists of a property being acquired by several investors and they become owners of the rights to the property; creditors to the flows generated by rents.
They also have the opportunity to have access to the property to enjoy it, this option is very popular for vacation rentals in Mexico. Definitely an option to consider.
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If you would like to invest in fractional real estate in the destinations with the highest capital gains in Mexico, let us advise you that with the help of our experts we can help you find the most suitable property to diversify your investment portfolio and obtain returns of up to 15% per year. Contact us now at info@ancana.co! Or call us at +52 55 8993 8510.
Owning a vacation home has never been this easy.