Three Major Types of Real Estate Properties

Real estate is one of the best investments available. Unlike gadgets or cars, real estate value doesn’t depreciate quickly. It’s also a necessity, which means that there will always be a buyer if you want to sell. There are three major types of real estate properties and each of them has their own relative worth:

1. Vacant Land

Farms and ranches in Owasso are just some of the properties that are considered vacant land. They are generally large in size and have a high market value. However, there are things to consider if you want to purchase vacant land. Certain factors like topography, shape and size, and landscape might affect the market value.

You will need to zone the property and determine which parts of the land can be used and for what as well as required building setbacks on the property. Knowing the previous uses of the property is also important, especially if the vacant land will be used for residential or commercial investment. You have to make sure that the property has not had any environmental contamination.

2. Residential Properties

According to studies, residential properties are one of the most common type of real estate investments. Since housing is a necessity, a lot of real estate brokers tend to focus primarily on residential properties.

Residential properties include condominiums, single- detached homes, duplexes, townhouses, vacation homes, high value homes, etc. Residential property market focuses on the personal wants and needs of the homeowners.

Some studies show that 65% of the households in the United States owns their own house while 35% of the population are renters.

3. Commercial Properties

Commercial properties can be a massive empty land zone or buildings which can be leased. Commercial properties are a bit more complex than vacant land and residential properties. The property’s location, cash flow, and historic value are just some of the things that needs to be considered when dealing with commercial properties.

 What’s good about commercial property is that it has a higher cash flow percentage than both vacant land and residential properties. For commercial properties, you can either buy, sell, or lease the area, depending on what generates income best.

Knowing each type of real estate and their market value will lead to a great financial reward, especially for people who want to venture into the real estate industry. Each property type has a useful function and can be a great investment.