Are you interested in real estate investments? Then you may be intrigued to know that there is actually more than one type of investment involved. A lot of people think real estate means buying and selling houses, but it’s about more than that.

Below, you will find the top three real estate investments for you to make, check them out for more info:

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Residential Properties

When most people think of real estate investments, they’re probably thinking about residential properties. What are these? They’re properties that people inhabit and live in. So, it’s anything from a house to a stationary caravan. They also happen to be the easiest investment to get your hands on. The real estate market is flooded with residential properties for sale, there’s always something for you to invest in.

The beauty of this investment is that your options are wide open. Residential properties vary in price, from very low to very high. This means you can get your foot on the investment ladder by buying something small and cheap - like a stationary caravan in a holiday park. You can start off small, make profits on your investment, and move onto something more expensive. Keep going until you’re finally buying and selling houses. That’s one main way people make money here, they buy residential properties and sell them for a higher price. To do this, they’ll often make cost-effective improvements to increase its price.

The other method of making money is by investing in properties and renting them out. This is arguably the most popular method amongst modern real estate investors. Why? Because houses are becoming very expensive, meaning more people struggle to afford them. What’s the solution? They look for properties to rent instead. As such, the rental market is growing, and there’s loads of money to be made there. The joy of investing in residential properties is that you can purchase a large house and convert it into two or more flats. Thus, you get rent payments from multiple people for the same house. As the money comes in you earn enough to invest in a new residential property too. Now, you can rent that one out as well, and the cycle continues until you have your own residential property empire.

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Commercial Properties

It’s very common for people to stick commercial properties in with residential ones and just use the blanket term ‘property investment.' However, the fact is, a commercial property investment is different from a residential one. What’s a commercial property? It’s a property that’s used for commercial purposes, e.g. an office or retail store. They’re desirable for businesses rather than individuals and families.

The way in which you invest in commercial properties is similar to residential investments. You buy a property, with the intention of making money from it. Sometimes, you buy commercial properties and then sell the building to businesses. Some companies like to own their office building, so this is a decent idea to make money. However, most likely, your main return on investment will be through renting your property out for businesses. There will always be a business looking for an office or retail unit that they can rent. At this point, you probably think there’s no difference between the two property investment types at all. But, with commercial renting you have plenty more laws you need to obey as a landlord. You have to ensure the building is safe to work in and can come under fire if it isn’t. You’ll also be dealing with businesses, not individuals so the money involved could be considerably higher too.

Commercial properties tend to be expensive because they’re much bigger than residential ones. Think about it, one commercial property could house four or five offices. There are even office buildings that contain dozens of offices. This is very much an investment opportunity for someone with experience in real estate, it’s not for beginners.

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Land

People get so caught up in property investments they forget that land also comes under the real estate banner. If you have a look around you will find lots of land for sale that throws up a huge investment opportunity. Buying land is pretty self-explanatory, someone owns a piece of land, and they will sell you either the whole amount or a portion of said land. You buy it regarding size, it comes in square feet.

What’s the main benefit of land that sets it apart from the other options? Mainly, you have so many more options with this type of investment compared to properties. With land, you have the potential to do so much, and earn loads of money. The most popular thing to do is build properties on your land. It’s such a simple idea and brings in a huge Return On Investment (ROI). Some people will build a property that they then inhabit. It becomes their family home, and they can sell it on for huge profits along with the land itself. However, more often than not, the landowner will build apartment structures or multiple houses on their stretch of land. When the building is complete, these properties then get put on the market for other people to buy. You can sell your properties to investors who will then probably rent them out, or you can sell them directly to people and give them a place to live.

The joy of doing this is that you’ve built brand new properties. New properties are often far more expensive than other similar items on the market. Why? Because they’re new and that means they will have no structural problems and no wear and tear. So, you can make an absolute fortune by investing in land and building new properties on it.

The downside of investing in land is that it’s a huge financial commitment. The land itself will probably be reasonably priced when compared to other real estate investments. But, building properties will cost a lot, you just have to think of the end goal and all the profits you will make when everything is over. Of course, there are other ways you can make money from investing in land too. If you’ve got a large piece of land out in the country, then you can make tens of thousands a year by having wind turbines installed there. The government is always looking for ways to supply more renewable energy, and they need land to build turbines on or construct solar panel farms. This is a great way to turn your land into money.

All three of these investments are great for you to look into. They’re not listed in order of which one is better than the other, it’s more of a step-by-step system. If you’re looking to get involved with real estate investments, then you should start with residential properties. They’re the easiest to get started with, and will often throw up the cheapest investments. Then, move onto commercial properties when you’ve built a bit of a portfolio. When you’re a true investment pro, that’s when you should think about land. Of course, don’t be fooled into thinking you can only invest in one type at a time. You can easily have your residential and commercial investments going on at the same time while investing in land too. The beauty of investing in land is that you can also combine other investments together too. You’ll build residential/commercial properties and rent them out.

There’s a reason everyone loves investing in real estate, it’s simply the best way of making money and seeing an impressive ROI.