Do you want to know the different types of real estate? Are you looking for your next potential investment in the property market? Are you looking to hire a company like valuationsVIC to do the valuation before purchasing? Check out this article to know the five main types of real estate.
What is Real Estate?
First of all, let us know what exactly Real Estate means. Real Estate is a form of Real Property. It is nothing but land with some additional permanent improvements, natural or human-made, like fences, buildings, trees or even minerals.
For a better understanding, let’s know the primary difference between land, real estate and real property.
In the simplest term, the land is a surface of the Earth down to the centre and upward to the air above, including the trees, minerals and water.
Real Estate, as stated above, is a land with some permanent additions like buildings or house.
Along with the physical nature of the real estate, the real property also includes a bundle of rights and benefits that you can enjoy, as an owner.
Types of Real Estate
Now, let’s move a bit further and know about the different types of real estates in Australia.
Residential Real Estate includes the multifamily and single-family housing located in urban, suburban as well as the rural areas.
The main reason for people to buy residential properties is usually gaining home-ownership. If you are tired of paying rents and want to be on your own, you will surely want to buy a residential property.
There are different types of residential property that you can buy, as per your requirements and budget. Some of the common types of residential real estate in Australia are:
Single-family homes are the most popular type of residential properties in Australia. The best example of single-family homes is the townhouse.
Apartments are mainly found in urban and suburban areas. These type of real estates require a large space, and they are popular among investors as they are less risky and easy to manage.
This type of housing is similar to a bungalow. The owner can build anything within the boundary of his property as long as it does not violate any rules.
Terraced-houses were introduced to Australia during the 19th century. They are mostly built in the inner suburbs of large Australian cities like Melbourne, Sydney and Brisbane.
A semi-detached house is nothing but a single-family home sharing a wall with the house next to it. The prices of these dwellings can be higher in premium suburbs where demand is high, and the land is scarce.
Commercial Real Estates are the properties that are solely used for business purposes. It includes shopping centres, educational and medical buildings, offices, parking plots, hotels and department stores.
Below-stated are some of the well-known commercial properties:
Business property includes any type of real estate that is owned by a business entity.
Many investors seek for Real Estate Investment Trusts that are shopping centres investment.
Office space is a place where office activities take place.
Retail or Departmental Stores
Retail and Departmental stores are also an excellent option for investors.
Movie Complexes, Hotels & Motels
Theatres, hotels and motels can also be an alternative for realty investors.
Parking lots are an underestimated real estate investment. With the usage of technology, you can easily manage these spaces and get a fair amount of return.
Industrial Real Estate includes properties that are useful for industrial purposes like warehouses, factories, mills, powerplants, etc. As an investor, you might not be much interested in industrial property.
However, investing in industrial real estate should not be underestimated. Some of the familiar industrial properties are:
Warehouses are used to store goods and keep the products flowing to their customers efficiently. An investor should consider all the possible potentialities of warehouse investments.
Factories, also known as manufacturing plants, are manufactured in a complex systematic operation. Investors usually turn a blind eye on the factories as an investment.
Power Stations generate electricity and create electric power. Innovation allows investors to make some revolutionary investments.
Agricultural Real Estate includes lands that can are used to grow crops and plants or raise animals. Agricultural properties are very vital from the investment point of view. The investor can earn profit by buying, selling or leasing the property. Types of agricultural property:
A farm is an area of land primarily used for agricultural purposes, producing food, plants, raising livestock.
A ranch is similar to a farm with the primary difference that a farm produces food crops, and the ranch is used for raising livestock.
Orchards are places where you can grow fruits.
Timberland is a property covered with forest that can be used for timber. There are several ways through which you can invest in this type of real estate.
This type of real estate usually includes public properties like libraries, schools, government buildings, cemeteries, gardens.
To sum up, there are a lot of options when you think of investing in Real Estate. So, keeping your requirements in mind, you can choose one from the types mentioned above of Real Estate.
Thank you for reading!