- Posted May 13, 2014 by
Different Categories Of Real Estate Properties
Property investing is something that most individuals want to engage in. One of the very first thing to decide is which among the different categories of real estate properties would you like to invest in. To help you out, here are the 5 different categories of properties:
Residential – These properties are those that serve as housing or perhaps as a dwelling. These will include single-family homes, duplexes, along with other multi-family homes. These properties can either be located in rural, urban or suburban areas. Be reminded that although some real estate laws and practices may classify a property in a certain category, the same might not be true for the lender. Sometimes, multi-family properties of 5 or more units are usually considered commercial property in the eyes of the lender which usually makes them not eligible for residential loans.
Commercial – Many individuals think that commercial property is a site where business or commerce takes place like office buildings, parking facilities, hotels, theaters, motels or shopping malls. A buyer who seeks commercial property has a different set of inquiries as opposed to a residential buyer. There will actually be concerns on zoning, cap rates, as well as parking. It is indeed in the best interest of a buyer to look for a real estate professional specializing in such field rather than a residential specialist.
Agriculture – This will include ranches, orchards, timberlands, and farms.
Special-purpose – This category, on the other hand will include churches, cemeteries, government held land and schools.
Industrial – This category sometimes is confused with commercial property since it likewise has a commercial use. In fact, agriculture and special-use properties also have commercial uses. Industrial property will include factory and warehouses, land located in industrial districts or power plants. It is indeed very common for industrial property to be utilized in a way that it might be classified as commercial. For example, a retail store might set up shop within a property which is regarded as industrial.
Knowing these different categories of properties will greatly help you on which to invest in. But remember though that having this know-how is not sufficient to ensure that you will be successful in the field of property investments. Be reminded that there are still a lot of important things you must be aware about. These will include determining your needs, your budget, the location, as well as choosing the best real estate professional to help you out throughout the investment process. More information about property search and investment here.