Real Estate investment has shown a promise this 2015. The real estate market has been going strong in the U.S. But the question that lies in Real Estate investment is what type of property to invest?
The National Real Estate Investor has shared some salient points on what types of property to invest in the real estate market.
First that comes on the list is the Apartment. It has been noted that the apartment building may be sold at premium but the reason for that is because the rents have been mounting up. Based on the facts, "New resident rents rose 5.2 percent over the 12 months that ended in the second quarter. That's the biggest rent hike since 1999-2000, according to the latest data from MPF Research, based in Carrollton, Texas."
Hotels come second on the list of top 6 real estate property types to invest. To date, "hotels are now reaping the benefits of a growing economy," says NREI. As remembered hotel industry has greatly suffered during the economic downturn.
Third on the list is Student housing. No one could go wrong in this sector has been thriving since younger demographics are the thrust for its success. There is always a rush to acquire student housing. It is dubbed as the "seller's market".
The next property type to invest is the neighborhood shopping centers or neighborhood retail. Everyone needs a place to eat or shop. So neighborhood retail continues "to be highly prized."
The fifth on the list of top 6 property types is office buildings in Central Business Districts. It figures show that it is a "more robust growth than any other property type right now." It has marked a 3.6% increase in May, and an overall 12.1% increase since February to May- so far the greatest increase ever noted for a 3-month period.
To invest in an Industrial Warehouse also gives you a good return. This real estate property type has made it on the list of top 6 properties that one should invest this year. "Experts say that all the home building activity will likely lead to strong demand for the warehouse industry," NREI reports.
However, before you acquire any of those real estate property types, one has to remember these important things as a guiding principle. First, buy real estate property that is in very good shape. Renovation adds cost. Second, go for properties that are moderately priced with good cash flows. Location is the key. Third, buy a property type that you will own for a long time.
