Property is something for which a particular individual or a group of individuals has exclusive rights. There are three main types of property:
*intellectual property (rights over discoveries and inventions);
*personal property (physical possessions except land);
*real property (land)
The last one is the thing that deals with
investment property. Real property is an official term mostly used in Anglo-American judicial world; sometimes you can meet heritable property in Scotland; immovable property in Canada, United States of America, Cyprus, most of Europe including Russia, and other countries, and immobilier in France. Commercial real estate includes a wide range of property types, including office buildings, apartments, shops and malls, warehouses, and research-and-development or research-laboratory properties. Many investors believe hotels to be commercial investment property. In any case, don't forget about the
inspection.
Tip: "niche" real properties are profitable for investors now. They embrace apartment properties for students, buildings for medical services, apartment complexes for elderly people. They are considered to produce income in different forms.
A part of investors has begun to regard infrastructure as a potential investment property. It can be social or transportation types of infrastructure, and spheres that have something to do with real estate.
Investments are money that one deposits hoping to receive more in future. There are different types of investments; much depends on the risk level. The types of investments in properties:
* "core" properties - an internal rate of return less than 10%;
* "core-plus"- an internal rate of return 10% to 13%;
* "value-added" category - internal rates of return of 14% to 17%;
* "opportunistic" category - an internal rate of return of 18% and more.
To receive a property, the investor, unlike in other cases,
buys it. In such situation he/she is a buyer. Investment property is bought for holding or leasing; such investments are rather beneficial under favorable conditions at the market.
Browse our site for more information on investment property or enlarge your knowledge with this
property management guide.
