Real estate investment has become a common and good form of saving money, which has various forms and types. Since this is by far the safest form of investment more and more people are getting drawn towards it; but in order to use your money wisely and correctly you first need to understand the various categories of this form of investment and accordingly make your choice.
The real estate investment trusts or REITs, vacation rental property, raw land investments, rental property and real estate partnerships are all types of investments that are pertaining to the real estate. BrianFerdinand is a financial consultant and entrepreneur based in New York who has been acquiring experience in this field for the past 15 years and has extensive knowledge about the vacation rentals and the wide range of scope that is available in real estate investments.
Each variety of investment in the real estate has its distinct advantages and disadvantages, which are as follows:
- REITs – these are companies that deal in everything related to property, i.e. buying, selling, managing and developing. They function like a security and sells just like stock on all the major exchanges. The liquidity of this is much more in comparison to the other forms of investment, they provide higher yield and get quite an amount of exemption from tax. Investment in these can be done by purchasing shares from any open exchange.
- Real Estate Partnership – as the name suggests, this form of investment involves two or more partners who pool in their funds to have more resources and thereby increased profits. The nature of investment in this is a joint one.
- Vacation Rental Property – this is a long term investment and the income comes in the form of rentals. One major advantage of this that it does not matter how many years you have been drawing rentals from this property you can still sell it at any point of time and get is value. The downside of it is that any damage or defect caused to the property is considered to be the responsibility of the landlord and so the entire brunt of the repairs and maintenance falls in your lap. BrianFerdinand, the COO of Vacation Rentals LLC has been ably leading this firm since he joined it in 2015. This LLC provides the best possible information about vacation rentals most appropriate for your budget and requirements.
- Rental Property – this is probably one of the best real estate investments, for long term as it provides a regular income unlike the vacation rental which may be vacant during the off season. In this case, the amount that you may have invested is sure to be recovered through the monthly rents. Added to this, you will notice that you are getting much more than what you had originally invested.
- Raw Land real estate investment- is the investment in bare land; you could either gain from the resources of this property or develop it and then derive profits out of it.
Whatever is your category of investment in real estate, there is hardly any chance of loss in it and this is what is making this particular genre of investment so popular.