4 Types of Property in Real Estate
Property investment is recognized as one of the most popular instruments for creating long-term wealth. Investors can rent their property out to get passive income with a promising return on investment (ROI). In this article, we will explore real estate examples you can consider for investment.
Types of Property in Real Estate
There are 4 types of property in real estate, as follows:
- Residential Property
- Commercial Property
- Industrial Property
- Land Property
Each of these types of property has its characteristics. It is crucial to understand all the types and examples of real estate, so you can choose what property you want to buy wisely and suit your property investment goals.
You will find out further about 4 types of property, as discussed below.
Residential Property
Residential property is the most popular type of property for investors and provides you a place to reside. Investing in residential property enables you to enjoy owning a home and growing a feeling of stability. More than that, you also can generate income through residential property by renting it out.
Here are the examples of the most popular residential property:
1. Villa
Villa is a building that looks similar to an upper-class or luxury landed house. It provides a garden, terrace, and external patio. Sometimes, it also provides a private pool with a beautiful panorama of a beach, river, forest, or ricefield.
A villa is usually located in a suburban area and independent of its surroundings. Besides that, the architectural style is also a factor that makes villas more “worthy” than ordinary houses. Several examples of villa architecture styles are modern, contemporary, classic, Balinese style, etc.
Villa is the most popular option for investors who want to start property investment in Bali. With the high potential of international tourists and beautiful sceneries, Bali promises a high return on investment.
If you want to have a villa in Bali, whether through leasehold or Hak Guna Bangunan title, cooperating with a trustworthy property agency in Bali is highly recommended to make your buying villa process seamless.
2. Landed House
Landed house is the second option for you who want to invest in residential property. This property you can use to live with your family rent out as rumah kontrakan or rent a house for the local/domestic market.
3. Apartment
Living in apartments has been increasing in Indonesia in the past few years. Apartments are often chosen by people who live in big cities that difficult to find landed houses. Apartments also offer strategic locations and are near major arterial roads.
4. SOHO (Small Office Home Office)
SOHO (Small Office Home Office) is a hybrid apartment that you can utilize for living and commercial at the same time. This type of residential property is common in Jakarta.
Commercial Property
The second type of property in real estate is commercial property, which entails higher initial investment, but also promises higher profit. If you want to invest in commercial property, securing a mortgage is essential. Seeking professional assistance can facilitate a smoother execution of your property investment plans.
Properties that are considered commercial property must built on commercial land (red zone).
Examples of commercial property are:
- Retail store.
- Industry facilities.
- Offices.
- Shopping centre.
Industrial Property
Industrial property is one of the types of property you can consider to start a property investment. The property is typically built for manufacturing and warehousing purposes. If you want to consider industrial property, you need to understand and fulfil some legal requirements.
Examples of industrial property are warehouses, factories, logistic centres, and other production facilities.
Land Property
Engaging in land investment offers different prospects for people who want to secure financially in the future. Land is also safe from damage, theft, and maintenance issues.
