Real estate is big business. Correspondingly, this is a financial sector that has the potential to yield high returns over time.

While you’ve probably heard of flipping houses and the like, as this has been popularized by numerous online programs and television shows, the real estate world doesn’t simply revolve around single-family homes.

Real estate combines many moving parts and many different structures. The truth is, many don’t fully understand the internal nature of this market until they dive headfirst into the world of real estate.

If you’re looking to invest in real estate, in any part of the world, you don’t have to limit yourself to buying a single-family dwelling. The fact is, there are several forms of real estate investments, and Whichever property type you choose, you want to make sure it has good resale value, just in case you decide to sell it in the future for a lump sum. Here, we’ll outline a few of the best real estate investments present in the market today.

Vacation Rentals

If you own a home in or (in some cases) near a popular tourist destination, you might consider using this property as an investment tool. A vacation rental can earn you twice what you’d normally receive if you leased your home to a semi-permanent tenant for a year. This is because you can charge each visitor per day much more than you would a traditional tenant.

In addition, you might also consider becoming an Airbnb host. The Airbnb platform has become increasingly popular in recent years. With the rise of the COVID-19 pandemic, these rentals have become even more popular as many travelers are choosing to stay away from crowded resorts and hotels, and opting for accommodation that feels like home.

When you list your property on Airbnb, you’re able to dictate who you rent to, and for how long. Truth be told, this could even be done with a single room in your home if you should choose to do so. If you’re curious as to how much money you could potentially earn from being an Airbnb host, check out an Airbnb income calculator to see what your profits might be.

Commercial Spaces

Commercial real estate is zoned to be used for business use. This naturally comes with a much higher price tag than residential real estate in most areas. While the process for purchasing commercial real estate is largely the same, the return can be much more lucrative in this market.

Commercial spaces include business storefronts, strip malls, restaurants, office buildings, and the like. All of these businesses pay rent to a commercial landlord, and this could be you.

Though commercial real estate often does require much higher down payments and interest for purchases, you’ll be able to charge more for rent. This will result in a much more lucrative income stream over time as you can usually require longer leases.

Land

Buying land requires the most amount of in-depth market research. But, if you know what you’re doing, you could be holding onto land worth millions of dollars that you literally paid pennies for.

Those with a great deal of capital tend to buy large tracts of land and hold onto these until a region develops. Though this strategy could take several years, if not decades, this is where the due diligence of thorough research comes into play.

In order to buy land, you really need to familiarize yourself with zoning laws, topography, commercial developments in your area, and any other land investors that might be out there.

The best strategy for some is to follow commercial development trends and see which companies are looking to expand in your area. Buying land in these areas is much more likely to net your return in a timely manner.

While the real estate world has had its share of ups and downs over the past several decades, the return that you can make off of a sound investment is worth all of the time and money you’ll spend in the long run. 

Remember, when it comes to investing in real estate, no matter what form it is, it’s all about location, location, location.