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Investing In Real Estate: 5 Property Types For Your Portfolio

The recipe for success in the property investment game includes several key ingredients. Ultimately, though, none of the others matter if your portfolio isn’t up to scratch. Therefore, familiarizing with the options so that you can build one that is strong and diverse is a priority.

There is a long list of property types that you could consider. Over time, you may find that your portfolio contains more than five. For now, though, here are five that need your attention, and if you're interested in Disney Vacation Club (DVC) properties, you can click for DVC points charts to explore that option further.

Buy-To-Let Properties

At its best, an investment property should deliver both short and long-term rewards. With this in mind, buy-to-let is a great starting point. You can use the bank’s money to build your success and the tenant’s payments to cover your mortgage. Better still, there will be leftover cash that becomes your revenue stream. As the mortgage continues to be paid off, you will find that the value of your asset increases too.

Crucially, the speed that its value grows will almost certainly outweigh the rate of inflation.

Auction Properties

Auction properties do come with some risks. So, you probably won’t want your first experiences of real estate investment to stem from this arena. But there is no denying that foreclosure properties offer an opportunity to get a property for below the market value. Patience will be required as the legal processes involved take a long time to finalize. Still, the long-term prospects are potentially huge.

Or you could consider auctions on fixer-upper properties instead.

Multi-Unit Housing

Multi-unit housing may seem like a daunting prospect to new investors. After all, it does mean taking on several units and tenants. However, the fact that they are under one roof should mean relatively easy management. Furthermore, lenders will see your investment as a low-risk one. As such, it is probably the most accessible way to gain funding when wishing to take on multiple properties. In turn, this can aid your hopes of expanding. 

These types of investments are found in virtually all big towns and cities.

Commercial Properties

Many new investors are hesitant to invest in properties used for commercial reasons. In reality, though, they often deliver an easy solution for investors. After all, when the tenant builds a successful business, they will remain stationed at the unit for many years. Offices, stores, warehouses, and industrial units are just some of the popular examples. Crucially, you'll find units of varying sizes. So, it is a very versatile environment. 

As an investor, you may find that the level of competition is smaller too.

Overseas Properties

Entering foreign markets is another seemingly daunting prospect. However, there are plenty of destinations where property prices are increasing at a rapid rate. Better still, their affordability makes them a great choice as an entry-level solution. Thanks to modern tech, you can manage the investment without regular visits. As long as you take the time to research the legitimacy of the operation and find a good management team, you’re fine. 

When combined with the other property types mentioned, your career will get off to a flying start.

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