The Real Estate Business In Kenya

Know The 4 Types Of Real Estate!

A layman understands real estate as a property that one can invest in! But did you know that there are 4 types of investments?

1. Residential Real Estate –  some of the examples of this include condominium, apartment, penthouse, duplex, townhouse etc that can be new or for resale. It consists of a single-family unit or multifamily unit that is used for purposes that are not business-related, mainly for staying. When investing in residential real estate you should be looking at the income through rental!

2. Commercial Real Estate – some of the examples of this include shopping malls, schools, hospitals, hotels, offices etc. When thinking of investing in commercial you should think about leasing offices out to companies or small businesses who will pay rent for using your property. The leases can be multi-year leases which entail stability in cash flow and helps protect you the owner from all the times when rental rates drop. Be careful if the rent is to increase then you may miss out the opportunity if you are tied up!

3. Industrial Real Estate – This includes manufacturing property as well as industrial warehouses which you can lease to firms over the long term, for purposes of storage, production, distribution of products in order to generate income.

4. Land – This is empty land that can be used for agricultural purposes for example. You can lease your land to farmers for e.g. so they can use it for farming.