Investment is a very important financial decision, investing in property is even more crucial since there are many factors which have to be taken into account. Today, with space being a very limited and also a very in demand commodity, buying property can turn out to be a very profitable or very expensive investment for that matter.

To ensure you find the right kind of property suited for your needs, you have to first understand the different reasons for which an investment in real estate is made.

Commercial real estate: As the name suggests, commercial investments in real estate are intended for business or small office constructions. For example, investing time, a lot of money and effort to construct a small office space or building will enable you to then sell the space for a bigger margin or even arrange for long term leases. Office spaces are a prime property since there is high demand for such spaces, more in the city. Investment in commercial real estate is one way of buying property.

Residential real estate: The most common and basic form of real estate. Putting money in the construction of a small residential complex, or even just buying a couple of apartments in the city which can be let out for rent or for a long-term lease is a profitable investment. These are different from commercial since the type of tenants who occupy these properties will normally be families or college going students who want to share the flat.

Industrial real estate: Properties like distributions center, storage units, car washes and any other kind of industrial purposes which generates sales potential from customers who might temporarily use it or lease out for a long time. There is more scope for the return on investment on any industrial property since there are multiple avenues to explore for the same property. For example if a car wash has additional services and systems like car buffing and waxing, quick tune up and more services charged separately which adds to the revenue.

Other property related investments: Residential, commercial and industrial are the property modes of investment, but there are many other avenues to venture into for investing in the real estate world since it is a profitable and booming industry.