For investors seeking security, income and appreciation there is little that can compete with well-selected real estate. To be sure, there is risk in every venture, every business and in every property investment.
For those completely risk-averse seeking income, there are the sovereign bonds of great nations, such as Germany or the US—although returns are often low, or even below the rate of inflation.
Bonds of lesser rank, such corporate bonds graded by a credit-rating agency, can offer higher yields, but with also greater risks.
And for those seeking for large and rapid appreciation, Wall Street or the private equity markets offer a variety of opportunities, with many putative reward-profiles but also with risks—risks that include total loss (or even negative returns, for those inclined to play certain options or other derivatives markets).
So, for investors looking for the best real-world mix of security, appreciation and income, there are few asset classes, if any, can compete with properly selected real estate assets.
In recent times, the seven types of property have opened up to investors of all ranks, through convenient and low-costs platforms such as real estate investment trusts (REITs), or publicly traded real-estate companies, or crowdfunded and syndicated private equity real estate offerings. No longer is the individual investor limited to a single-family house, a small apartment building, or a stretch of ranch land.
There is another excellent reason to invest in property: While true geniuses, such as a Steve Jobs or Elon Muck might rarely create a tech empire, many great real estate fortunes have been built though diligent and sustained effort by steady, dedicated investors.
So, it behooves the investing public know a little more about each property class.