What is Income Property? Investment Property? Which is Best in 2009?

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Income-investment properties will vary from commercial office buildings to retail centers that generate income on a monthly basis. Income properties are often thought to be apartments and other rental properties, although these are also considered investment properties.

The key to all these forms of properties has to do, to a degree, with the investor/owner/buyer’s goals. Office buildings and retail centers generally call for a higher degree of sophistication on the part of the buyer, compared to the more traditional income-investment properties.

Income properties such as apartments have more demanding maintenance and management requirements than does a strip retail center. Apartment owners may choose to hire a management company to assist in management, but that will add to their overall expenses.

With income-investment properties, the key is to address the needs and desires of the buyer, then find the property that best fits that model. The more traditional commercial real estate is often the only kind of investment property that a prospective buyer considers, such as an apartment building or complex. But there are other forms of income-investment properties that are attractive to some investors.

Commercial real estate in Redding has maintained a more active market condition even during the residential slowdown. Depending on the type of commercial property and the use of the specific property, land values have remained constant or have even increased in value.

Where there is a demand, such as in warehouse space, prices have gone up. In the case of office and retail, depending on the location, prices have remained steady.

With convenience stores, which may or may not include the land, the values have continued to go up if the business opportunity is there. With self-storage and mini-storage buildings, the overall shortage  has caused good-value properties to be sought after, for the most part. Mobile home parks, especially if they have maintained good rental rates, have seen their value go up in the past few years. With self-storage and mobile home parks, it becomes an issue of supply and demand to assess the value. Many owners hold onto these particular investments for some time.

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<p><em><strong><em><strong>Ron Largent is a Realtor, business owner and longtime Redding resident. He can be reached at <a href=ronlargent@yahoo.com or ronlargent.yourkwagent.com.

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is a Realtor, business owner and longtime Redding resident. He can be reached at ronlargent@yahoo.com or ronlargent.yourkwagent.com.
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