Understanding Types of Niche Real Estate

Niche real estate includes any specialized sector of the real estate market that is defined either by the potential client or property type and can be categorized by defining a particular segment of potential buyers and catering to their priorities and financial situation.

Lifestyle considerations are taken to be the primary factor in niche real estate. This means that property must have some special features such as ease of access to certain activities, surrounding environment, valuable design, etc. and provide the buyer with more than an opportunity for housing and investment. Therefore, niche real estate includes income property, condos, garden real estate, equestrian property, farm property, vacation property, golf property, golf course redevelopment, beach houses, waterfront homes, and luxury homes.

What Is An Income Property?

Income property is a property that can be bought or developed for the purposes of earning income through renting, leasing of price appreciation. Income property can be both residential and commercial. Residential property is also known as ’’non-owner occupied’’ and as this type of income property is considered by lenders to involve a higher risk, and a mortgage for it may carry a higher interest rate than a mortgage for ’’owner-occupied’’ income property.

What Does Garden Real Estate Include?

Garden real estate is a type of real estate property that includes a house with a particularly noteworthy garden and garden design that contributes to the overall value of the property and ultimately affects the sales price. Garden real estate can be divided into three categories. The first and most prominent category includes property with gardens designed by well-known landscape designers. Property with gardens that were designed by architects or professional landscape designers makes up the second category, while the property with large gardens of extraordinary beauty designed by their previous owners falls into the third category.

Condos

Condominium or in short condo is a single housing unit in a multi-unit building that is individually owned. Although the owner holds a sole title to the unit, he owns a land and common property including roof, halls, stairs, elevators, etc. jointly with the owners of other units and shares with them the expenses associated with the upkeeping of the common property. The owner of a unit pays property taxes on his unit and may rent, mortgage, or sell the unit just like any other type of personal property. Appart from condominiums in residential real estate settings, there are condominiums in commercial real estate settings as well such as office condominiums, and in other residential forms such as condominium townhouses.

Equestrian, Farm and Vacation Property

Equestrian property, also called ’’horse community’’ is a facilitated and well-planned community where nearby facilities and trails cater to the needs of all types of horses and horse owners with exceptional settings where equines can be raised and trained. Stables and open areas may be either shared or private with a resident staff of grooms, farriers, and veterinarians. Hangars, fueling stations, and maintenance facilities can also be incorporated into the equestrian community.

Farm property is an area of land that includes arable land used for growing crops together with home and surrounding facilities used for keeping animals and maintenance.

Vacation property is the best known and most diverse niche real estate group. This class of property can be broken down into smaller segments of the market defined by season of occupancy, locale and associated activity. Vacation property can be owned or rented by vacationers through agencies, and it usually includes beachfront condominiums, lakeside fishing retreats, mountain cottages, etc.

Golf Property and Golf Course Redevelopment

Golf property is a segment of niche real estate that includes golf courses with attached communities that can be used either for residential or vacation purposes. The overall value of golf property may increase if the golf course was designed by a well-known golf course designer.

Golf course redevelopment or conversion involves purchasing of failed golf courses by investors and selling the land to the building companies that can further be transformed into a residential property and sold to residential home buyers.

Waterfront, Beach and Luxury Homes

Waterfront homes are a real estate property abutting a body of water such as a river, lake, ocean or canal. Water frontage is likely to boost the value of homes and make them worth more than double of the value of homes overall.

Beach house is a property located on a beach or within a mile from a beach and it can be used for either residential or vacation purposes. It can serve as a second home or it can be rented through an agency.  

Luxury homes are a unique and exclusive property that has the access to luxury activities and proximity to other luxury homes. The exact size, style, and design that embodies a luxury home cannot be accurately defined as it depends on the individual taste of potential buyers. Homes with a storied history, extraordinary views, remarkable architecture, as well as beautiful interior and exterior design can also be included in the category of luxury homes.

 

References:

*wiseGeek clear answers for common questions – What Is Niche Real Estate? , vacation property, equestrian property, golf propertyWhat Is Garden Real Estate?
*Investopedia – Tips for Buying a Luxury HomeIncome Property
*U.S. News & World Report – How  To Define Luxury Real Estate in Today’s Market
*Academic Dictionaries and Encyclopedias - Income property
*FindLaw – Condominiums and Cooperatives
*Real Estate Terminology - Condominium
*BusinessDictionary - Condominium
*InvestorWords - Waterfront property
* Zillow Research –What Is Waterfront Worth?
*Cambridge Dictionary – Farm
*Dictionary.com - Farm

 

Published by Gary Seoul on 10/3/2017.