WHAT IS REAL ESTATE?
“Real Estate is a form of Real Property. Real Estate is a land along with which any permanent Enhancement are attached to the land, whether manmade or natural. Manmade includes buildings, homes, fences and bridges etc. Natural includes water, trees and minerals, etc”.
It differs from personal properties such as vehicles, boats, jewelry, furniture and farm equipment’s which are not permanently attached to the land. Real estate can include property such as air rights above the land and underground rights below the land. As a business term real estate also refers to buying, producing and selling properties.
Your home is a real estate but so is a vacant land you might own. Real estate can be a skyscraper in any metropolitan city or a patch of unimproved desert land that can’t be built upon.
Types of Real Estate:
There are various types of real estate, with a unique purpose and utility. The main categories are:
Land: Land is the baseline for all types of real property. Land includes working farms, vacant lots and ranches. The subcategories in vacant land includes early development or reuse, undeveloped, subdivision and site assembly. Developers acquire the land and combine it with other properties so they can increase the density and value of the property.
Residential: Residential real estate includes both resale homes and new constructions and is the asset class that most people are familiar with. One of the most common categories is single family homes, but there are also co-ops, condominiums, duplexes, townhouses, triple-deckers, high value homes, vacation homes and generational homes.
Commercial: Commercial property refers to buildings and lands that are used by businesses to carry out their purposes. This includes strip malls, shopping centers, educational buildings, medical buildings, offices and restaurant’s/hotels. Apartments are often considered as commercial, even though they’re used for residence, most of the time they are owned to produce income.
Industrial: Industrial real estate refers to buildings and lands that are used by industrial businesses. Industrial real estate includes manufacturing property, buildings as well as warehouses. These buildings can be used for production, storage, research and distribution of goods. The buildings which are used for distribution of goods are considered as commercial real estate. The classification is important because construction, zoning and sales can be handled differently for this type of property.
How Real Estate Works:
Real estate involves numerous facets because it doesn’t simply exist. It can segue from unimproved to improved. It can be sold or purchased. It might be owned by a corporate entity, government, or by a private party. But certain things can have a direct impact on the economy, consistent improvement of land, and the individual and entities that facilitate those transfer of ownership.