Real Estate is defined as a property or any permanent building, like home and/or with development attached to it, whether it is natural or man-made.
It differs from a property owned personally in that it is real and not directly attached to the land in question, such as boats, furniture, farm equipment, vehicles and jewelry.
Real estate is Real Estate has proved to be one of the major means of earning income; however, it has to do with a lot of patience and strategizing. Investing in real estate includes buying the property or land for rent. real estate neighborhood report comprises the land, any additional structure made by man or nature such as houses or structures.
Types of Real Estate
There are 5 types of real estate and they are:
- Residential Real estate – this is any property utilized for residential reasons, these reasons include single-family houses, condos, family residents and so many more.
- Commercial real estate – this is any possession that is used majorly for business eg., stations, hospitals, hotels, shopping complexes, theaters and even restaurants.
- Industrial real estate – this includes any building or possession that is used for industrialisation eg., production, manufacturing, distribution, storage, research and development.
- Raw land – This seems to be the major one many advertise today, it includes undeveloped properties, land that is not in use or vacant lands, and lands used for agricultural purposes eg., ranches.
- Special purpose – this consists of buildings used by the general public like cemeteries, libraries, parks, churches or mosques, schools and government structures.
Pros and Cons:
Real estate might look easy, especially when those who are into it begin to talk about it.
It has some Pros and Cons attached to it.
- A variety in the portfolio
- Offers capital preference
- Offers a continual profit
- Can be purchased at leverage
- It is usually an illiquid
- It is highly affected by local factors
- It usually requires active supervision and skill
- It requires a big early expense
These are usually taken into account when venturing into real estate, either as an agent or an investor.