Real estate includes the tangible property placed for sale, whether for personal use or for economic gain, and the fixtures and equipment associated with it. Real estate is land consisting of the actual buildings and land on it, and its accompanying natural resources like rocks, plants or water; immovable real estate, that is, property that can be moved from one place to another. In legal terms, real estate also includes “all realty interests existing” which include “real estate owned.” Real estate, wherever it may be located, is a highly lucrative business, both in the domestic market as well as in the international market. The laws governing real estate are different in different countries and different states within America, and buyers and sellers need to be aware of these rules before entering into any contract.
There are several options available for real estate investment, and they include developing land by constructing buildings or buying pieces of land that have the potential to increase the value of the real estate. Developing land requires financial backing from a bank, and that kind of capital needs to be stored in some other form of income producing venture until it is ready to invest in building construction. Developing real estate involves large sums of money, and investors should therefore have a steady flow of funds ready to go into the business. Buyers may buy a piece of vacant land, renovate it, and sell it for a profit, but they should first secure the land from weeds and other pests by paying for environmental remediation.
The second example includes the purchase of homes, apartments and other personal property. Personal property is land that you or your beneficiaries may use according to your will. Most real estate investment firms specialize in the purchase of residential real property and do not deal with businesses, such as apartment complexes. However, there are some examples of real property that may be purchased for resale purposes. Some examples include land, houses, apartment buildings and even vacant land.
The third example is buying vacant land permanently attached to a piece of property. This is another way to increase the value of real estate without having to worry about the financing or finding a willing buyer. Permanent attachment to real estate occurs when the owner has no other option but to build or purchase a house on the property. One example of this type of situation includes a piece of vacant land that was previously used as a horse farm. After the owners decided to retire from the business, they left the land with no other option but to build a house on it permanently attached to the property.
The four main categories of Real Estate include: land, building, permanent attachments and personal property. Within each category there are many subcategories. The four main categories of Real Estate include: single family dwellings, multi-family dwellings and town homes. Some Real Estate examples include: farms, industrial sites, industrial parks, strip malls and vacant lots. There are many reasons why people choose to invest in Real Estate, but regardless of the reason behind the investment there are four main categories to consider: financing, location, taxes and upkeep.
Residential Real Estate includes new buildings, condos, town homes, mobile homes, manufactured homes, and single-family dwellings (also called residential properties). Commercial Real Estate includes new office buildings, warehouses, shopping malls and strip malls. Industrial Real Estate includes warehouses, garages, factories and manufacturing plants. The four types of Real Estate are very diverse and provide many opportunities for investors to be involved.