For some people, real estate pertains only to the house, structure, or building within a property. This is a common misconception. Real estate pertains to the land and the structure or improvements within that said piece of land. It is not limited to the buildings constructed within the property. Real estate could include roads, water, trees, and natural minerals. There are several types of real estate you could choose from. This includes land, residential, commercial, industrial properties, and special use. According to Investopedia, there are three physical characteristics and four economic characteristics of real estate. Physical characteristics involve immobility, indestructibility, and uniqueness white its economic characteristics are scarcity, improvements, the permanence of investments, and location or area preference.
Do not be confused with terms such as real property and personal property. They mean two different things. Real property refers to lands, buildings, and constructions within the said land. Real property is immovable. One could argue that trees or plants are movable but if they are attached to a land, they are considered real property. Personal properties, on one hand, could mean tangible or intangible. This could be the clothes you own, the vehicle you drive, your gadgets, and other personal devices. Stock, savings, licenses, trademarks, and insurance are also considered personal properties.
There are plenty of career opportunities in the real estate industry. You could be a real estate agent liaising between the company and possible buyers. You can also be a loan or mortgage underwriter. This is for those who are interested in analyzing the credit standing of the customers. You could be a property developer, in charge of creating construction and opportunities on underdeveloped land. A building inspector is also an option. A real estate analyst for those who are interested in the financial side of the business and love to read graphs and data is ideal. You could also be a legal advisor with a specialization in real estate properties.
Land properties could either be occupied or vacant, fully developed or under. This includes water and even air above the land. In most cases, land properties are vacant or underdeveloped, the real estate companies or developers, therefore, increase the market value of the land by building structures within the property. Residential properties pertain to the land and the structure which houses individuals or families. Apartments, condominiums, single-detached houses, duplex townhouses, apartelle are just some examples of residential real estate. Commercial properties, on the other hand, refer to the areas used to construct hotels, corporate offices, and car parks. Industrials refer to the land used to house buildings for production and manufacturing. It is where huge warehouses or research facilities are built. The special use lands are those used as farms and unused land.
According to Corporate Finance Institute, the following are some examples of real estate properties: single-family dwelling, multi-family dwelling, attached, apartment, multi-family house, condominium, portable house, mobile home, villa, and huts.
Just like any form of investment, there is always a risk factor involved. One should not dive into any investment without prior knowledge about it. Otherwise, your hard-earned money could burn in the process. If you are to invest in real estate property or purchase a house, there are several factors you should consider apart from your budget. You need to check its marketability in the long term. Will your property increase in value over the years? Or will you spend your money paying the maintenance cost and property tax but the property devalues year after year?
You could invest in real estate by having it rented by someone else. Every month you can expect payment from your tenants. You could also spend money on trading and buying real estate stocks. This is another form of investing. But be careful in following trends, you should understand how the stock market works and be able to invest an amount you are willing to lose at the end.
Buying and selling houses is also another viable option. Search for properties that you could purchase at a low price, develop the property to attract the buyers, and sell it at a margin once you are happy with the home improvement. Whichever is your cup of tea, you just have to make sure that you have the money to invest, the time to learn about the investment, and the willingness to accept things in case things do not go as you expect them to be. But, this should not stop you from deciding to keep things moving forward.
When it comes to real property discussion, there are plenty of topics that could be covered. This could involve subjects about renting or owning a property, applying for a mortgage loan, talking to real estate agents, the sales and marketing side of the business, and many more.
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