Investing in Real Estate
Real estate is real property consisting of the structures and land on it, plus its accompanying natural resources like water, plants or minerals; and its underlying immovable assets like buildings, residences or even livestock; an individual’s right to enjoy the benefits of his investment. A few typical properties are residential real estate consisting of single-family dwellings, condominiums and town homes, commercial real estate consisting of apartment buildings, office buildings, and retail real estate made up of warehouses, retail stores, motels, and other structures used for business operations. The latter types have varying rates depending on a variety of factors like location, condition, size, accessibility, and other physical factors. Real estate investments also include the money invested on the improvement of real estate, whether by the individual or by a real estate firm.
While investing on real estate, there are several main types, and these main types generally depend on the location and the purpose for which the property is being purchased. One type of real estate investment is residential real estate. This type is usually meant for investing the individual’s own personal use, but it can also be bought to act as a source of income for the owner. Real estate investment properties come in three main categories – primary residential real estate, secondary residential real estate and mixed residential real estate. The main difference between primary and secondary real estate is the ownership rights, and the type of ownership rights each type has (owner-occupied, landlord-occupied, cooperative real estate, etc. ).
Investing in real estate can also include buying business real property (which includes retail land), working capital loans for businesses, raw land or development land, manufacturing real estate and other tangible assets. Commercial real estate is one of the largest types of real estate, and involves a large number of subtypes. Some of these subtypes are retail real estate, office space and industrial real estate, industrial land, manufacturing real estate and other types of commercial real estate. Some businesses also incorporate part of their business property in the form of leasing office space or manufacturing space.