Real Estate

What is Real Estate ?

Real estate is defined as the land & any permanent construction, like a home, or advance attached to the land, whether natural or man-made.

Real Estate Investment a form of real property. It varies from personal property, which is not permanently attached to the land, such as vehicles, boats, jewellery, furniture, and farm equipment.

• • Real estate examines real property that includes land & anything permanently attached to it or built on it, whether natural or man-made.

There are five main categories of real estate which incorporate residential, commercial, industrial, raw land, & special use.

Understanding Real Estate

The terms land, real estate, & real property are frequently used interchangeably, but there are distinctions.

Land refers to the earth’s surface down to the centre of the earth & upward to the airspace above, including the trees, minerals, & water. The physical quality of land includes its immobility, indestructibility, and individuality, where each parcel of land differs geographically.

What Are Types of Real Estate?

Residential real estate: Any property used for residential basis. Examples include single-family homes, condos, cooperatives, duplexes, townhouses, & multi family residences.

Commercial real estate: Any property used exclusively for business purposes, such as apartment complexes, gas stations, grocery stores, hospitals, hotels, offices, parking facilities, restaurants, shopping centres, stores, & auditoriums.

Industrial real estate: Any property used for produce, production, distribution, storage, & research & development.

Land: Includes undeveloped property, vacant land, & agricultural lands such as farms, orchards, ranches, and woodland.

Special purpose: Property used by the public, such as boneyard, government buildings, libraries, parks, places of worship, & schools.

How to Invest in Real Estate ?

Some of the most common ways to invest in real estate include :

Retal Estate Investor house owner ,investment or rental properties, & house flipping. One type of real estate investor is a real estate wholesaler who agrees a home with a seller, then finds an interested party to buy it. Real estate wholesalers generally find and contract distressed property but don’t do any modernization or additions.

Real estate is greatly high-flown by its location & factors such as employment rates, the local economy, crime rates, transportation facilities, school quality, municipal services, & property taxes can influence the value of the real estate.

Pros

• • Offers stable income

• • Offers capital value

• • Different Portfolio

• • Can be bought with grip

Cons

• • Determine by highly local factors

• • Requires big initial capital spending

• • May require active management & expertise

Investing in real estate indirectly is done through a real estate investment trust (REIT), a company that holds a portfolio of income-make real estate. There are several types of REITs, including equity, contract, and hybrid REITs, and are classified based on how their shares are bought and sold, such as publicly-traded REITs, public non-traded REITs, & private REITs.

The most popular way to invest in a REIT is to buy shares that are publicly traded on an exchange. The shares trade like any other security traded on an exchange such as stocks & makes REITs very liquid and transparent.

What We Like

• • Liquidity

• • Diversification

• • Steady dividends

• • Risk-adjusted returns

What We Don’t Like

• • Low growth/low capital appreciation

• • Not tax-advantaged

• • Subject to market risk

• • High fees