Real Estate

Real Estate As An Investment

Real estate is the buying and selling of property including buildings, plots or parts of it and its accompanying assets including water, plants or minerals; immovable property of that nature; a lien vested upon the underlying object of real estate, buildings or residential real estate in general. Real estate investments depend upon the prices prevailing in the market and the condition of the various real estates. Real estate investments can be of different types i.e. Real estate residential investment, commercial Real estate investment, industrial, Real estate investment. Real estate investments also include financing Real estate investment through mortgage, loans, co-signed loan, recourse and pledge Real estate investment deals.

In order to invest in Real Estate you need to decide what kind of Real Estate Investment you are interested in. You can invest your money in either residential Real Estate Investment Trust or Commercial Real Estate Investment Trust. In order to invest in Commercial Real Estate Investment Trust, you need to form a partnership. The partnership must be formed by a director and shareholders named in the document. The Commercial Real Estate Investment Trust offers the investor a fixed return along with certain tax advantages.

There are different types of real estate including single family homes, apartment buildings, condominiums, town houses, multiple unit dwellings, row houses, agricultural lands, etc. A real property comprises of the building itself and its attached accessories including the houses, apartment units, etc. These properties come under different categories like fixed income properties, income producing properties, etc. A major portion of these properties comes under the category of income producing properties, which include agricultural land, manufacturing land, mining property and mineral rights.

The primary economic characteristics of Real Estate include the price, amount and reliability of the particular asset. These qualities are determined by various economic factors such as location, accessibility, state of repair, quality, value of the land and other amenities and utilities, and many more. The land’s location and accessibility are among the most important characteristics that influence the price of the property. For instance, if a person wants to buy a residential property in a remote area, it would cost him a lot more than that of a person who intends to buy a similar property located in a relatively more urbanized area. The state of repair of the land determines its price. Similarly, the quality of the land affects its price.

Among the many economic characteristics of Real Estate, one of the main types are the Utility and Leasehold Property. The main types of utility and leasehold properties are the mineral rights, mineral deposits, oil and gas, etc. The main characteristics of these types of properties include their reliability, high price, low upkeep cost and flexibility.

You have learned about some of the main characteristics of Real Estate, including the types that determine its market price. There are many other characteristics that also affect the price of a Real Estate. For instance, the condition and safety of the land or building on which the Real Estate is built largely influences its price. Other main factors that determine the price of a Real Estate include its location, quality, usability, etc. So, you now have a clear idea about the different types of Real Estate.

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