Why Real Estate is the Real Market

July 26, 2022by Collins0

Real estate is such an important subject to humanity. Every human being needs shelter. Every happy family needs a comfortable environment they can call home.  A home is where your joy and happiness dwell.

So I have taken my time to explain what real estate is as a field and how it is also a major force in driving the growth of the country.

What is real estate?

Real estate is defined as the land and any permanent structures, like a home, or improvements attached to the land. This includes whether natural or man-made. Property rights give a title of ownership to the land and improvements. Also natural resources such as minerals, plants, animals, water, etc.

KEY TAKEAWAYS

  • Property rights give a title of ownership to the land, improvements, and natural resources. Such as minerals, plants, animals, water, etc.
  • There are five different types of real estate which include Land, Residential, industrial, commercial and special use
  • Investing in real estate includes purchasing a home, rental property, or land.
  • Other ways you can participate in the industry.

see also: 5 Commonly asked question by new Real Estate Investors

Real estate

To have a proper understanding of real estate, you need to know that land and real property are used mutually. But there are differences.

Land is referred to as the surface of the earth’s crust and upward to the airspace above. This includes minerals and water. It is the combination of land and any other man-made form of construction, such as houses, and other kinds of building

Real property includes the land and addition to the land plus the inherent right to its ownership and usage.

Types of Real Estate

  • Residential
  • Commercial
  • Industrial
  • Land
  • Special use

These are five different types, each with a unique purpose and utility

alt +residential houses

Residential

Any type of property used for residential purposes. This type consists of housing for individuals, families, or groups of people. Within residential, there are single-family homes, apartments, condominiums, townhouses, duplexes, and multifamily residences.

Commercial

Commercial property includes land and building that are being used privately for business purposes, such as apartment buildings, gas stations, shopping malls, hotels, and medical centers.

Industrial

Industrial real estate refers to land and buildings that are used by industrial businesses for manufacturing, production, distribution, storage, transportation, logistics, and warehousing.

Land

Land is the baseline for all types of real property, which includes undeveloped property, and vacant land.

Special purpose

Property used by the public, such as cemeteries, government buildings, libraries, and schools.

Real estate economy impact

In developed countries, real Property is a major force that drives the growth of their economy. Because by providing new residential construction, a good road network, and a good environment for people to do business. All of this will also attract the interest of investors. Hence investors and analysts keep a close eye on housing stats because the numbers can provide a general sense of economic direction

Examples of Real Properties

There are different types of real property. Let’s explore specific examples

Single-family housing

Any form of home design for only one family.

alt + family house

Multi-family housing

Any group of homes designed for more than one family.

Attached

Any unit connected to another (not standing alone)

Condominium (condo)

A building with individual units owned by individual people

Detached house

Houses that can be moved on a flatbed truck

Hut

Housing is typically made of different raw materials such as bamboo, mud, and clay

Understand The Industry

The industry consists of different areas and fields for an individual to choose from. Let’s explore these different fields in the industry.

Development

Sales and marketing

Property management

Lending

Brokerage

Let’s take a look into each of these six areas of the industry in more detail

Development

Development involves purchasing land, and the construction and renovation of buildings. Also sale or lease of the finished product to end users. Developers make a profit by adding value to the land.

Sales and marketing

Sales and marketers advise clients on market conditions, prices, mortgages, legal requirements, and related matters. Organize property closings, overseeing the signing of documents and distribution of funds.

Property management

Property management helps firm with the operation, control and maintenance, and oversight of real land and physical property. This can include residential, commercial, and land.

Lending

Lenders play a major role in the industry as virtually all properties and developments use leverage (debt) to finance their business. Lenders include banks, private lenders, and government.

Brokerage

A broker is a real estate agent who continues their education and successfully receives a state real property broker license. They help to negotiate and arrange transactions. Their job is to represent either party. Also help them achieve a purchase or sale with the best possible terms.

How to Invest

Some of the most common ways to invest in real property include homeownership, investment. Also rental properties, and house flipping. One type of real property investor is a wholesaler who contracts a home with a seller, then finds an interesting party to buy it.

Several ways to earn through real estate investment are through revenue from rent or leases and appreciation of the real estate’s value. Property value is largely affected by its location. Also factors such as employment rates, the local economy, crime rates, transportation facilities, school quality, and property taxes.

Investing in real estate indirectly is done through a real estate investment trust (REIT). A company that holds a portfolio of income producing real estate.

see also: 5 Ways to Avoid Low and Over Priced Estate

Best way to finance a Real Estate Investment?

Cash

Mortgage

Private or commercial lender

What careers are common in the industry?

If you’re looking for a career in this industry, you may want to consider any of the above six arrears of the industry

Leasing Agent

Title examiner

Home inspector

Real estate appraiser

Real estate agent

Mortgage broker.

To get started, visit www.Redocinvest.com on how to start your investment journey today

 

 

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