The real estate industry is verse and wide. Real estate means property or natural resources within property boundaries.
The real estate industry includes the following; buildings, fixtures, roads, structures, and utility systems. It also includes air rights above the land and underground rights below the land. Having property rights, gives you a title of ownership to the stated property.
This industry tends to raise or fall depending on the economy of the state. Fluctuation in this industry does not happen as often. This is because people always need homes; businesses need office buildings and structures.
The real estate industry is classified into four categories;
Land is the basic foundation of any real estate property. It comprises of undeveloped land or vacant land or reclaimed land. Including farms and also ranches.
To increase the value and density of this type of property, as a developer you combine it with other properties called assembly. This makes your property easier to sell.
Land gives you ownership rights inform of a title deed, which entitles you to the natural resources on the land property. Having land as an asset is an advantage because it does not depreciate in value. Land property always increases value with time, thus qualifies as a fixed asset.
Residential real estate is the most known of the four types of real estate. It comprises of housing for people; individuals, groups of people or families. It comprises of either new construction or resale homes.
There include structures of living arrangements within the residential properties. These include the homes, condominiums, townhouses, mobile homes, and vacation rentals.
As a residential real estate potential owner, it is advisable to use mortgage to help you to finance for the property. A mortgage is loan given by the bank for the purpose of buying a home.
Commercial properties are used for business purposes. They include buildings like shopping malls, office buildings, restaurants and hotels, parking lots and education buildings.
Some apartments are considered commercial properties even though they are used as residential. This is because when the owner of the apartment decides to use the apartment building for business purposes, it changes from a residential to a commercial property.
Industrial real estate is based on manufacturing and production industrial purposes. This category of real estate involves creation of goods or products.
Industrial real estate properties include factories, mechanical productions facilities, research and development buildings, logistics facilities, and warehouses.
Whereas commercial real estate property is used for distribution of goods/products, industrial real estate manufactures and produces goods and services.
This is a Major Contributor of a Country’s Economy.
The real estate as mentioned earlier, involves production, buying and selling of your real estate property. It is wise for you to invest in a real estate property as an acquired asset.
You have to be updated of the trends and how and the real estate fairs in the market. You don’t want to invest in it and at that time it is at the risk of crashing.
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