Real estate is real property consisting of the actual buildings and land on it, and its accompanying natural resources like water, plants or minerals; immovable land devoted to a single use; an exclusive interest vested in the real property, buildings, or housing in general, generally, for a particular use. Real estate comprises many types of transactions, the most common of which are: the purchase and sale of property; lease purchase; mortgage and deed of trust. Real estate deals typically include the purchase and sale of commercial and residential properties as well as land and structures designed for certain businesses like office buildings, warehouses, shopping malls and apartments. Real estate investments can either be residential or commercial, and can also include land that is used commercially as a grazing ground, golf course, or recreational area. Real estate investors can either buy and hold the property outright as an investment property or they can finance the purchase of real estate by securing various loan facilities from banks and other lending institutions.
In the context of real estate investments, land is bought to be used as a source of producing money, and this is usually done through developing residential or commercial property. The development process involves the negotiation and acquisition of land, the construction of buildings and roads and infrastructure, and eventually the sale or transfer of ownership. Most real estate investments take so long because there is a lot of groundwork that is required before you can make any profits. Developers usually buy cheap plots of land at a good price, renovate them and make them into attractive residential or commercial buildings, and then sell them off at higher prices. Sometimes they may hold onto these properties for a period of three years and use the money made through resale and other means to buy more land or develop even more buildings.
A real estate investment refers to the act of buying a valuable piece of land so that you can make use of it in order to earn profits. One common way in which people invest in real estate is by buying a piece of rental property and then renting it out. You can either buy the land yourself and develop it yourself, or else you can hire a developer who will do this for you. Even if you decide to buy a piece of rental property and rent it out, you can still make a profit, provided you get good tenants.
If you want to purchase real property and later on want to sell it off, you can permanently attach it to the plot of land with the help of various property developments. Some of the examples of permanently attached properties are plots of land that are adjacent to luxury hotels, gated communities, and golf courses. The main advantage of having your property attached to your plot of land is that you will be able to get a better rate for your investment. Permanent attachment also allows you to develop your real estate without any restrictions. But apart from this, if you are looking for a bigger investment, then you can opt for constructing multiple buildings in one place.
Apart from Permanent Attached Properties, there are three other main categories of Real Estate. These include Special Economic Zones, Developmental Areas and Special Economic Area. In this article, I have discussed briefly the details about all these main categories of Real Estate.
Special Economic Zones are generally created for the economic development of a particular region. This means that the rates of properties will always be economically beneficial for the residents of that region. Other main categories of Real Estate include: Residential Real Estate, Commercial Real Estate, Industrial Real Estate, Structural Real Estate Receivables. In order to keep you abreast with all the latest trends in the Real Estate industry, you can subscribe to my Real Estate Digest by visiting my website.