Characteristics Of Real Estate
Characteristics Of Real Estate
Real estate is land consisting of the structures and land on it, and its accompanying natural resources including water, plants or minerals; immovable property of that nature; an additional interest in the object of real estate, buildings or real property in general. It includes both residential and commercial properties. The term’real estate’ is sometimes used interchangeably with ‘land’. Real estate brokers deal in the buying and selling of real estate and are involved in brokering deals for financing and sale of real estate properties.
There are four types of real property: land, housing, constructions on land and permanently attached objects. Land includes everything upon which a building may be built, such as woods, undeveloped land, undeveloped farm land, etc. Housing is the building itself with all its accompanying structures and features. Constructions on land consist of apartment buildings, townhouses, condominiums, row houses, multi-family dwellings, etc. Permit to build or modify permanently attached object is called an easement.
One of the factors influencing the value of real estate is its location. Location, or land value, denotes the worth of a plot of land as against the surrounding streets and roads. While real estate agents can assist buyers in finding a property that meets their needs, they cannot assist sellers in determining the value of land. Assessing land can be done by using mathematical formulas such as the arithmetic mean of the area of the plot and the distance between the centre of the plot and the nearest municipal airport, railway station or service road. Another important factor influencing land value is the infrastructure of a particular community, whether it be good or bad. Factors such as crime rate, educational standard, recreational facilities, medical facilities and general condition of the community add to the evaluation of the land.
The location and condition of a plot of land is an important part of determining the value of real estate, but there are other economic characteristics of land that also affect land value. These include its proximity to important structures, utility lines, schools, shopping centres, police stations, etc. Also, land that is in a desired location for businesses and other establishments will fetch higher prices. A plot of land with all these characteristics will generally increase in value over time.
On the other hand, one of the most basic economic characteristics of real estate that affects its worth is its classification as an asset class. Real estate, unlike many other classes of assets, such as inventory, commodities and personal belongings, has to be expected to appreciate in value over time. Real estate is commonly categorized as single-family residences, condominiums, townhouses, multi-family dwellings, residential lots, undeveloped lands, agricultural land, commercial land, passive income generating properties, manufacturing tangible goods, infrastructure improvement properties, etc. All these properties belong to one of the different types of real estate assets. Condos, townhouses, multi-family dwellings, and industrial parcels may have varying market values depending on their location, construction, design, and amenities. Also, depending on prevailing market conditions, the price of a real estate property may change from time to time.
As more people are now looking for ways to invest money in order to make money, the real estate industry has been hit by the increased demand. Also, many people are now taking on the job of property management in order to help owners manage their real estate assets efficiently. These days, the real estate industry is experiencing a lot of challenges, as the number of people opting for property management is on the rise. However, this industry is showing no sign of losing ground, and is expected to grow significantly in the coming years. As more people buy homes and settle into different communities, there is bound to be a significant growth in the number of properties for sale on the market.