Investing in Real Estate Investing – Understanding Four Types of Real Estate Investing
Real estate is real property consisting of the structures and land on it, and its accompanying natural resources like water, plants or minerals; immovable personal property of this kind; a lien on the same, buildings or houses in general. It may also refer to personal real estate held by a principal as security for loans. Real estate market refers to the segment of the real estate market involving commercial real estate, residential real estate, agricultural real estate, and industrial real estate. Real estate brokers play an important role in the real estate market as they help investors and lenders find suitable property, enabling them to make the best possible investment. They help you find the best investment properties, negotiating the best price and providing necessary guidance on how to manage your investment funds. They also help you get financing for your investment properties.
Investing in real estate can be a lucrative option as it’s not just a matter of buying a house or land. You can purchase property for any purpose-such as a residential house, an office building, a shopping mall, a farm or a lodge-and turn them into an investing asset class. There are four main types of property that are generally included in the category of real estate. These include immovable personal property, immovable real property, tangible assets and intangible assets. All these categories are linked to the structure of the economy, with immovable personal property being the primary driver of the economy while tangible assets and intangible assets are the secondary drivers.
Immovable personal property includes such examples as jewelry, art, gold coins, art reproductions, bank accounts, automobiles, business interests and land properties. Immovable real property can include real estate, buildings, and structures. Under this category of real estate, the most common examples include retail shops, office buildings, warehouses, apartment complexes, condominiums, and residential properties. On the other hand, intangible property involves the various intangible assets like franchises, brands, information technology, trademarks and trade names. In addition, tangible assets include the following: oil and gas, mining and logging, metal and coal production, electricity, agricultural products, water treatment services, personal and office furniture, and tourism and commuting equipment.
In order to understand the economic characteristics of real estate, you must first understand its four main categories. Real estate can be classified into three main categories. These include residential properties, commercial properties, and industrial real estate. The different types of real estate can either be used to buy residential land or to build a residential house. However, they can also be used to develop commercial property or an industrial building.
Among the main types of real estate, residential real estate is the most widely used category of real estate. As the name itself implies, this category refers to residential property that is intended to be used by people living in a single residence. The subcategories of residential real estate can include apartments, condominiums, townhouses, row houses, cottages, bungalows, and condominiums, etc. Residential real estate deals mostly with the acquisition of land for developing a single residential property. But this is not the entire extent of its uses.
Commercial real estate investing involves the purchase of land for establishing businesses or conducting businesses. Business deals can either be simple one-off purchases or complex ones that involve several aspects. These include development of a manufacturing unit, expansion of a manufacturing unit, joint ventures, mergers and acquisitions, etc. So the complete extent of the uses of real estate can be understood by considering these four types of properties in its real estate investing portfolio.