If one has to define real estate, they can call it as the property which consists of buildings on a piece of land, which also includes the natural resources too. The word real estate stands for real or physical property.
Hirsh Mohindra, has said that “Real estate is actually one of the tangible assets available to us”. If one has to draw some examples of real estate, following things can be listed down – land, buildings, etc.
Where, real estate is said to be a tangible asset, personal property on the same hand enlists for both tangible and intangible asset, which can include stuff like investments, furniture, dishwasher, etc. Keeping the points of tangible and intangible in mind Hirsh Mohindra has stated that “Real property and personal property are two different things and should be no mistaken as same”.
The business for real estate, includes buying, producing and selling real estate. The market here, can turn out to be advantageous or disadvantageous. “The investments made in this market can be either profitable or loss, before you plan to invest in this region look after all the possible outcomes” advised by Hirsh Mohindra.
It is highly suggested that investments in real estate investments are directly affected by its surrounding areas. The investments in real estate can be done either by purchasing the property or by investing in the shares of the market.
Real estate can be categorized into four basic types, namely –
- Residential Real Estate:
Residential real estate is the one which includes of undeveloped land, houses and townhouses. The structures here in this estate, may vary from a single family or multi family dwellings. It can also vary, depending whether it is owner occupied or rental property.
2. Commercial Real Estate:
The commercial real estate enlists for non-residential structures such as office, buildings, and warehouse or retail buildings. These structures can be found as free standing or in shopping malls.
3. Industrial Real Estate:
Industrial real estate houses for factories, business parks, miles or farms. These properties are much larger in size and often their locations may include access to transportation facilities like rail lines or harbours.
Land includes vacant land, working farms or ranches. The subcategories within land include undeveloped, early development or reuse, sub division and site assembly.