Real estate refers to property consisting of a building and land together, including the natural resources of the land. The natural resources included range from fauna and flora, livestock, farmed crops, minerals and water. Real estate can be categories into three groups depending on how it is used, these being industrial, residential and commercial real estate properties. Some of the
examples of residential real estate include houses, undeveloped land, town homes and condominiums. Example of commercial real estate include warehouses, office buildings and retail store buildings. Industrial real estate properties are most commonly farms, mines and factories.
Personal real estate property
Personal property includes properties such as bonds, stocks and other forms of investments. They might also include beds, computers, clothes, appliances and any other tangible possessions.
Real estate and real property
Real estate refers to simply the land and any other improvement that has been done on it. Lease holders and renters have the right to inhabit land or buildings that are viewed as part of their personal estate, but are not considered real estate.
Home ownership, also referred to as owner occupancy, is the most popular form of real estate investment. It is estimated that a third of people in the United Kingdom own their homes. People who are in the market to purchase a home to live in often require to borrow money in term of mortgage because the prices of homes are usually above the savings that many people have to buy a home. People looking for a mortgage to invest in real estate in the form of a home have wide range of options. The mortgage might be fixed or variable rate. Fixed rate mortgages have higher interest rates compared to variable rate mortgages, which make them more predictable but more costly.
Commercial real estate
Leasing or purchasing real estate for commercial use is different from purchasing a home or purchasing residential real estate as a
form of investment. Commercial leases are longer compared to residential leases and the profit you get on commercial real estate
is highly determined per square foot. This is unlike properties that are intended for private residences.
Investment real estate
Unlike other forms of investments, real estate is highly influenced by the condition of the surrounding area where it is located. Apart from the inevitable impact of global or national recession, real estate values are influenced by local factors such as crime rates, job availability, property taxes and sometimes other external factors. Purchasing real estate usually leads to profits or
losses through two ways. You might get income from rent, or appreciation of the real estate value. Rental income is generated
from money that comes from land that is already developed into commercial or residential real estate. Appreciation might result from either development of raw land or from the appreciation of the area around your land.
The difference between commercial and residential real estate investment is that residential real estate is cheaper and smaller compared to commercial real estate. It is also more affordable for small investors than the commercial real estate