Owning a piece of land whether it is just a piece of land or it has a structure, along with everything that comes with it is considered as real estate. Everything in the said property including structures (if there are any), air rights, and mineral rights, basically any immovable or permanent fixture that can be bought, sold or leased is included.
Real estate is becoming a more and more lucrative business investment, especially if your property is well situated since the most important part of any real estate business is its location. This cannot be stressed enough. Location is the deciding factor whether your business will flourish or not.
The types of real estate
Generally there are three types of real estate that is available for ownership in the market. The first type and probably the most common is the residential real estate which includes construction of new homes and buying or reselling existing properties.
The second type is the commercial real estate where it includes malls, office buildings, hotels, schools and hospitals. Apartments are also considered as such even though they are used for residency, since they have been constructed to generate income.
The last one is the industrial real estate which includes factories, warehouses and farms where the property is used for research and manufacturing goods to be distributed and sold to the general public.
Investing in real estate
Unlike other investments, real estate investment heavily relies on its immediate surroundings for it to be determined as a sound investment or not hence the term “location, location, location”. Residential real estate values vary from place to place depending on a lot of factors in its general vicinity such as the economy, the safety of the place, its proximity to various facilities and such.
Commercial real estate though is probably more profitable with longer duration of leases which can produce a more predictable income. However, bigger profit means bigger problems. The regulations that are attached to these commercial real estates can really cause quite a headache, and they usually vary from place to place.
All in all, investing in real estate can prove to be very lucrative especially if you’re keen on the details. There are a lot of ways to go about investing in real estate. Some people in fact have done so well selling their home that they are probably thinking to make a business out of it. Others purchase living spaces and rent it out. Generally if you know of a place that has good traffic flow, it may be a sound decision to invest in that.