Real EstateWrite for Us
Real Estate Write For Us – It is certain that on many occasions, you have heard or used the term real estate, but the meaning still needs to be clarified to you. That is why in this article, we will tell you what real estate is and give you some examples so that you understand them much better.
What is Real Estate?
Let’s start by defining what real estate is, and later, we will delve into the subject by explaining some details about the types of real estate and mentioning some examples to clarify each type.
Real estate is distinguished from personal property because. Private property refers to things not permanently attached to the land, such as vehicles, jewelry, furniture, or farm equipment.
Specifically, real estate includes the earth’s physical surface, what is above and below it, what is permanently attached to it, and all property rights. Among these rights are the right to sell, lease, and enjoy what the land offers.
Real Estate Specifications
The terms real estate, land, and real estate are used interchangeably, but we must clarify what real estate is and that there are some distinctions that, although small, do make a difference.
- What is real estate? As we mentioned, it is land plus any permanent artificial additions or adequacy, such as houses or buildings.
- As for terrain, this refers to an extension of land that can go from the center of the earth and up towards the airspace; trees, minerals, and bodies of water can be include in the terrain.
- Real property is the benefits, interests, and rights inherent in the ownership of real property.
Real property should confuse with personal property, which includes all assets whose main characteristic is that they are movable. For example, cars, boats, furniture, clothes, and smartphones.
Types of real estate and examples
Since we have talked about what real estate is, we will now comment on the main types that exist:
This is any property used for residential purposes, and examples are condominiums, duplexes, cooperatives, houses, and multi-family residences with fewer than five individual units.
commercial real estate
This is any property use solely for a commercial purpose, for example, gas stations, parking lots, supermarkets, hospitals, hotels, offices, restaurants, shopping centers, shops, and theaters.
industrial real estate
These are any properties used for manufacturing, production, distribution, storage, and research and development, for example, factories, power plants, and warehouses.
The land undevelopes or unmodified property, for example, vacant and agricultural land such as farms, orchards, ranches, and forests.
This real estate is property used by the public, for example, cemeteries, government buildings, libraries, parks, schools, and places of worship such as churches.
Physical characteristics of real estate
In addition to clarifying what real estate is, we will mention some of the physical characteristics of real estate, these are three and they distinguish them from other assets in the economy:
While parts of a piece of land may be removable and the topography may altere, the geographic location of any portion of land cannot be changed.
A terrain is durable and indestructible. Although it can modify, it cannot be destroyed entirely; that is, it is permanent.
Every terrain is different. Although they may share some similarities, each landscape differs geographically.
Economic characteristics of real estate
For its part, the land also has some different economic characteristics that influence its value as an investment:
- Improvements: Any change or addition to the land, such as a building, for example, that affects the value of the property is called an improvement. These private improvements (such as building houses or putting up fences) are called land improvements.
There are also improvements of a public nature, for example, sewage systems, placement of sidewalks, etc. these are called terrain improvements.
- Investment permanence: When an improvement is made to the land, the total capital and labor used for the improvement represent a considerable fixed investment.
Although a building can be demolished, improvements like electricity, water, and sewage are usually permanent because they remove.
- Preferred location: The location refers to the choice and taste of people regarding a particular area, and it depends on various factors such as history, convenience, friendliness, and reputation. Site is one of the most important economic characteristics of real estate.
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