What is Real Estate?
Real estate is real property consisting of land, buildings, air rights above the land, and underground rights below the land, buildings, fixtures, roads, structures, and utility systems. Property rights give a title of ownership to the land, improvements, as well as natural resources like minerals, plants, animals, water, and more.
Types of Real Estate
The land stands as the baseline for all types of real property. It typically refers to undeveloped property and vacant land, and developers acquire land, and combine it with other properties (known as assembly) and rezone it in order to increase the density and increase the value of the property.
Residential real estate encompasses housing for individuals, families, or groups of people. It is the most common type of estate and is the asset class that most people are familiar with. Within residential, you will find single-family homes, apartments, condominiums, townhouses, as well as other types of living arrangements.
Commercial property talks about land and buildings which are used by businesses to run their operations. Examples include shopping malls, individual stores, office buildings, parking lots, medical centers as well as hotels.
Industrial real estate is land and buildings that are used by industrial businesses for activities like factories, mechanical productions, research and development, construction, transportation, logistics, and warehousing.
Investing in Real Estate
Investing in real estate means anyone who buys and sells a home. This implies that you must consider several factors. These factors include: will the house rise in value while you live in it? if you get a mortgage, how will future interest rates and taxes affect you?.
If you are among one of those who do well with their homes and want to venture into real estate as a business, there are various ways of doing that. You can flip a house, (i.e.) buying a house, renovating and selling it. Many people, on the other hand, own several homes and rent them out, while others use Airbnb as a convenient way of renting out all or part of their homes. You can also rent vacation homes using VRBO or home away.
Most people also invest in housing without buying a home, by buying stocks of homebuilders. Their stock prices rise and fall with the housing market. Another option is investing with Real Estate Investment Trusts, known as REITs, which are investments in commercial real estate. Their stock prices lag behind trends in residential real estate by a few years.
Careers in Real Estate
If you are considering a career in real estate, then you may want to take a look at any of the above six areas of the industry.
These represent the most common jobs (titles) in the industry:
- Firstly, home Inspector – This is someone hired to assess the quality of a home for a seller or purchaser.
- Secondly, real Estate Attorney – A lawyer that specializes in real estate transactions.
- Thirdly, appraiser – One who values properties.
- Fourthly, mortgage Specialist / Underwriter – Someone who approves mortgage applications
- Also, commercial Broker – An agent who sells commercial properties.
- Analyst – One who performs financial analysis and valuation of properties
- Agent – A sales agent or ‘realtor’.
- Loan – Underwriter – Someone who analyzes the creditworthiness of a borrower.
- Building Inspector – One who examines buildings and works with appraisers.
- Director of Real Estate – A corporate job.
Examples of Real Estate
Here are the specific examples of different types of real property:
Detached house –
This is a free-standing building that is not connecting to anything else.
A building that has only one room and typically a steep pointy roof.
This is a dwelling that is typically made of raw materials like bamboo, mud, and clay.
Mobile home –
A vehicle that is on wheels that has a permanent residence attached to it.
Portable house –
These are houses that can be moved on a flatbed truck.
Condominium (Condo) –
A building with individual units that is owned by individual people.
Multi-family house –
This is often seen in multi-story detached buildings, where each floor stands as a separate apartment or unit.
This is an individual unit in a multi-unit building. The boundaries of the apartment are generally defined by a perimeter of locked doors, which is often seen in multi-story apartment buildings.
Single – family –
This is any home that is designed for only one family.
Multi-family dwelling –
This is any group of homes designed for more than one family.
Any unit that is linked to another