Sunday, October 17, 2021
Home Real Estate

Real Estate

Real estate implies the land, and it includes all the permanent improvements on the land. Thus, natural or man-made additions such as trees, water, minerals, homes, buildings, bridges and fences also subside into the section.

Many people confuse real estate with private property. Though, anything which is not always attached to the land is not real estate. Jewellery, boats, vehicles, farm equipment and furniture are only personal property.

Real estate in easy words

Anything and everything which is always attached to the land, be it natural or unnatural, is real estate

There are five types of real estate: residential, commercial, industrial, special use and raw land.

Investing in real estate can be done directly through purchasing homes, other properties or rental properties. Real estate investment trust ( REIT ) is the indirect method. 

How is real estate different from real property?

Land, real estate and real property shouldn’t be used interchangeably. There are small contrasts between the three. Real estate you know now, let me explain the rest.

Land: If you own land, you own the entire area; from the centre of the earth and the air space above it. You see, people often build many floors on the land they own. They can even make buildings if they have the legitimate rights. Further, builders dig up the surface to build a stable base. They can do this because they own the land.

Real property: Interests, benefits and rights which are given to the individual or entity who acquires the property is one of main classifications of property.

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