Real estate is one of the booming industries in the world today. Many people are now investing in it and it has a promising future. It entails buying and selling properties with the help of real estate agents. Real estate can be owned by either the government, private party, or a corporate entity. It also affects the economy, infrastructure, and environment of the place.
Real estate is defined as a real property that consists of land and any other improvements permanently attached to it which can be natural or manmade. These include buildings, trees, fixtures, bridges, homes, water, utility system, and many more. Real estate is different from your personal property which are things that are not attached to the land permanently such as vehicles, furniture, boats, and others. Read on as Accrue Real Estate, a real estate company explains what real estate is
Types of Real Estate
There are different types of real estate and each of them is unique and has a specific utility. They include
Piece of Land
The land is the foundation of all types of real estate. It is defined as vacant and undeveloped land. Real estate developers acquired land and other properties and developed them. This helps in increasing the value of the property.
Commercial Real Estate
Commercial real estate is defined as a piece of land and buildings used by business owners to carry out their daily operations. Examples include hotels, educational buildings, shopping malls, individual stores, offices, medical buildings, and many more. Apartment buildings are also referred to as commercial real estate though they are used for residence. This is because they are built to produce income. Some buildings that distribute goods are also referred to as commercial real estate.
Residential Real Estate
Resident real estate is the most common type of estate people are familiar with. It is built to house families and individuals and can also be a resale home or new construction. Residential real estate has different living arrangements which include single-family homes, vacation homes, condominiums, duplexes, and high-value homes. It also has townhouses, quadplexes, multi-generational homes, triple-deckers, and many more.
Industrial Real Estate
Industrial real estate is defined as land and buildings that are used for industrial purposes. This includes activities such as factories, warehousing, storage, mechanical productions, construction, research and development, transportation, and many more.
How the Real Estate Industry Works
The real estate industry is divided into different categories and they include development, brokerage, sales and marketing, property management, and many more.
Development
This is defined as purchasing a piece of vacant land, renovating buildings, and selling developed buildings. Developers make a profit by adding value to the land and they are also responsible for the project finances.
Properly Management
Property management companies help real estate owners sell or rent their properties and other daily activities of the properties. These include collecting rent, managing tenants, performing repairs, and many more. They charge the real estate for the service they render and also charge each property owner which is often a percentage of the rent.