Sun. May 16th, 2021

Real estate investment refers to investing in certain kinds of property. Real estate includes real property including the buildings and land on it, its accompanying natural resources like water, minerals or crops; immovable property, of this kind; a mortgage on the real estate, buildings or housing constructed with the assistance of financing institution; the tangible assets in respect of a real estate, which may include improvements made on the property itself or any improvements made to the subsoil beneath the soil. The property available for purchase and the kind of real estate being invested in may vary from one region or country to another.

Real estate investment can be broadly divided into two major categories. One deals in residential real estate and the other in commercial real estate. Residential real estate deals in houses, condominiums, apartments, townhouses and cooperative homes and so on. The second category of real estate investments deals in properties used for business, such as offices, warehouses, shops, industrial buildings, etc. Some examples include apartment buildings, office complexes, retail shops and warehouses.

The term ‘immovable’ refers to the immovable part of the real estate, which may include the structures and foundations on which the structure is built. The other term, ‘owner-occupied dwelling’ refers to a residential dwelling, whether let out or not, which is actually occupied by the owner. In economic characteristics, an owner-occupied dwelling tends to earn a higher income than an immovable dwelling. This income is higher because the real estate has more value and because it is, therefore, more economically viable. It also has a fixed rate of exchange, and so tends to remain relatively stable over time.

The term ‘permanent attached property’ refers to a type of real estate that comprises a personal property (like a house) and at the same time is connected permanently to some other property (like a farm). Such type of real estate includes permanently attached buildings like factories, warehouses, row homes, storage facilities, barns, and others. Permanent connected real estate typically enables its owner to change its use either for commercial or residential purposes. In economic characteristics, such type of real estate includes personal possessions held by the owner and can be alienated only through court order.

These types of real estate investment opportunities are further classified into two main categories. These categories are: residential real estate investment and commercial real estate investment. The residential type mainly consists of apartment buildings, townhouses and condominiums. The commercial type includes office complexes, office buildings, retail shops, warehouses, manufacturing plants and others. Both of these main categories offer lucrative opportunities for those persons who have a sound knowledge and understanding of the nature and features of the main categories.

The major factors influencing the prices of these types of real estate are location, demand, value of the property and land, and level of development of the property and surrounding area. Most of the properties are generally located in prime locations that have a good amount of commercial property and good amount of residential property available in the vicinity. These properties are maintained and secured by a legal system known as a “domestic” system. In most of the cases, the purchaser or the landlord has the complete power to decide about the changes in the property and surrounding area.

By Arlene Huff

Arlene Huff is the founding member of Golden State Online. Before that She was a general assignment reporter. A native Californian, she graduated from the University of California with a degree in medical anthropology and global health. She currently lives in Los Angeles.

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