The real estate business categorically deals with the management, investment, buying, and selling of real estate properties. In the simplest terms, real estate simultaneously determines the building, air, and land rights of any property, above and below the land. Different kinds of people prefer a different kind of real estate business to achieve their goals. For instance, if the objective is to seek a stress-free retirement investment, then a particular sum of capital would be invested in this industry.
“Real estate cannot be lost or stolen, nor can it be carried away. Purchased with common sense, paid for in full, and managed with reasonable care, it is about the safest investment in the world.”
FRANKLIN D. ROOSEVELTThese are the most occurring scenarios under which property ownership is transferred from one party to another. Commonly and as per law, property ownership can be claimed by the one who possesses its title. In other words, the transfer of Property means transferring the title ownership from one party to another. As mentioned a few conditions above, the transfer does not always mean that it is related to some property sale.
What are the four types of real estate?
Residential Real EstateThere are numerous options available in the residential real estate market. However, it is important to note that this type of real estate is the most profitable and financially significant. Sometimes, there are estimates that the combined value of the housing market exceed some of the countries’ annual GDP. The value of this market often only grows with time and decades. Following options are available in the residential real estate market:
- Single-family houses
- Cooperative apartments
- TDuplexes, Triplexes, Fourplexes
- Mobile houses
Commercial Real EstateCommercial real estate is more minor than residential real estate, simply because everyone needs a place to live, but not everyone wants a place to shop. Since it is smaller, thus the worth of commercial property is almost half the value of residential real estate. Instead of independent property dealers, commercial properties are mainly dealt with by commercial property companies.
- Office spaces and towers
- Fast food outlets, shopping malls, and power centers
- Property for hospitals
- Property for grocery stores and gas stations
- Parking lots and storage facilities
Land Real Estateland real estate property includes Raw land for investment purposes. For a long-term investment strategy that can maintain taxes, land properties are purchased. Kind of land includes:
- Orchards, Timberland
- Raw Land
- Planned urban development (PUD) for commercial and residential development.
- Ranches and Farms
- Residential subdivisions