Real-estate is defined as the properties, land, building, and underground rights below the land, along with its natural resources such as crops, minerals, or water. The word ‘real-estate’ means real or physical property. The word “Real” is derived from a Latin word root res or things, and they even tell that it is from the Latin word rex, which means “royal” because the kings used to own all the lands in their kingdoms.
There are 4 types of Real-Estate –
1. Residential Real-Estate
Residential real estate includes both newly constructed buildings and resale homes. The most common category and it is in depend is single-family homes. There are also called as condominiums, duplexes, townhouses, duplexes, triple-deckers, high-value homes and vacation homes.
2. Commercial Real-Estate
Commercial real-estate is shopping centers or malls, medical and educational buildings, hotels, and offices. The building is often considered as commercial, even though they are used by residences, it is because they are owned to produce income to the developers.
3. Industrial Real-Estate
Industrial real estate includes manufacturing buildings and warehouses. The buildings can be used for research, production, storage, and distribution of goods for only industrial purposes. Buildings used for the storage of goods are considered as commercial buildings.
The subcategories within vacant land include –
- Under-developed, developed or re-usable sites
- Subdivision sites
Real-Estate refers to producing, buying, and selling the estate. Real-Estate also is affecting the economy through economic growth in the countries.
1. Construction Of New Buildings
This is a component of gross domestic product. It includes both residential and commercial buildings. In the past few years, real-estate construction has contributed trillion to the nation’s economy. Presently, real-estate is growing faster and helping the development of the countries.
2. Selling Of New Buildings
Building a new home is an important category. It includes the construction of family homes, town houses, and condominiums. The National Association of Home Builders provides a monthly data on home sales and has average prices. It takes 4 months to establish a new house to be sold. Real-estate agents assist homeowners and investors to buy and sell all types of properties. The industry is divided by the specialists that focus on one type of real-estate. Agents help in finding the buyers through the multiple lists or their professional contacts. They know the local market well. It means that they can find a property that meets your important criteria, and then they compare the prices. They guide you to affordable areas. Buyers and the real-estate agents negotiate, pointing out reasons so that the seller accepts a lower price. The real-estate agents help during legalities of the process, inspection, and financing. Real-estate agents who increase their professionalism become REALTORS.
Buying or selling homes or land is called Real-Estate Investing. That means you must consider several factors. Will the price of the house that you are living in rise? If you get a mortgage loan, how will the interest rate affect your future? Many are investing in homes that they want to buy and sell as a business. Many people own several homes and rent them, and even rent vacation homes. They are basically investors that invest in housing without buying a home. You can buy stocks from home-builders. Their stock prices rise and fall in the market.