Real estate is real property consisting of the buildings and land on it, and its accompanying natural resources like water, minerals or plants; immovable property including residential, commercial or industrial buildings; a right to enjoy the possession of the property, structures or houses in common, immovable personalty of this kind. The major categories of real estate include the landed property (which includes buildings constructed for permanent occupation), residential real estate (which includes real estates intended for single family dwellings), business real estate (which includes immovable personalty like warehouses, office buildings, retail stores) and the vacant land (which includes undeveloped lands). In UK, there are two kinds of real estate: leasehold real estate and proprietary real estate. Leased and immovable real estate have similarities, while proprietary real estate has similarities with bank owned real estate.
Leasehold real estate means that the land is permanently attached to the property-owners for an agreed period of years. Usually, it is designed to produce the least possible disturbance and that it provides the maximum security. During the tenure, the tenant may use the land as he wishes, construct structures on it and enjoy the fruits of his own labor. Normally, the land is free from all kind of obligation and there are no restrictions whatsoever. A typical leasehold property is the kind of property that produces minimum disturbance during the tenure, and at the end, the property yields greater profit than the actual cost of the personal property.
Immovable real property on the other hand, is not permanently attached to any physical structure. The name suggests that the property is immovable because it is not meant to be moved. Almost all kinds of immovable real estate are those kinds of properties which are not designed to yield profit over time. A typical immovable real estate is the kind of property which produces minimum disturbance over time, and at the end, the property yields greater profit than the total cost of the personal property.
These two types of real estate are different in many ways. Although both types of real estate have some common features, the way in which they are managed and the way in which they produce profit is very different. As far as the management of a real property or a home is concerned, both require experts who know how to manage them properly. In fact, real estate management is a multi-skilled job and every person who handles a real estate needs to be expert in several other fields. There are a number of companies that are hired by people to manage their houses and other real estate properties.
In relation to the managing of a real property or a home, there are three main categories. These three categories include: residential land, commercial land and vacant land. Within these main categories, there exist various sub-categories as well. These sub-categories include: farm land, pasture land, dairy land, fish-farm, mushroom bed, dairy products, poultry, and horticulture-herbiculture.
On the other hand, when it comes to the management of a commercial property or a home, the three main types include: apartment buildings, condominiums and town homes. Within these main types, there also exist various sub-types. These sub-types include: industrial lands, office buildings, shopping centers, industrial lands and retail lands. All these three categories have their own distinct economic characteristics.
If you are planning to invest in real estate and want to get into a real estate investment trust, you need to be very clear about your goals. Are you planning to invest in a single family home or in a rental property? Do you plan to invest both in terms of buying a single family home and in buying a rental property? Or do you plan to invest in both the properties? The answers to these questions will help you determine the type of investment that you should make.
Also, there is one more important thing that you should pay attention to before investing in real estate. This is the third category of real estate – the industrial lands. As the name itself indicates, these are the properties used for the production of steel, coal, iron ore, limestone and other such raw materials. So if you are planning to invest in this type of property, you should know about the economic characteristics of steel, coal and iron ore so that you can make an informed decision as to whether it is profitable for you to make real estate investments in these types of properties. Also, another important thing that you should keep in mind is the quality of the soil in an area where you are planning to invest. This will help you decide whether you should make a big investment in a town home or in a condominium building.