Types of real estate

In the simplest of terms, real estate boils down to land and the buildings that are on it and resources around it to the air above it. News, media and the web generally refer to the term real estate as residential living but it can actually be divided into three separate portions which are industrial, commercial and the most popularly known, residential. Residential consist of housings and other residential types of buildings like condos and apartment complexes. Commercial real estate are things like retail, office buildings and warehouses. Industrial real estate are things like mines, farms and factories.

Furthermore, to this, real estate can also be divided into two more portions, personal property and real property. Personal property are those that are usually of personal use and nothing more like computers and clothes. Real estate is an instance of real property like the land and buildings and the rights to these privileges. Land without an owner is not considered real estate like the certain regions in the North and South poles.

Leases are commonly used in real estate, especially in the commercial portion. A lease is the contract where one licences another party conveys land, services, or property to another for a specified time in exchange for periodic payment. These leases can run from 1 to 10 years or more and the larger the tenant, the longer the lease. A short lease can provide flexibility in terms of rent as well as the opportunities to change unfavourable tenants whereas a longer rent provides more in terms of security especially with creditable tenants.

What real estate is to you depends entirely on just what you want to do when you get into it. Whether you are looking to invest, looking to buy or looking to sell, looking to set up a business or looking to lease out your own land. A career in real estate can be profitable and there are different tactics and strategies such as flipping, where one buys real estate and holds onto it for a few months while waiting for the price to rise so they can sell it at a profit.