Real estate includes all real property including the structures and land on it, and its accompanying natural resources like water, plants or minerals; immovable property of that kind. A person may hold any of the real estate mentioned above, whether it be his home, business, land, etc., whether he is the owner or not. In some jurisdictions it is treated as a marital estate and so is subject to certain rules. It does however include any land or structure which a person may use for any other purpose.
Permanent fixtures are one category of real property. They include items of permanent personal property like furniture, jewelry, art collections, electronic equipment, etc. These items do not disappear with the passing away of the original owner and so are not disposed of and are considered part of the personal property. Some permanent fixtures like art collections do not change ownership after they are sold. These are termed as ‘permanently attached’ properties.
The category of real estate known as ‘permanent fixtures’ includes structures like hotels, restaurants, shopping malls, industrial and office buildings, etc., which cannot be easily moved from one place to another. In some jurisdictions these categories of real property are also known as ‘exclusive domains’. Under this category of real estate, when a person buys a building or piece of land, he owns it not just until he moves out, but actually for the length of his life. So, even if you die you have a home to live in.
There are also three main types of real estate: Residential real estate, commercial real estate, and industrial real estate. In residential real estate, as the name suggests, it is the residential area including houses and apartments. This type of real estate tends to increase in value with the increase in the size of the building. However, if the building is made according to the latest design standards, then its value may also increase.
Commercial real estate is the main category of real estate dealing. It is the place where trade takes place, and may include office space, warehouses, shopping malls, etc. Out of the main categories of commercial real estate, the apartment buildings represent the largest market share. In this category of real estate, the building is built either for single family residences or may be mixed with various other types of buildings.
Conclusion
When you want to invest in real estate, you can opt for either of the above categories, either individually or together. However, before you decide to invest in any particular type of real estate investment, you need to first calculate the amount you need to invest and the rate of return you are expecting from it.
