What is Real Estate?
Real Estate Investment Trusts (REITs) are one type of investment that has seen a recent increase in popularity. Other types include fixed investment trusts, principal stock funds, real estate owned property and foreign real estate investment trusts. Real Estate Investing basically means buying and holding a certain type of asset. Many people are starting to use REITs as a vehicle for their investments for many different reasons.
An example of a real estate investment trust would be a vacation home. A couple may own this type of real estate investment trust and use it as an investment portfolio. One of the advantages of these types of investments is the tax advantages they provide the investor. The investor can usually deduct the cost of purchasing and holding the asset as long as it is used primarily as a residential real estate investment.
A large number of the properties available for sale in a typical real estate market are those that are located in areas that have all three of the main types of public infrastructure found in the United States. Some examples of these main types of public infrastructure are the following: Water, Sewer Systems and Telephone Systems. All of these things are priced based upon the location of the property in question, the economic characteristics of the area and the amount of land that is required to cover each of these assets.
There are three main categories of real estate that are measured by the amount of land that they cover and which include vacant land, permanently attached land and low-performing land. Vacant land is that which is not fully occupied and is often referred to as land that is for sale as an empty lot. Permanently attached land is that which is permanently attached to the earth and is also measured by the amount of dirt that is required to support a particular building. Low-performing land, on the other hand is land that is located in low traffic areas and is normally used for agricultural land or commercial development.
There are two major types of residential real estate and these include single-family residences and multi-family dwellings. Single-family residences are generally the smaller parcels of land that comprise the residential areas found throughout the United States. Multi-family dwellings are also commonly referred to as apartment buildings and townhouses. These large multi-unit dwellings are generally seen in metropolitan cities and towns. Most of these buildings consist of apartments or condominiums and townhouses and many of them are made up of multiple units that are interconnected through hallways, stairways and doors.
The housing industry has changed drastically over the years and now consists of buildings of varying sizes ranging from apartment buildings to condominiums. The building industry today also consists of manufactured homes and land for development as well as permanent fixtures such as schools, hospitals and businesses. Real estate includes any land that can be used for real property purposes and includes everything from vacant lots to huge pieces of land with houses built on top of it. The definition of real estate also encompasses any improvements that may be made to the property. This includes roads, streets, sidewalks, parks and forests.
