Types of Real Estate
Real estate is land and buildings, along with natural resources such as minerals, crops, and water. It is a form of ownership, and the term "owner" means that someone has an interest in the land, buildings, or housing. Real estate is an important part of today's economy, with a plethora of different properties available for sale. The most common types of real estate are residential and commercial. Residential properties include single-family homes and apartments. Commercial real estate involves land used for businesses. These can range from office buildings to hotels and medical facilities. In the United States, about six percent of land is used for businesses. Industrial properties are used for manufacturing and distribution. Residential properties, on the other hand, are used for private living. Residential real estate is composed of single-family homes, condominiums, and townhouses. There are also multifamily rental properties that contain four or more units. In addition to these, there are buildings and apartments that contain five or more units. Commercial property is typically used for business purposes, and can generate a lot of cash flow. Investment properties often generate profits through rental income. Similarly, residential real estate can be profitable if improvements are made to it. By building up properties, underdeveloped land becomes more desirable for developers. As a result, the value of the land increases. Rents on residential properties can increase due to inflation and demand. After costs are deducted, the remainder of the rent can be claimed as income.
