Real estate is another investment you can venture into, especially if you’re more inclined to invest in properties of land and
buildings.
First off, a real estate is a property that not only
comprises of land and the buildings on it but also the natural resources found
in the land. These natural resources include uncultivated flora and fauna,
farmed crops and livestock, water and mineral deposits.
Despite media referring to the “real estate market” as
something that is majorly made up of residential living, we can actually
classify real estate into three broad categories based on its use. We’ll now be
discussing those three.
Residential
Firstly is the residential real estate. This is made up of
undeveloped land, houses, condominiums, and town houses. This also includes
newly constructed and resale homes.
Residential real estate mostly focuses on the wants and
needs of a homeowner as well as his or her family. This involves properties that
are bought mostly for personal use, most often for providing houses and homes
to families.
Commercial
Then there is the commercial real estate. This category is
made up of office buildings, warehouses, and retail store buildings. Shopping
centers, strip malls, medical and educational buildings, and hotels are also
included in this class.
Apartments are also considered commercial even though they
are used for residences. This is because they are owned and used with the
intent of generating income.
Also, commercial real estate is more focused on the business
itself. The properties under this category are sold, leased, or used to achieve
a certain predetermined business objective you set. It’s an investment method
meant to help you achieve an anticipated rate of return on the funds you
decided to invest.
Industrial
Last but not the least is the industrial real estate. This is
comprised of factories, mines, and farms. The buildings included in this
category can be used for the purpose of research, production, storage, and
distribution of goods.
Some buildings that distribute goods are considered
commercial real estate, the classification is important because the factors,
such as the zoning, construction and sales are handled in a different manner.
FSMSmart is here to
provide you with the latest news updates about market trends. Never miss out on
news regarding forex, commodities, consumer, financial, and technology here in
FSMSmart!
