Skyscrapers and various towers around the world shows one story of success for past few years, and it is the running-strong achievement of Real Estate. Now we always use the word Real estate or realty. But do we all really know the meaning?
What is real estate?
The term Real Estate is a legal terminology that emphasizes about the inherited natural land or properties including houses, sewers, plants etc., which man further improvise to make it a liveable space for unstoppable popularity of the entire world. It usually goes in contrast with personalty or personal property or chattel.
What is Real Property or Realty?
Real property or Realty often serves the purpose as the synonym of Real Estate.
Distinguish Between Real Estate and Real Property:
For a layman, it may be the synonym. But from technical point of view it is further differentiated in terms of
Statutory Law defines Real Estate with few legal terms and rights. It expresses that Real Estate is not only the matter of land; it also encompasses mineral or machinery right attached to it. Further, it includes that the property owner has to submit property tax return to the tax office.In a Nutshell
We can exaggerate the term Real Estate as the land and all its fixtures affixed with it including minerals, gas. coal, machineries, trees, sewers etc, and all the right on it, and the compulsion of paying tax on that property.
Types of Real Estate and Real Estate Profit & Loss
Before investing on any home, office, land or any property one should focus on the property one is investing in. There are different types to categorize Real Estate for our benefit. Below is the gist of the profit and Loss associated with each type:1.Rental House:
Loss: We are always loath to deal with landlord, so it can give you the pain of waiting for big-return.
Loss: You need to tactfully deal with the tenant as most of the time buyers have the tendency to ignore the purchasing work done.
Loss: Renting only a room to a young college-student can be never-ending headache to you.
Loss: Similar like other rentals but with the hassle of more maintenance, repairing and tenants problem.
Loss: You have to face strong contender, and even one vacant storefront can lead you to great loss at a year time
Loss: Many risks are involved and after gaining profit you have to pay very high tax.
Loss: Long waiting time may break your patience and expenses on transaction cost may not fetch you good profit. This deal is little unpredictable.
Loss: Without the cash flow you may have to wait for a long time with huge expenses.
Loss: It will make you loathsome by the act of frequent moving.
Loss: You deal with your capital in the long term basis.