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What is real estate?

Definition​

Real estate is land plus all permanent improvements attached to the land, whether natural or man-made, including water, trees, minerals, buildings, houses, fences and bridges. Real estate is a form of real estate ownership. It is different from personal property, which is things that are not permanently attached to land, such as vehicles, boats, jewelry, furniture, and farm equipment.

Understanding Real Estate​

People often use the terms land, estate, and real estate interchangeably, but there are some subtle differences.

  • Soil is the surface of the earth to the center of the earth and upwards to the sky above, consisting of trees, minerals, and water.

  • Real estate is land plus any man-made permanent additions such as houses and other buildings.

  • Real estate - one of the two main types of property - is the interest, interest and rights inherent in owning real estate.

In general, real property includes the physical surface of the land, what is above and below it, what is permanently attached to it, and all property rights, including the right to own, sell, rent and benefit from the land.

Real property should not be confused with personal property, including all property that does not meet the definition of immovable property. The main feature of personal property is that it is movable. Examples include vehicles, boats, furniture, clothing, and smartphones.

How the Real Estate Industry Works​

Despite the size and complexity of the real estate market, many people tend to think that the industry consists solely of brokers and salespeople. However, millions of people actually make a living from real estate, not only in sales but also in appraisals, property management, finance, construction, development, consulting, education and many more. .

Many professionals and businesses, including accountants, architects, bankers, title insurers, investigators and lawyers, also depend on the real estate industry.

Real estate is a major driver of economic growth in the United States. In fact, the number of housing starts - the number of new residential construction projects in a given month - published by the US Census Bureau is an important economic indicator. The report includes data on building permits, start-up and completion of housing, divided into three different categories:

Single-family homes

Two- to four-unit homes

Single-family buildings many households have 5 units or more, such as apartment complex

Investors and analysts keep a close eye on housing starts, as numbers can give an idea general idea of the economy. In addition, new housing types can give clues about the development of the economy.

Gist​

  • Real estate is a type of "real estate" that includes land and anything permanently attached to it, whether natural or man-made.

  • There are five main types of real estate: residential, commercial, industrial, raw land and special purpose.

  • You can invest in real estate directly by purchasing a home, rental property or other real estate, or indirectly through a real estate investment trust (REIT).

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