When you hear the words “real estate” there are many things that come to mind. From the fact that you can buy homes and businesses from people who’ve made a killing through the buying and selling of real estate to the fact that you can invest in commercial property for a profit. There are also other types of real estate that are not real estate as well, such as vacant land that has a great deal of potential.
Commercial property comes under the category of real estate because it consists primarily of businesses that generate income for the person that owns it. This includes apartment buildings, offices, retail space and land.
Residential Property While residential property comes under a different classification, it is the type of real estate that you see more often. This includes single family homes, condominiums and townhouses. All of these properties are used primarily for residential purposes. If you invest in residential property, you are more likely to be buying a home that will be able to be used as a primary residence. When you make an investment in residential property, you are essentially getting a piece of property that you can live on and utilize for years to come.
The one difference between residential and commercial property is the fact that residential property is usually owned by a company. While companies do own a lot of real estate, residential property is usually owned by individuals. When you make an investment in residential property you are acquiring the rights of ownership of that real estate. It’s this ownership, which is what makes this type of property very lucrative for investors.
There are many advantages to purchasing property with the intent of using it as an investment. You could profit greatly by being able to purchase an investment property for less than what someone would pay to buy a similar property. This could be possible because the person who is selling the real estate would be selling to someone who has just started out and may not have the capital available to buy the house.
While residential property isn’t considered real estate that is ideal for investing in for the average person. The properties that are most commonly purchased by home owners are those that are not commercial. For example, apartment complexes. The reason for this is that the homes that are built in apartments are not generally used as commercial establishments.