Real estate is a property which consists of land and buildings along with the natural resources such as crops, minerals, and water. Depending upon the nature of the property, the owner has right to consume, rent, mortgage, sell, transfer, give away or destroy it.
A property is something which belongs to someone. Property is one or more components whether physical or incorporeal of a person’s belonging being owned by a person or a group of people or a legal entity like a corporation or society.
|Property consisting of land or buildings.
||A thing or things belonging to someone; possessions collectively.
||Land, freehold, immoveables, landed property, plot, realty and territory
||Wealth, home, ownership, farm, equity and tract
||Possession, stuff, effect, holding and dud
||Debt, designation, dumping, discarding, eruption
||Its types are:
- vacant land
- residential properties
- commercial properties
|Its types are:
- immovable property
- estate in land
- real estate
- real property
- moveable property or personal property
- dead investment property
||The word real estate was originated in between 1705-15.
||The word property was originated from Middle English: from an Anglo-Norman French variant of Old French propriete, from Latin proprietas, from proprius ‘one’s own, particular’.
- Eng (UK): /riːl/ /ɪˈsteɪt/ /ɛˈsteɪt/
- Eng (US): /ˈrē(ə)l/ /iˈstāt/
- Eng (UK): /ˈprɒpəti/
- Eng (US): /ˈpräpərdē/
||Its advantages are:
- Cash flow
- Hedge against inflation
- Asset protection
- Physical asset
|Its advantages are:
- A good asset to hold in inflationary times, capital growth and rent increases tend to be linked with inflation and hence property is a true inflation hedge.
- Banks are more comfortable with property, and will lend more money at lower rates than they do with share investors. No margin calls, good interest rates, high loan to value ratios make this a good asset to gear into.
- Reasonable long term returns.
- The sector is more tax efficient than bonds and cash, though less so than shares.
- There is enormous profit potential in fixing up slightly run-down old properties in desirable locations, though development is not the same as passive investment.
- As long as you have tenants you’ll never be bored or lonely.
||Its disadvantages are:
- Finding financing
- Additional expenses
- Legal expenses and difficulties
- Property taxes
|Its disadvantages are:
- Gearing is a double edged sword, and the ease of credit only encourages people to take unacceptable risks.
- Direct property is an extremely expensive and high maintenance investment.
- Tenants are an expensive pain.
- The supposed low risk of property is an artifact of infrequent quotes.
|Example in Sentence
- I think you should invest in the real estate so that you will get a good return.
- You should maintain a good relationship with the real estate agent so that he will bring good deals for you.
- This property belongs to Aisha.
- She has already owned that property.