Real estate or other tangible assets – Real estate and other physical assets are considered an asset class that offers protection against inflation. The tangible nature of such assets also leads to them being considered as more of a “real” asset. In that respect, they differ from assets that exist only in the form of financial instruments, such as derivatives.
Sources: https://corporatefinanceinstitute.com/resources/careers/jobs/real-estate/
https://corporatefinanceinstitute.com/resources/knowledge/trading-investing/asset-class/
There are several types of real estate, each with a unique purpose and utility. The main categories are:
For anyone looking to understand how the industry works and what each of the major categories represents, the explanations below will be a helpful guide.
#1 Land
Land is the baseline for all types of real property. Land typically refers to undeveloped property and vacant land. Developers acquire land and combine it with other properties (called assembly) and rezone it so they can increase the density and increase the value of the property.
Residential real estate consists of housing for individuals, families, or groups of people. This is the most common type of estate and is the asset class that most people are familiar with. Within residential, there are single-family homes, multi-family homes, apartments, condominiums, townhouses, and other types of living arrangements.
Commercial property refers to land and buildings that are used by businesses to carry out their operations. Examples include shopping malls, individual stores, office buildings, parking lots, medical centres, and hotels.
Industrial real estate refers to land and buildings that are used by industrial businesses for activities such as factories, mechanical productions, research and development, construction, transportation, logistics, and warehousing.
Now that we’ve outlined the four main categories, let’s explore some specific examples of different types of real property.
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DISCLAIMER: Past Performance does not indicate future performance. All investment is subject to risk and we strongly advise and encourage you to consider all the risks BEFORE making a decision to invest in real estate. U1st Realty Pty Ltd makes no guarantee or specific warranty of any future performance, forecasts, returns, yields, or capital growth of Australian real estate. The information provided by U1st Realty Pty Ltd or its authorised team members is not financial, accounting/tax, or legal advice! Let me reiterate, U1st Realty Pty Ltd encourages you to seek competent advice from a duly licenced professional who is skilled in the area that you are considering investing into BEFORE making a final decision to invest in Australian real estate.
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