Real Estate

Put simply, real estate is property such as land and buildings. It is not limited to just land and buildings, however. Natural resources of the land, including water, mineral, crops and livestock, are sometimes considered part of real estate. The business of real estate involves buying, selling or renting of land or buildings. For land to be seen as real estate, it must be owned by an entity - owner-less land is not.

When many people talk about real estate, what many of those have in mind is residential real estate. However, real estate is broadly divided into three categories: residential, commercial, and industrial. This classification is determined by the purpose of use. Residential real estate is property that is meant for family use, as contrasted to one for business purposes. Major examples in the United States include apartments, condominiums, and terraced houses. Undeveloped land is sometimes also included. Commercial and industrial real estate is property intended principally for business purposes. Examples include office buildings, factories and warehouses.

Real estate offers a very good avenue for returns on investment. Investment can be made through purchase of residential or commercial property. Owners can get returns in both rent and property value appreciation. It is typically less-expensive investing in residential real estate, making it ideal for those with little capital.