Business

Types of real estate, classified by use that should be known before investing

Did you know that Real estate is closer than you think? Because, of course, everyone must have a place to live. Whether it is a house, condominium, townhouse, or apartment, it’s not just housing and land. It’s real estate. There are still many things that fall into this category. So, what’s that real estate Indonesia Investment? How is it different from a movable property Investment? Before answering these questions, Let’s look at the meaning of actual estate first.

What is real estate?

Real estate is land, buildings such as buildings, houses, offices, factories, factories, woody plants, and anything adjacent to the land that cannot be moved. In addition, natural assets that make up the soil, such as rivers, marshes, minerals, gravel, and sand in the land area, are also classified as real estate.

Including rights related to land ownership, such as land ownership rights and the right to live, was placed in this category. It can be said simply that real estate is a property that cannot be moved. It won’t be easy to do if it can be moved or destroyed.

Real estate How is it different from the movable property?

Movable property is a property that can be moved. Not attached to the ground It can be taken with you, whether it is cars, household appliances, clothing, jewelry, computers, mobile phones, electrical appliances, called any property that is not real estate. Considered all movable properties, movable rights such as patents copyrights are also classified as movable properties.

An example of the apparent difference between movable and real estate is that the value of a car as a movable property is steadily decreasing due to the depreciation that occurs every year and has a short life expectancy. Golden Colorado Real Estate In contrast, the value of homes as real estate continues to rise. The depreciation is almost meaningless because the amount of added value is greater than the amount of depreciation incurred each year.

What are the characteristics of real estate?

The value of real estate depends on its location and current economic conditions. Does not depend on the property. If the economy goes down, the price of real estate will also go down. This is a golden time for speculators to buy. and sell it later when the price increases. It can be said that the most crucial factor in the price of real estate is the economy.

Real estate is relatively slow to convert to money. As a result, holding is riskier than holding cash. But it can reduce the risk by utilizing the real estate to generate cash inflows, such as renting out or running a private business on existing real estate, etc.

Real estate prices usually only increase without decreasing. Therefore, suitable for long-term holding Because in the short term, the price may fluctuate and adjust up and down according to the economic conditions. including the location and environment at that time real estate investment therefore suitable for investors with sufficiently thick capital

Another essential feature of real estate is its very long-life expectancy. Life expectancy in the general economy is set to be around 50 years, but the physical life expectancy of a building, house, or structure is around 100 years. If used to generate income, it will be more worthwhile in the long run.

Type of real estate

Types of real estate are categorized according to their usage into five main groups, which are:

  • Agricultural real estate, such as farmland, plantations, orchards, or land allocated exclusively to agricultural land.
  • Residential real estate such as houses, condominiums, townhouses, flats, apartments, etc.
  • Commercial real estate such as office buildings, shopping malls, hotels, fresh markets, convention centers, commercial buildings, etc.
  • Industrial real estates such as factories or other buildings located in industrial estates
  • Real estate for leisure such as resorts, hotels, etc.

Related Articles

Back to top button