Usually when a person owns land or a property, be it developed or not, it is known as real estate. It is basically a property that is comprised of land and structures (if there are any) as well as all the natural resources such as farm crops or water and mineral deposits that can be found within the said property.
There are about three types of property ownership that you can categorize bases on their individual uses namely residential property ownership which includes undeveloped lands, houses, apartments, or any structure that is available for inhabitation be it long term or short term for non-profit or business use. Commercial real estate refers to office buildings, warehouses of any sort and retail store structures such as malls. The last is industrial real estate which refers to properties that produce goods such as mines, factories and farm lands.
I need a place to stay
Everybody needs a place to stay. Thus the most common type of real estate investment is the home ownership where an individual basically owns the place he or she is living in be it a house, an apartment, a condominium or even a housing complex.
How does one typically “own” a home?
Well basically by buying the said property through various means of payment. You can pay for it up front but since most people don’t actually carry that much money with them, they usually get a mortgage to finance their home purchase then pay the down payment fee then pays for the property monthly at an agreed price for a certain period.
Or if in case you don’t have the option of getting a mortgage, you can try and opt for the “rent-to-own” agreement if the leaser of the said property is willing to do so. It is basically renting the place for a certain amount of time before opting to buy the said property before or when the lease expires. This gives you time to save for the down payment or improve your financial status.
In the market for commercial real estate
If you are in the market to buy or lease real estate for commercial purposes, bear in mind that they are considered quite different from buying residential real estates. Commercial real estates or leases are typically longer compared to its residential counterpart. Aside from the fact that the returns are based on the overall profitability of the location per square foot, the down payment on a mortgage required by the leasers will generally be more compared to that of a residential one.
If ever you are in the market for a space to live or a place to set up shop, take time to browse through your options, acquiring property is a huge investment to make. Take note of the leaser’s prices, agreements and most importantly, location.