Real estate is property included land and buildings. Real estate also called realty. It can be categorized into three main group. First group is residential, it is designed for people to reside, for examples of residential real estate include houses, condominiums and town homes. The second group is commercial, the businesses usually occupy it for lease the space, for examples of commercial real estate are office buildings, warehouses and retail store buildings. The last group is industrial, it is used for working sector like manufacturing and production, for examples of industrial real estate are factories, farms and mines. Bond is a kind of security and debt instrument created for raising capital. Borrower (issuer of the bond title) …show more content…
Direct real estate investment is called physical real estate investment and refers to buying properties in the traditional sense. Besides that, indirect real estate investment also called as securitized real estate investment (REITs), these shares are then traded on financial or stock exchanges. On the other hand, it refers to buying shares of real estate investment companies. Both forms of investing have various measurement indexes associated with its. The principal benchmark used to measure the performance of direct real estate investment in the United States is the National Council of Real Estate Investment Fiduciaries (NCREIF) …show more content…
At the time, the federal government granted and sold land to private owners for their own use and purpose. This condition are continued as the country expanded to westward, the Homestead Acts is importance and carry out to the society, which enabled the private ownership of United States land in exchange for improving and developing the land. The real estate industry develop from agricultural society to industrial during the transformation of the Industrial Revolution. After the many years, the need for real estate transactions increased when the cities become developed such as office buildings, hotels and restaurants, retail centers, residential housing boomed, and many segment needed to develop, sell, and manage. In short time, the urban sprawl would create the need for suburbs, housings, town centers, and finally is businesses. Nowadays, in the economy, the real estate industry of the United States is one of the most lucrative sectors and it keep on to produce opportunities for interested and motivated individuals. This industry can fluctuate depending on the national and local economies in United States. The federal government draw up the Real Estate Settlement Procedures Act (1974) to make sure that the consumers under a protection against dishonest practices in the real estate industry and provided more helpful information about the cost of the mortgage
Fixing and flipping houses is one of the more popular strategies for making money in the real estate market. It is one of the more looked down on strategies as well, but that is easily overwhelmed by the fact that the good old fix and flip is one of the most profitable strategies in the business.
To become a Real Estate agent, you need to have a high level of education and have to be good with clients. This job includes things such as getting information needed to do the job, perform for or work with the public, resolve conflicts and negotiate with others, convince others to buy goods or change their minds or actions, establish and maintain relationships, and update and use job-related knowledge. The working environment has people working indoors while preparing contracts and other paperwork. They work outdoors while showing and inspecting properties, they must use a vehicle to travel to and from properties. They can share office space with coworkers, they usually have a set schedule each week. You can work full time or part time, but most work 40 hours a week. The personal characteristics you should have are good communication skills with buyers and sellers daily by telephone, e-mail, or in person. Many people also have to write letters and memos on a weekly basis.
With stocks, investors buy a piece of paper stating they own a portion of a company. Therefore, you can actually reach out and touch your assets when you invest in real estate.
In today’s real estate market there is one sensitive issues that has been debated on over the years regarding, zoning and rezoning laws and whether the home owners and investors should receive a compensation for every property affected by the zoning. The zoning laws has been known to either decreases or increases the value of a property. According to David Ling zoning is the regulation on a land use by dividing the community into various parts namely: Residential, commercial, industrial and other districts. (C.Ling, 2015)
When prices increase, the quantity decrease (Graph 1) and new firms enter the market in order to make economic profits. However this does not mean the real estate agents or brokers earn more money. On the contrary, the prices they charge may increase, but the number of houses each sell do not change (Goolsbee, 2005, Online). From this it is evident that the price of products in the real estate market is not affected by the entry of new firms.
American business man Robert Kiyosaki once said, “Real estate investing even on a very small scale, remains a tried and true means of building an individual’s cash flow and wealth”. Real estate and investing in real estate can bring one multiple strands of income. Real estate is not only buying and selling houses. There are many jobs and careers in the real estate field. Individuals are also allowed to fulfil a future in all of these career fields unlike other careers where one may specialize in only one. There are Investors, Contractors, Appraisers, Financers, Property Managers, Designers, Planners, Laborers, Flippers, Founders and Owners of Real estate companies, and the list goes on. These people all may fall into the category of a real estate agent. These individuals are the reason the community is filled with houses, apartments, businesses, firms, and other property. Real estate is forever changing as technology gets better and new natural resources are being found. Real estate is forever and we need real
dealings in rights or access to land and structures. It structures the spine of the urban economy being a settled variable business; thus a productive Real Estate business is generally critical for a well working urban environment. An effective Real Estate business is one that empowers fast improvement and exchange of area, gives sensible access to all wage bunches, earth sound and the framework overseeing the area markets ought to be incorporated with different laws
There is a notable, difference between real estate and real property. Real estate is a term used by real estate agents, bankers, and attorneys and refers to the ownership of land and everything attached to it and the airspace above the land. Whereas, the term real property refers to the ownership rights of the real property
Valuation of real estates or properties basically, refers to appraising a property or a real estate to form an opinion about the value of the property. This value is normally the properties’ market value. Properties are heterogeneous in nature; meaning they are not all identical or alike and thus, they have different values. However, it is possible to get a range for the values. There are some obvious factors like physical location of a property that automatically makes the market value of different properties differ. The materials used on a property and other features also contribute to making property differ in their value. Other factors such as the physical size of a property still determine a property’s market value (Histon Fine Homes, 2008
for investments in real estate. Its major income is rental and it is required to distribute most of its profits to its unit holders. (IRBM, 2012). According to Wong (2004), REITs is a trust that pool funds from investors by acquiring and and operating income generating real estates then distributes the income to investors as dividends. REITs are investment tools to create a flow of funds to the property sector and it has both attributes of stock and bond making it a hybrid of stocks and bonds (Corgel, Mcintosh and Ott,
For business, real property is immovable property that they own. E.g. land, buildings, crops, and mineral rights.
Real estate is a fixed, tangible and immovable asset in form of houses or commercial property (Seldin & Richard 1985). Real estate market involves developing, renting, selling/purchasing and renovating of these assets (houses). Market participants includes developers (contractors, engineers, and so on), facilitators (mortgage companies, real estate brokers, banks, management agents and so on), owners, renters (leasers) and renovators (Seldin & Richard 1985). Like other economic markets, real estate markets have internal and external forces that make impacts in the market (Seldin & Richard 1985).
Bond is a kind of financial contract, which is issued by the government, financial institutions, industrial and commercial enterprises directly to the society to borrow money, issued to the investors, at the same time promised to pay interest at a certain rate and repay the principal according to the agreed conditions. On the other side, a stock is a security issued by a stock company for the purpose of raising funds
In the modern world, financial markets play a significant role, with huge volumes of everyday dealings. They form part of contemporary economic lifestyle and determine the level of success of many people. Humans have always been uncertain of what the future holds and thus, tried to forecast it. The forecast of course cannot omit the likelihood of “easy money” by forecasting the prices of equity markets in the future.
Home loans, or mortgages, use a borrower's home for collateral. This home can be a single-family house up to four-unit property, as well as condominium or cooperative unit. Lenders fund home loan, but both the lender themselves and broker who act on behalf of the lenders originate.