Investing in Real Estate

Real estate is real property consisting of the buildings and land on it, and its accompanying natural resources like water, rocks or crops; immovable land of this kind; a proprietary right vested in it, buildings or residential housing in general; or an interest in it, whether developed or unoccupied. Real estate includes any improvements made to real estate, such as extension, enlargement, remodeling or construction of structures, improvements in real estate, and any improvements to real estate held by one person or more than one person. It also includes any improvements made to real estate owned by a corporation. Real estate includes such land as may be used for either private purposes or for the public improvement of the areas thereof. A mortgage on real estate carries with it the responsibility of repaying the lender when the time of repayment comes, and such obligation usually is in favor of the mortgagor only.

Real estate has a great deal of advantages over the other modes of purchasing property because it is a true test of economic characteristics of a tract of land. There are, of course, many other economic characteristics that can be examined when purchasing property, but real estate is probably the best test. First of all, the price of the property that it sells for is almost always a measure of its value. Secondly, real estate itself often resells for a profitable profit. This means that a piece of land may be bought today at the price it sold for yesterday, and yet the land will sell again in days to come, bringing back with it not only its value, but its profits too.

Investing in real estate makes more sense for most people than investing in stocks or bonds, because buying and then reselling land almost always brings in a greater profit than simply owning the buildings themselves. The same applies to real estate investment, especially when dealing with older properties that are still occupied, although you may need to renovate them a bit first. A lot of property purchased today is still in fairly good condition. If you buy the right pieces of real estate you can get a really great return on your investment, even if it may take you a while to recoup your costs.