Understanding Real Estate

Real estate is a tangible asset and a type of real property. Real property examples include land, buildings and other improvements, plus the rights of use and enjoyment of that land and all its improvements. Renters and leaseholders may have rights to inhabit land or buildings that are considered a part of their estate, but these rights themselves are not, strictly speaking, considered real estate.

Real property is not the same thing and should not to be confused with personal property. Personal property includes intangible assets like investments, along with tangible assets such as furniture and fixtures like a dishwasher. Also, even renters may claim parts of a home as personal property, provided you bought and installed the property with the lessor's permission.

KEY TAKEAWAYS

  • Real estate is real—that is, tangible—property made up of land as well as anything on it, including buildings, flora and fauna, and natural resources.
  • Real estate has three basic categories: residential, commercial and industrial.
  • When it comes to investing, residential real estate is less expensive and more feasible to individuals, while commercial real estate is more valuable and more stable.
  • As an investment, real estate offers income and capital appreciation.
  • You can invest in real estate directly—buying land or property

https://www.investopedia.com/terms/r/realestate.asp

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