Real estate investment can be defined simply as the buying and selling of property. Real estate is basically property consisting of the structures and land on it, and its accompanying natural resources like water, minerals or plants; immovable personal property of this kind; an estate vested in it, for the exclusive use of the owner. Real estate market includes various types of properties, such as apartment buildings, condominiums, town homes, row homes, mobile homes, agricultural constructions, and so on. Real estate market encompasses a huge number of tangible assets.

Residential Real Estate deals with houses, apartments, condos, town homes, row homes and other types of residential properties. This segment of real estate investment deals mostly with properties that are intended to be lived in, rather than rented or sold. The residential segment houses and builds homes for people to live in. This segment also takes care of the financial and legal aspects of making the acquisition and leasing of such properties. The segment houses and builds homes for people to live in.

Industrial Real Estate deals with commercial buildings and spaces used for businesses. This type of real estate deal involves a lot of financial risks, as the properties involve a large amount of capital. The risks in this type of real estate deal include, possible vacancy in the building due to the non-payment of the lease, damage due to fire, weather changes, sabotage, or others. This type of real estate deal has gained popularity over the past few years, as the tenants of these commercial buildings do not have much attachment to the location, and often change addresses quickly. These tenants, as the name suggests, do not occupy the building permanently, but rather only occupy the space for a specified period of time.

The four types of residential real estate include: single-family residences, multi-unit dwellings, duplex residences, and condominiums. Single-family residences are the most popular type of property, with almost three-quarters of all homes being single-family residences. Multi-unit dwellings are generally grouped together in groups of multiple units. Duplex residences are apartment buildings that are located next to one another and contain two to four units. Condominiums are privately owned residential properties where the ownership is held by an individual.

All the types of real estate mentioned above have their own economic characteristics that are important to note. Although the overall economy of the country is booming, the prices of property are not, as they used to be, and there are fewer properties on the market to purchase. The prices are still relatively high, but the number of homes on the market has significantly decreased.

The state of the real estate market is affecting the Gross Domestic Product (GDP). Many economists believe that the increase in the number of new home buildings is having a positive impact on the overall economy. A higher number of new home construction projects is encouraging more people to move into the area, which is creating more local employment. This new level of local employment is helping to generate more tax revenues. Other indicators also point to the positive economic characteristics of the housing market.

By Arlene Huff

Arlene Huff is the founding member of Golden State Online. Before that She was a general assignment reporter. A native Californian, she graduated from the University of California with a degree in medical anthropology and global health. She currently lives in Los Angeles.

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