A Guide to Real Estate Investing
Real estate is the exchange of land for money, where one party (asset) purchases a definite parcel of land from another party (asset). Real estate includes immovable property consisting of the structures on it and the accompanying natural resources like metals, minerals or water; private immovable property, which is not intended to be developed; buildings; and an equitable right to use, enjoy, and transfer the immovable properties held by one party. There are also some exemptions under real estate law, which are not included in the definition. Examples of these include the ownership of residential or commercial real estate by a foreign investor.
Real Estate agents play an important role in facilitating the purchase, sale and management of real estate by both individuals and institutional clients. They work closely with real estate investors to identify investment opportunities and help them find qualified buyers and sellers. Real Estate agents also act as consultants and advisers to real estate investors. Real Estate agents are licensed by the government to perform a number of tasks relating to real estate transactions, and have to be insured.
There are four types of investors who can become involved in Real Estate investment: Residential Real Estate investors; Commercial Real Estate investors; Real Estate Flotation investors; and Debt Mutual Funds. The fourth type of investor is not a person but an institution, company or an agency. Such investors can include banks, insurance companies, pension funds, and other financial institutions. These investors usually seek to make money from the sale or rental of property. It is important to note that real estate investing is different from stock investing, real estate investing does involve risks and one should always consult a financial expert on how to go about it.
Property management involves all the tasks required for property owners to ensure that their property is well managed. There are many factors that impact a property management company. Some of these factors include demographics, supply and demand, taxes and regulations, land use and development issues and competition from other real estate companies. The property management companies employ people who manage the property on behalf of the owners.
Property Management companies have many sub categories. These categories include environmental compliance; management services including inspection services, management training programs and financing services, including land purchase and sales and development costs, marketing and advertising campaigns, development planning, property tax and insurance, property management law and regulations, tax records and land classification. Some Real Estate agents work with local property management companies.
Buying, selling, renting and managing rental property can be very lucrative and profitable. If you want to invest in Real Estate, there are many things to consider before buying or renting property. First and foremost is whether the Real Estate investment will give you good returns. Other things to consider are location of the Real Estate investment such as the proximity to the water source, schools, hospitals and markets, tax benefits etc. You should also choose a Real Estate agent who has years of experience in the Real Estate market.