The Different Types of Real Estate
Real estate is a term that encompasses land and the property that sits on it, including buildings and improvements. It also includes the natural resources on it and any interest a person has in it.
Buying and selling homes is the biggest part of real estate, but the industry has many other branches and facets. It’s important to understand the different types of real estate to be able to make well-informed decisions when it comes to investing in and owning real estate.
Residential Real Estate
Residential real estate is a type of property that is intended to be used by individuals or families for their personal purposes. It can be anything from a single-family home to a multi-unit apartment building.
The industry is a vital component of New York City’s economy, and it’s an important source of revenue for public services such as parks, schools, garbage collection, and much more. It also provides family-sustaining employment to countless New Yorkers, and it plays an essential role in the lives of many people around the city.
Commercial Real Estate
While the majority of people are familiar with residential properties, such as single-family houses and apartments, commercial real estate is a diverse category that includes shopping centers, strip malls, hospitals, colleges, offices, and hotels. It also includes industrial real estate, which includes manufacturing buildings and warehouses as well as properties that are used for research, production, and distribution of products.
Investment in Real Estate
Investing in real estate is a great way to make money on the side or build up assets that can be sold for a profit down the road. It can be done through direct ownership of properties or by purchasing shares in real estate companies, which are known as REITs.
This is a very lucrative and rewarding industry, but it’s important to remember that there are a lot of risks associated with real estate. As such, it’s critical to do your research and work with a trusted real estate agent.
The best way to get started in this field is by obtaining a real estate license. This will allow you to sell, buy, and lease real estate as well as work with a mortgage lender on a transaction.
Once you have your license, it’s a good idea to join the Real Estate Association of New York City (RENA) and start networking with other real estate professionals. This will give you access to industry-leading information, events, and networking opportunities.
If you’re looking to sell a home, you can use a real estate agent to help you market it and negotiate the best possible price. They can also help you find a buyer for your property, so it’s crucial to choose an experienced and trustworthy agent with a proven track record.
You should also consider using a real estate appraiser when selling or buying a home. An appraiser is an independent party that will value your property and verify its worth before approving your loan.