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Part 1 of 3-Part Series

I

What’s the first thing you think about when asked about real estate and investing? Chances are it’s probably your home, likely among the most important things you own or ever will own. It makes sense, it’s the place or places which you live and sleep, spend most of your time and perhaps raise a family. It many cases your home’s worth exceeds the monetary value assigned to it. There are memories which are priceless and that sentimental value is what is so amazing. However, when it comes to the purposes of investing, your home and real estate is often one of the most integral parts of your portfolio. It is considered quite a stable or risk averse investment because “real property” tends to hold its value very well and is usually quite high value.

Real estate is which is defined as land and anything that is permanently attached to it. This applies to anything which is man-made as well as natural. Land is considered the earth’s surface, everything below it in the ground, and the airspace above. This includes water, minerals, trees etc. Real property refers to the rights, benefits and interests of real estate. These three terms are similar, but have subtle differences which cannot be used interchangeably, however real estate is usually used to encompass the meanings of all three. Altogether real estate would be land, everything above and below, all man made and natural structures, together with the rights to use, sell or lease it.

Part 2 continued next week.