Part 2 of 3-Part Series
Now that we understand what real estate is, let’s move on to the different classes of it. They are divided into residential, commercial, industrial, special purpose and land. Everyone will have a good idea of the first 3 and what they are, so we’ll do a quick delve into the last 2. Special purpose loosely refers to property used by the public such as government buildings, libraries, cemeteries, places of worship and schools. Land is either undeveloped property/vacant land or agricultural, which is commonly confused to be commercial or industrial.
Chances are you will not be dealing with most of these classes in your real estate investments and holdings. Residential is of course the most common, followed by commercial and then industrial. For the purposes of this article, we won’t dive into the actual investing side of real estate. But real estate is definitely considered a safe and worthy investment. This is because real estate is a necessity and as our populations grow, it becomes more in demand. Although there are vast amounts of untouched land, it is still a finite amount available and this also helps to keep values increasing. If you look back through the past few centuries, there are very few instances when real estate value decreased and these were due to global events such as the Great Recession which toppled the world markets. Ironically the recession was actually started in large part to the housing market in the United States. Even the COVID-19 pandemic has not slowed down the scorching hot real estate market in Canada much. Even now in the midst of it, real estate continues to grow from strength to strength. With Canada being consistently named as one of the top countries in the world to live, immigration will continue to fuel population growth and property demand. Canada’s excellent reputation and quality of life is one of the main reasons the real estate market is so strong and likely will continue to be so.
Part 3 continued next week.