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Real estate is a piece of territory, along with any additions or improvements made to it. Its value largely depends on its relationship to the rest of the nearby community. Individuals who plan to get involved in the real estate industry will need to learn how they can use their land and raise its value. Most purposes can fall into the following categories.
1. Raw Land
This type of real estate is the most unprocessed and undeveloped compared to its counterparts. The people who purchase raw land usually do so when it is completely vacant and save some money due to the minimal modifications. These properties are primarily used for agriculture (farms, ranches, timberland) or wilderness recreation (fishing, hunting, camping). They can also be untreated and ready for future residential, commercial or industrial use. Due to this wide range of use, anyone from small-time farmers to wealthy businessmen such as Stefan Soloviev can own raw land.
Residential real estate, as the title indicates, is any property used for residential purposes. Most of the time, this territory is developed to make it inhabitable to anyone. The smallest and least developed residential properties are generally mobile homes. Meanwhile, single-family homes are the most common form of residential real estate. Other types of housing buildings in this specific property include condominiums, townhouses, cooperatives, vacation homes and much more. Property owners can live in the location, sell it off for profit or lease it to tenants.
Commercial real estate involves the use of property to make a profit. These pieces of land often house any type of business. Most of these establishments include shopping malls, supermarkets, movie theaters, restaurants and more, as well as office spaces and medical centers. Additions to these locations such as parking spaces, lots and garages are also part of each territory. Properties that are generally used for residential purposes such as apartment buildings and trailer parks are considered commercial since owners can profit from monthly rent.
While industrial real estate is tied to commercial goals, it has a distinctive designation due to its different roles. Industrial property generally manufactures, stores and distributes a business’s goods. Sometimes, industrial facilities are also used to conduct product research. Most of these places are factories and processers, along with their distribution counterparts. Power generating stations also count as production centers. Storage locations include warehouses, refrigerators and data centers.
Real estate involves various types of properties that serve different objectives. People entering the industry can learn more about them to prepare to work on the industry sector that best serves their goals.