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Real Estate

Real Estate is the most tangible and enduring investment a person can make in his or her lifetime. Buying a home, farm, ranch, apartment building, or commercial property, has always been encouraged and it makes good business sense.

Most people who buy property, buy it solely as a place to live in and where they can raise a family.

But in a broader sense, it is one of the most important investments you may ever make, and in many ways, it should be treated as a business venture.

Some people buy property and then sell it solely for profit. These people are called real estate investors and the popular term used today is "flipping."

But most people usually buy one or maybe two homes in their lifetime.

Buying property is like having a savings account. You pay your mortgage note every month, and over time, the mortgage is paid down while your property increases in value.

This is called equity buildup. In other words, you make money on your investment while maintaining the right to live in it and enjoy your property or hold it as a rental.

In recent years, property values have risen to such heights that many people of modest means have become financially secure just by virtue of buying property.

Whether it's in a big city, a small or medium town, a farming community or on a ranch, owning real estate is part of the American dream.

Real Estate or "real property" is considered to be land that has been developed for homes, apartments, commercial buildings and industrial structures including trees, walls, fences and water on the surface and minerals, such as gas, coal and oil, below the surface.

Raw land is land that has not been developed or improved having no streets, sewer systems or other utilities.

The word "real" means land that is distinguished from personal property and "estate" means the interest one has in property.

Personal property can become real property when it is affixed to the property, such as the lumber used to build a home, or the concrete used to build a driveway or the foundation of a building.

Personal property becomes a part of real property when it cannot be detached from the real property without causing damage to it.

Real Estate can be divided into small parcels for homes, larger parcels for commercial and industrial uses, and even larger parcels for farms and ranches.

About the author

This information is provided by John M. Roberts of John Roberts Realty, located in Rancho Belago, California. You may contact him at jrobertsrealty@yahoo.com.


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