What is Real Estate? Real estate is real property consisting of the structures and land on it, and its accompanying natural resources like water, plants or minerals; and its accompanying benefits including financial returns, profit or rate of return. It also includes intangible assets like goodwill, the tangible capital stock held by the seller of the property, and claims or interests vested by a third party on behalf of the seller. Real estate includes land, buildings, outdoor space, fixtures, furniture, and accessories. In the United States, real estate includes the following: residential realty, farm realty, commercial realty, vacant land, manufactured homes, tax liens, residential rentals, farm supplies, and structures designed for housing development.
Why is Real Estate So Important? For many years, most economists have concluded that purchasing a home is a much more rational economic activity than renting. The purchase of a home provides an individual with a significant amount of financial and personal return. Because of these reasons, residential real estate has been one of the most important drivers of the economy. Economists debate the extent to which the act of building new homes and improving existing ones has contributed to the strength of the economy.
One of the most important aspects of the economy is the employment provided by the workforce. The vast majority of people who work in the United States – and most people who do not live in the United States – are employed in the commercial and service sectors of the economy. These workers provide services to other individuals and businesses through the employment of buildings and the provision of labor. The greatest volume of office buildings and industrial real estate in the nation is located in metropolitan areas. The location of these office buildings and industrial real estate properties, as well as the number and proximity of the employees’ jobs, determine the overall economic strength of the local economy.
Another driver of the economy is the value of the various goods and services created by the people and businesses that utilize these structures. In the North America part of the world, the greater New England states are a prime location for the development of the real estate industry. Many people who own property within this area choose to rent their property out to others in the area. Real estate industry professionals refer to this type of leasing as property management. There are many people who own property and want to rent it out to others. In this type of situation, they seek the assistance of property management to manage their properties on their behalf.
Four types of residential real estate include single family dwellings, condominiums, apartments, and townhouses. Single family dwellings are generally self-contained units where the homeowner resides. Condominiums and apartments are developments designed as mixed-use structures where many different types of tenants can live. Finally, the townhouses are apartment buildings that are built in an existing neighborhood.
The fourth type of residential real estate includes sewer systems. Sewer systems play an important role in ensuring cleanliness of public areas. The fourth type of real estate that affects the sewer systems includes the homeowner’s improvements. Many homeowners who own properties within the greater New England states prefer to make improvements to their properties to ensure that the homes are in good condition. As a result, there are many people who choose to hire a company that specializes in sewer system maintenance to make sure that these systems remain in excellent shape.