What is Real Estate?
Thursday, January 10th, 2008
The strictest and simplest definition of real estate is that it is the interest in land or a parcel of land. Interest is such a broad term that can refer to either being a landowner or a tenant of the land. As an owner, the interest refers to the full rights accompanied by the ownership of the land including but not limited to the risks and responsibilities that a landowners must shoulder like improvements, taxes, or even damages from accidents and even man-made or natural disasters. However, as a tenant, you assume some of the rights of the landowner which were passed on to you with the consent of the landowner in exchange for a certain amount of financial consideration called rent or lease payment. As a real estate investor, your interests are more likely to lie on purchase or ownership of the land with the intent of earning from it either by leasing it to a tenant or building your own structure like a condominium or apartment high rise and get your return on your investment from revenues generated from rents paid by the tenants of the units.
