Real estate can seem a confusing overall term when you have little or no prior experience in it. However, with most of us needing to take on a mortgage of some kind at some point in our lives, it makes sense to break down the four types of real estate and understand the basic concepts behind each. This should help you find your way into this industry beforehand.
Residential Real Estate
The most common type of real estate, and an area where most of us will have to delve into at some point, is residential real estate. This is simply the purchasing of homes whether new or resales.
Examples here include family homes, townhouses, duplexes, vacation homes, high-value homes, quadplexes, triple-deckers, condos and even co-ops.
Commercial Real Estate
Another well-known type of real estate is commercial real estate, and it is the business side of the industry that it relates to. This includes those properties that are owned with the sole intentions of producing an income.
Examples here include offices, shopping centers and malls, educational buildings, medical buildings and hotels.
Also included in this category are apartment buildings because they are used to generate income for the owners of them.
Industrial Real Estate
Classification is essential when it comes to considering which buildings are industrial real estate. This area of real estate includes warehouses, manufacturing buildings and properties. Such areas can be used for producing, storing, researching and distributing goods.
Land Real Estate
Quite simply, this area of real estate covers land which is vacant, working farms and working ranches. There are further subcategories that exist within the unoccupied land areas including land which is underdeveloped, in the early stages of development or being reused, and site assembly and subdivision.