The question of why one should own real estate is in stark contrast to the answers that I have available for reading, in this article. This is because the question of why someone should own real estate sounds rather amusing, given the value that can be obtained from owning one, and the answers of why one should own real estate are so serious and clear in showing the values that are on offer from any individual’s ownership of such. Let us proceed.
WHAT IS REAL ESTATE
In simple terms, real estate is property. This property which is something owned, coupled with rights of ownership, could be housing, land, buildings on it, along with natural or mineral resources on it or buried beneath it. In Real estate the rights to ownership maybe more valuable than the property itself, as it gives the legitimacy especially legally of owning a piece of let’s say land, apartment or condo. These rights may include the rights to occupy, rent out, control and alter, use transfer property and so on.
WHAT ARE THE BENEFITS OF OWNING REAL ESTATE
To bury in the need and benefits of owning real estate into one’s mind-set, the following points are on offer. These points try to develop in you the necessity and the idea of needing real estate, with different brief explanatory examples that show the bigger picture of real estate ownership. The examples are thus.
REAL ESTATE AS A FORM OF SHELTER
Well except you’re into the idea of scavenging and living directly under Mother Nature’s conditions such as rainfall, snowfall, sunshine etc., you need real estate in the form of a house with a roof over your head to keep you alive longer and better. Real Estate examples for shelter purposes include apartments, multi-family homes, duplexes, mobile homes (i.e. tents), house boats or houses for rent in Bangalore, Mumbai or any other cities.
REAL ESTATE AS A PLACE FOR STARTING A FAMILY
We all know how that the kind of environment, one resides in either improves or derails one’s performance or progress going forward, and for newly starting families, real estate of good quality can help build up the levels comfort that builds happiness, enthusiasm and safety, that help in the growth. If you raise children in a dump or ghetto especially when you can afford quality real estate, you expose the kid to mind-set derailing consequences such as poor attention to schooling, poor development and many others.
REAL ESTATE AS A FORM OF INCOME
Ownership of land and housing, may not be used directly by the real estate owner, but could be given out in form of rent at a particular price to individual home seekers, businesses etc., which is in the best interest of the real estate owner. In some cases the owner may lease out the resources on the land to companies to produce, process, extract, or refine, and get a royalty out of such transaction. The real estate owner may use the generated revenue for day to day upkeep, invest them in stocks bonds or mutual funds, or re-invest it in more real estate, which is good for both home seekers and the economy at large.
REAL ESTATE AS A FORM OF INVESTMENT
One thing about real estate especially land, is the tendency for appreciation in value overtime. Someone may put his or her investment into the housing market, pay for a mortgage and gain from returns the market has on offer, for example an individual purchasing a home for $100,000 and using just $20,000 of his or her money while borrowing the rest, if in 5years that home is worth $110,000, the home has appreciated 10% by going up $10,000 in value, if he or she sells the home and pays back the mortgage he would end up with $30,000(not including commissions)which represents a 5% return on his or her investment. One should know that it investing there exist a lot of risk, which when taken in a more rational and calculated manner accounts for muchyield than disaster in the ever volatile housing markets.
Real estate is one of the leading investments as well as in the world. One good thing about the freehold ownership is that it is not restricted to citizens only. This has been one of the factors that have led to tremendous market in commercial projects. In the recent past, world class construction companies are working on amazing residential and commercial projects and this is educing great market in this department.