1) "The productive elements of real estate depend on the voids, not the solids." 2) Real estate is the SPACE - the enclosure that shelter activities
The Meaning of Real estate
1) physical asset 2) right from owning property 3) profession and an industry
Real Estate Physical asset
- The land and all the permanent attachment to the land - Tangible versus intangible - Improvements on the land, improvements to the land - Real Property versus personal property
Real Estate - Ownership rights
Owning real estate give you certain rights: bundle of rights - right to use/occupy/enter it - right to sell it - right to lease it - right to give it away - right to do all or none of these things
bundle of rights
- Fee simple interest: implies absolute ownership - Leased fee and leasehold estates: when a property is leased, the right to use/occupy is transferred to the tenant. The landlord has leased fee interest, and the tenant has a leasehold interest.
Real Estate markets and participants
- Users market: user = owner/renters, suppliers = developers, builders..etc - Capital markets: Real estate as alternative investment - Government: zoning, buildings codes, property taxes...etc.