What is Real Estate?
July 10th, 2010 B. Slade
Real property like land, buildings and land improvements that are utilized by businesses to produce income are considered real estate. Real property in contrast to personal property is held for the purpose of investments. Typically, the increasing value of real estate exceeds the inflation rate but real estate uses an inflation hedge which differs in each locality.
In real estate, there is also leverage because of the high percentage of the investment which can be made with the use of debt funds with down payments usually less than 25 percent. Real estate also provides for capital appreciation and depreciation however, with a large capital investment.