What Is Real Estate?

What Is Real Estate?

Real Estate is any physical property or improvements affixed to the land, including houses, buildings, landscaping, fencing, wells, etc.

Ways to invest:

• Buy a house, live in it, and sell it later at a profit.

• Buy income property (such as an apartment house or a commercial building) and rent it.

• Buy land and hold it until it rises in value.

Advantage:

• excellent protection against inflation.

Disadvantages:

• Can be difficult to convert into cash.

• A specialized type of investment requiring study and knowledge of the business.

Capital gains: 

• Profits from the sale of capital assets such as stocks, bonds, or Real Estate. These profits are tax-deferred. You don't have to pay the tax on these profits until the asset is sold. Long-term capital gains occur on investments held more than 12 months. Short-term capital gains occur on investments held less than 12 months.

Real Estate Broker:

• real estate salesperson (often called a real estate agent) is a person who acts as an intermediary between sellers and buyers of real estate/real property and attempts to match up sellers who wish to sell and buyers who wish to buy.

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