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 (ofte
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