You think you already know all you need to know as regards real property investments and the rights surrounding it? That may not be true. The intricacies of the real property investment are quite enormous and that makes it expedient to take cognizance of the novel changes in the ever dynamic field.
This serial stimulus which will be published every Friday aims at providing current and would-be real estate investors, tenants and other real estate enthusiasts with cutting edge information that will not only familiarize them with the heart and soul of real property investment but also enable them to make right decisions.
Real property is one of the important aspects of life as human beings cannot live without shelter. Before you dive into the real property investment market, can you answer some elementary questions like:
- What is real property?
- What does real property investment entail?
- What distinguishes real property from real estate?
- What are the classifications of real estate?
- What is the importance of real property?
- What are the differences among real property, personal property and financial property?
The introductory part of this series will be giving concise but precise answers to the above pertinent questions.
- What is real property? Real property or realty consists of land or buildings. It can be defined as land and all rights of ownership which include; right to possess, lease, sell and enjoy the usage of the land. One may have one or all of these rights. Since real property relates to land, it is necessary to know what constitutes land. Land includes any building and any other thing attached to the earth or permanently fastened to anything so attached but does not include mineral. It covers the earth surface (i.e. the topsoil) the subsoil, things attached to the land e.g. structures, crops, etc. and other incorporeal hereditament enjoyed on land. The above definitions are in accordance with the popular Latin maxim “quic quid plantatur solo solo cedit” which means whatever is affixed to the soil belongs to the soil.
- What does real property investment entail? It entails the buying, selling, managing, developing and leasing of land (real property).
- What distinguishes real property from real estate? While real property includes the right to own and enjoy the usage of landed property, real estate merely refers to the physical object (land and structures).
- What are the classifications of real estate? Classifications of real estate include Residential real property, commercial real property, mixed-use real property, industrial real property and agricultural real property.
- What is the importance of real property? The shelter is one of the basic necessities of life. In law, a man’s house is regarded as his safest refuge. Land/real property is a necessity to every human being since it is on it that he lives and into it he is graved. Human beings use the land for the improvement of their living condition and the defence of himself. It was Andrew Carnegie who said that ninety per cent of all millionaires become so through owning real estate. This means that real property investment is one of the most lucrative investments one can venture into.
- What are the differences between real property, personal property and financial property? Real property or realty as you may call it deals with landed property. On the other hand financial property deals with securities like equities, bonds, debentures, etc. Also, the above types of property are different from personal property in that personal property includes clothes, wristwatches, cars, etc.