Main types of real estate

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

The ownership of real estate is one of the most important features of civil society. Ownership of houses, apartments, office premises and plots is registered with the relevant authorities, thus forming cadastral registration. Real estate is usually associated with residential properties, but the range of this category of property is much wider. In addition to the main varieties, there are separate groups of property, the positioning of which often causes difficulties in assessing the market value. Nevertheless, legal practice has developed a set of parameters by which real estate can be relatively accurately classified. The concept and types of this type of property will help to identify the features of financial and residential facilities, as well as determine their investment attractiveness, which is important. But first you need to figure out which objects, in principle, can fit the definition of real estate.

Signs of real estate objects

Specialists identify three basic features by which you can distinguish a property - stationarity, material value and durability. Perhaps the main feature is stationarity, from which the name of this type of property as such comes from. Thischaracteristic means that the object has an inseparable physical connection with the earth's surface. That is, the property is constantly in one place and does not involve moving without destructive processes. Although the most common types of real estate in the Russian Federation do correspond to this feature, this property is gradually softening and exceptions are appearing. At the very least, some kind of borderline categories are emerging, having some of the properties inherent in real estate in its traditional sense.

The next sign is materiality. To begin with, it is worth noting that any object of such property can be assessed in terms of physical characteristics. This can be data on area, location, quality of structures and materials. Taken together, this information gives an idea of the possible benefits of the object - accordingly, its material value arises. As for durability, initially this characteristic is conditional, so the law clarifies it. So, in accordance with the regulations, all types of real estate can also be divided into 6 groups depending on the technical condition and operational resource. The minimum life of real estate is 15 years, and the maximum is 150 years.

Real estate classifications

There are many approaches to the division of real estate according to various criteria. For example, re altors who work with apartments put such parameters as the prestige of the area, the number of rooms, the number of floors and other characteristics in the first place. A slightly different approach is taken if plannedclassify types of real estate intended for commercial use. In this case, the division takes place primarily in terms of liquidity and profitability. However, the physical properties of such objects and their remoteness from the city center to a large extent determine their investment attractiveness in the market.

If we approach the division of property in a broader way, then the main factor in the classification will be the origin. In particular, there are types of real estate objects that were created by nature, as well as with the participation of man. There is a third category - this is real estate, which was created by the efforts of people, but in the process of operation implies an inextricable connection with nature. For example, minerals and land plots act as resources from which real estate objects of natural origin are formed. As a rule, they are initially in state ownership, but can also be transferred to private ownership.

Main types of real estate

Today, all real estate is divided into three main groups - land, commercial facilities and housing. Each category, in turn, has its own classifications and unique features. For example, a land plot can have a different purpose in terms of exploitation. We can say that this is the most controversial type of property, which is explained by a wide range of ways to use it. On the other hand, residential and commercial properties of this kind have their own unique features. For example, such objects may have different degrees of readiness for operation. For land, this property is irrelevant. It can be concluded that the characteristics, types and features of real estate are closely interrelated and help in defining each other. But, if you become more familiar with the differences between each of the main types of real estate, then their specific features will become more pronounced. It is also worth noting that one type of property can be transferred to another. For example, an agricultural plot can be reclassified as land for individual construction, and over time, a country house will appear in its place.

Residential Property

First, you need to define what objects can be called housing. As a rule, this concept means a building with amenities that ensure human habitation. Typically, types of residential real estate differ in technical and operational characteristics. Taken together, the properties of the premises of apartments and houses allow them to be distinguished into the categories of elite, typical, business real estate, etc. Accordingly, the cost also varies depending on whether the property belongs to one of the indicated groups. It also provides for the division of housing into urban and suburban. In the first case, we are usually talking about apartments in separate houses and complexes, and in the second - about cottages. There are also border facilities. For example, townhouses are being built in cities designed to accommodate several families. Although such objects retain the features of city apartments, the owners can have an individual entrance and their own plot.near the house.

A separate condominium is worth considering - this is a type of housing that can be included in different categories. To understand the features of this property, it is worth dividing the types of real estate into individual and general. The condominium is distinguished by the possibility of containing several houses or part of one building, the premises in which will be used by different owners. Also, this type of real estate may include the presence of land plots. That is, in this case, one object may contain real estate units of different classes, which are combined into a common infrastructure.

Types of commercial property

The real estate market usually distinguishes four main categories of commercial properties, which differ in the nature of operation. These are retail, warehouse, office and industrial premises or complexes of areas. Often, one object includes several units of real estate from different categories at once. For example, the retail area is connected to the premises intended for the storage of goods. The common characteristic that unites these categories of objects is the focus on extracting material benefits. We can say that these are types of financial real estate that in one way or another contribute to the accumulation of funds. For example, production complexes are designed for the manufacture of products, warehouses are used to store products ready for sale or further logistics circulation, and retail facilitiessell goods directly. Separately, it is worth highlighting office premises that can perform various tasks from the provision of certain services to the performance of managerial functions - for example, at the same production and retail facilities. Residential real estate can also be considered commercial in some cases. For example, if the owner rents out the area, thus deriving financial profit.

Land as a type of real estate

As noted above, land is a natural property and can be considered as underlying property. Depending on what legal status a particular site has, its intended purpose is determined. The most widespread types of real estate intended for agricultural use. In particular, land is allocated for pastures, arable lands, hayfields, planting of perennial plantations, etc. Plots designed for farming cannot be used, for example, for planting cultivated plants, but barns, bathhouses, hayfields can be built on them and other household infrastructure facilities. The category of summer cottages is also quite popular. They differ in that the owner has the right to build small houses on their area. But such buildings do not belong to residential facilities, that is, they are not designed for permanent residence. These buildings are also subject to certain restrictions in terms of communication support.

Stand alone andcategory of land plots intended for individual construction. If agricultural types of real estate cannot be built up with residential buildings, then objects for individual housing allow the construction of private houses and cottages. It is noteworthy that many modern cottage settlements are organized on former agricultural lands, which today have acquired the status of individual housing construction. A specific and rare group includes sites for scientific stations. Research complexes and bases are organized on such lands.

Mobile Real Estate

This is exactly the case when you can talk about the exception to the rules in the management of real estate properties as such. Mobile objects that belong to real estate are represented by the so-called mobile homes. As a full-fledged real estate object, such structures have recently become widespread in the United States. These types of real estate are less popular in Russia, but they are also used to equip villages located on remote construction sites. The advantages of mobile homes include low cost, undemanding in choosing a construction site, as well as versatility in operation. Among the shortcomings, there is a low level of comfort, average durability and unreliability. This is due to the fact that most of this kind of structures are still not calculated for permanent residence.

There are also legal subtleties that do not allow in every caseconsider such structures as full-fledged real estate. The concept and types of such objects may vary depending on the method of the technical device. So, the execution of documents for the right of ownership today is allowed for mobile structures, which are based on the foundation within the boundaries of the site owned by the owner of the object. In some cases, registration in the "home on wheels" is also allowed. Of course, the arrangement of the foundation for such a structure makes one forget about the properties of mobility, although, if desired, the user can move the house to another place with minimal losses. This category also partially includes sea vessels, which also belong to state real estate, although in fact they have the ability to move.

Economic essence of real estate

Purposeful extraction of material benefits is more characteristic of financial real estate. This is the meaning of the existence of such objects. Commercial types of real estate, its investment properties and characteristics are determined by attractiveness in the market. That is, indicators that determine the liquidity of the object and its possible profitability in the eyes of a potential buyer or tenant. The construction of an apartment building is also an investment project and belongs to the field of commercial real estate.

Specialists in this field are engaged in architectural planning, technical design of the house and carry out its direct construction, focusing onfuture investment attractiveness. But even after the completion of construction, the commissioning of the building and the transition of apartments to the status of residential real estate, investment characteristics are preserved. For example, even the first client of a company that sells the living space of this house may consider the purchase not as a place for their future residence, but as an instrument of financial investment with subsequent profit from the sale.

Types of real estate ownership

The most common form of real estate ownership is private ownership. A document confirming this right allows a specific person to dispose of a certain real estate object at his own discretion. At the same time, there are different types of property ownership in terms of private ownership. Thus, individual and common property are distinguished. The second variety takes place in those cases when one inseparable object implies the presence of two or more owners. In this context, it is worth moving to a joint form of ownership, which is also considered as common, but without allocating specific shares. If it is supposed to divide the property between the owners, then we can talk about another form of ownership - shared. Common property involves the formation of single shares between the owners, but their specific size is not specified. This may be an apartment of the spouses, which was purchased in marriage with common financial resources.

Conclusion

After all, the basis for the separation of objectsreal estate into different types and categories is the nature of use. Based on the specifics of the future destination, architects and builders form the operational qualities of the object, which are laid at the stage of project development and are already implemented at the work site. There are also special legal properties that different types of real estate have. Civil law establishes separate conditions for the maintenance, operation and performance of market transactions for different categories of real estate. For example, taxation may apply differently to residential and commercial real estate. Moreover, even within certain categories, there is often a differentiation in approaches to the formation of regulatory documents regarding the maintenance and service of certain objects. This applies, in particular, to compliance with sanitary standards, public service rules, fire safety issues, etc.