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What is a real estate? A common question people are asking whenever they meet someone offering them real estate services. But truly, what is it? A real estate is a property that is constituted by land, buildings on it, and the natural resources around it; this, such as farmed crops and livestock and water and minerals. Although many people always associate this to "real estate market", on a residential living perspective, real estate can be divided into three categories, the residential, industrial, and commercial. Some examples for residential real estate are town homes, undeveloped land, and condominiums, for industrial real estate are farms, factories, and mines; whereas for commercial are office buildings, warehouses, and retail store buildings. Read further to learn more. 

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"Personal Property vs. Real Property"

To go deeply about real estate, personal property versus real property may come in. So what are the differences between this two?  Well, these two things are not at far with each other. A personal property usually includes intangible properties such as bonds, stocks, and other investments. This may also include chattels like beds, clothes, and computers and fixtures such as washing machines and dish washing machines on your apartment. 

"Investing in a Real Estate Business"

Not like other business investments, real estate businesses' success may depend on where it is located. The business location is an important factor. This is the mere reason why a maxim in the real estate business emerged the "location, location, location". Overlooking on the national and global recession, real estate business and values are truly affected by local factors such as crime rates, educational system qualities, property taxes, and availability of jobs.

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An individual can invest in real estate by acquiring commercial or residential real estate; or, by buying shares in some corporations and organizations. Buying real estate directly may result to exactly two things, to profits or losses.  This is through two avenues: the appreciation of real estate's value and the revenue from rent. Appreciation may come from you developing raw lands or from you developing areas around your property. Rental money, on the other hand, comes from the lands that are already developed into commercial and residential real estate. 

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Further, there are some differences in investing on commercial and residential real estate.  Commercial real estate are more expensive per square meter, and is more heavily regulated that that of the other types of real estate. On the on hand, a residential real estate is less expensive as compared to commercial real estate; this is the reason why small investors prefer this type of real estate when starting to invest. Get in touch with a We buy houses company Indianapolis Indiana option to know more. 

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To learn more about real estate, head over to http://en.wikipedia.org/wiki/Real_estate.