What Is Real Estate?

What Is Real Estate?

Real estate is the land along with any permanent improvements attached to the land, whether natural or man-made—including water, trees, minerals, buildings, homes, fences, and bridges. Real estate is a form of real property.  It differs from personal property, which are things not permanently attached to the land, such as vehicles, boats, jewelry, furniture, and farm equipment.

KEY TAKEAWAYS

  • Real estate is a class of “real property” that includes land and anything permanently attached to it, whether natural or man-made.
  • There are five main categories of real estate: residential, commercial, industrial, raw land, and special use.
  • You can invest in real estate directly by purchasing a home, rental property or other property, or indirectly through a real estate investment trust (REIT).

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