Real Estate's Characteristics

Real estate is legal term that encompasses land along with anything permanently affixed to the land such as buildings, plants and machineries.

In investment world, investors (individuals or institutions) acquire the real estate because of the generated cash flows, not because to occupy for themselves.

In investment wise, the real estate is oulined into four major types as:

• the income properties
• the real estate investment trusts (REITs)
• the mortgage loans
• the mortgage backed securities

Different types of the real estate carry different unique characteristics which can be drawn as for the following:

• the physical characteristics
• immobility
• huge in size
• heterogeneous (means consisting of different kind of real estates)
• durabality
• long production time
• property management
• the economic characteristics
• interest and rights
• decentralized market
• hedge against inflation
• large transaction cost
• supply lag
• cyclical values 
• the legal characteristics
• varying legislations and law
• complicated transaction procedures
• statutorial charges