Real estate is an integral part of our lives, as it is where we live, work, and play. It includes all types of properties, such as residential, commercial, and industrial. Real estate business is also a major contributor to the global economy, with trillions of dollars in investments and transactions each year.
Despite its significance, there are many interesting and lesser-known facts about real estate that are worth exploring. In this blog, we will delve into some of the most intriguing aspects of real estate.
Here at Banke, we have years of experience in real estate and property management. Our team of experts is passionate about all things real estate and has put together this list of 10 facts that you may not know about real estate:
- The economic importance of real estate: Real estate markets are a vital piece of the global economy, contributing more than $1 trillion to the global GDP each year. It also employs millions of people in over 100 countries, making it an important source of employment.
- Real estate investment opportunities: Real estate can offer investors a range of opportunities, from direct investments in properties, such as rental or commercial properties, to indirect investments such as real estate investment trusts (REITs) and exchange-traded funds (ETFs).
- Real estate regulations: Real estate investments are regulated by local, state, and federal governments throughout the world. Regulations typically require certain disclosures or actions to be taken when investing in real estate, such as disclosure of material facts about a property prior to sale. Additionally, some regulations may require certain processes to be followed when transferring or mortgaging real estate.
- Real estate trends: Real estate markets around the world are constantly evolving, with new trends emerging that affect how people buy and sell properties. Some of the major trends currently impacting real estate include the increasing adoption of digital technologies, such as online listing platforms and automated valuation models, and the emergence of impact investing. Additionally, global trends such as urbanization, population growth, and climate change are creating new opportunities for real estate investors.
- Real estate sectors: The real estate sector is divided into several subsectors, including residential, commercial, industrial, and hospitality. Each of these subsectors is further divided into areas such as single-family housing, multifamily housing, office buildings, warehouses, hotels, and resorts. Investors can choose to focus on any one of these sectors or invest across multiple sectors.
- Real estate appraisals: Real estate appraisals are used to determine the value of a property prior to purchasing or selling it. Appraisers look at factors such as location, condition of the property, local economic conditions, market trends, and more to arrive at an estimated value for the property. It is important for investors to understand appraisals in order to make informed decisions about their investments.
- Real estate taxes: Real estate investments are subject to a variety of taxes, depending on the jurisdiction in which they are located. These taxes can include income taxes, capital gains taxes, transfer taxes, and more.
- Real estate agents and brokers: Real estate agents and brokers are professionals who help potential buyers and sellers with all aspects of a real estate transaction, from finding properties to negotiating deals. They also provide expertise on local markets, as well as guidance on financing and legal matters. It is important for investors to work with agents and brokers who are knowledgeable about the local real estate market.
- Real estate crowdfunding: Real estate crowdfunding is a new and growing way to diversify your financial portfolio. It is popular among investors of all ages and investment preferences. Crowdfunding allows you to pool your money with other investors online in order to major purchase real estate (or a portion of real estate) as a group.
- Real estate derivatives: Real estate derivatives, also known as property derivatives, are financial instruments that allow investors to gain exposure to the real estate asset class without actually owning buildings. Instead, they substitute the performance of a real estate return index for the real estate.
How can Banke assist you?
Here at Banke, we are passionate about helping investors navigate the real estate world. We offer a range of services to help you understand the different aspects of real estate investing, from understanding the fundamentals of real estate law to providing tailored advice on the latest market trends.
Real estate is a complex asset class that offers a variety of opportunities for investors. However, it is important to understand the regulations, trends, sectors, appraisal methods, taxes, agents and brokers, crowdfunding options, and derivatives associated with real estate investing before making any investments.
But with the help of Banke, you can make well-informed decisions with ease. Our advisors are highly experienced in all aspects of real estate investing and can help you navigate through the complexities.
Whether you’re looking for residential or commercial investments, Banke has a wide array of options to suit your needs. Moreover, our certified agents are always available to answer any of your questions and provide you with guidance every step of the way. Contact us today to learn more about how Banke can help you invest in real estate.