There are two types of real estate. Property is the physical thing and real estate is a larger concept covering all land. Both can be called real estate. The difference between these two terms is where they are located, which one is based on location and which one is a misnomer? Property is an asset, while real estate is a financial investment.
The difference between property and real estate is reflected in the two different types of tax treatment that are available for each type of asset.
Property tax: A property's value is determined by the municipal government, which typically charges property taxes based on fair market value. Property taxes are generally levied on owners, not tenants.
Real estate: Real estate investment trusts (REITs), collectivized real estate investment funds (REIFs), collective trusts owned by investors, and other institutional investors typically purchase properties in bulk and then lease them out to tenants. The value of the buildings is determined by the market price of buildings rather than by fair market value.
Generally speaking, property and real estate are two different things. Property is something tangible, like a house or car, while real estate is an intangible asset that can include anything from houses, apartments and commercial properties to farmland and even natural resources like oil and gas.
Property comes in many forms and can be divided into two main categories: tangible property and intangible property. Tangible property has been defined as something that can be touched and weighed (like land), while intangible property includes things like stocks, bonds and currency.
The list of types of real estate goes on: residential, commercial, industrial and agricultural.
Property is an abstract concept, meaning that it can be anything. It can be a piece of land or real estate, a building, a car, an apartment or house.
Real Estate on the other hand is also abstract but has a different meaning. It is basically everything that is built on top of land (ground) and does not include things like water and air which are natural resources that belong to everyone.
The difference between property and real estate is that the latter is a specific type of business, while the former refers to any tangible thing that can be owned by an individual or a business entity. Property can include land, buildings and vehicles. Real estate refers to things like commercial properties and houses.
So the difference between property and real estate lies in whether or not the property belongs to someone else or not. An object can be considered as property if it belongs to someone else or if its ownership is disputed by another person.
Property and real estate are two words that are often confused with one another, but they do not have the same meaning. Property is something that is owned or possessed. The noun form of this word is a synonym for wealth, possessions, or goods. Real estate refers to the property that people live in or work spaces that people work in as well as things like land, buildings, and houses. It's easy for these two words to be confused, and in most cases you can use them interchangeably.Posted by Balraj Chahal on