Potential business in real estate is concerned with the purchase, ownership, management, and eventual resale of the real estate property, with the goal of making a profit. Real estate, of well-managed, is one of the most viable and profitable businesses today.
The real estate business in the world today is a booming business. Many places in all the major cities in the world have already been identified as commercial land. The property includes restaurant s, hotels, cafes, resorts, private parks, commercial buildings, offices, hospitals, malls, developed residential subdivision areas and all others.
Should you decide to go into real estate business, you can take advantage of the incentives available in every country. There are tax shelters, for instance, and equity build-up and joint capitalization between the private investor and the government. Governments always have the money available for real estate development.
Engaging in a real estate business requires the participation of significant sectors like the property owners and sellers, the real estate brokers, and property buyers. In the United States as in developing countries, the real estate business has been a lucrative one. The real estate business venture is one of the most complex and complicated commercial enterprises in the world today.
The potential is in making a profit by selling land or other types of property like condominium units to buyers who have the money and who are looking for such features. Other investors purchase a hinterland property for a lower price since the land is quite distant from a major urban area and later developing the property into an attractive residential area.
It is necessary for someone new in the real estate to make a business plan. Next, one should get in touch with persons or institutions that deal with real estate. These include the commercial exchange centers where one can take a look at the market listings, the real estate agents, banks, and government agencies.
Knowledge of properties and its commercial transaction also require a knowledge of the country and its people and the specific culture of a place where the property is located. If one is doing real estate business in the United States, the existing laws may vary, for instance in California compared to New York.
There are differences in the valuation of land and other real estate property from one country to another. The assessment of property in most developed countries is higher than in developing countries. There are also existing policies that a businessman going into real estate needs to know. In the Philippines, for instance, foreigners are not allowed purchase and own land. One of the ways by which foreigners can do successful business in real estate investing is by joining existing real estate companies on a partnership basis or by buying and selling condominium units.
Real estate is a trillion dollar business in most developed countries like the United States. In 2009, for instance, the total amount of commercial property in the United States, as reported in the Journal of Real Estate Management was $11 trillion.
Developing properties for resale is big business in the U.S. A 3-bedroom fully furnished house and lot with a lot size of 48,352 square feet and a finished area of 10,027 square feet placed in a garden type of surroundings of 1.11 acres could cost more than $3,900,000 today.