Aside from the traditional investment functions, there are other uses of real estate. Some are used for private residences while others are used for business purposes. Many people purchase real estate as an investment and rent it out to others. Some are pure investors who purchase property to use it for rental income. Other uses include mining, forestry, and agriculture. Developers also own other types of real estate that can be used for business purposes. They develop land and supply renovated properties to the market.
In real estate, location is of primary importance. Location is the economic value of land. There are two types of real estate: residential and commercial. Residential real estate can include single-family homes or apartment buildings. Multi-family properties are small, detached buildings that are not large enough to support multiple dwellings. Industrial and commercial properties are large buildings, which have multiple units and are usually occupied by businesses. A single-family home is considered a residential property. A single-family home is considered a multifamily building. An industrial property is a multi-unit property.
Personal property is property that is not permanently attached to land. Examples include boats, cars, jewelry, furniture, tools, and other personal items. Land can also include undeveloped and developed property. For most people, buying a home is their first experience of buying real estate. The U.S. encourages home ownership through the federal, state, or local governments. The financial industry makes it possible for most people.