Real Estate

What is Real Estate? Real Estate is the act of buying, selling, and renting property.

Are there Different Types of Real Estate? Yes, there are two primary types of Real Estate. Commercial Real Estate is the act of buying a building or land with the intention to generate income through rent payments and/or the appreciation of the property. Commercial Real Estate encompasses office, retail, industrial, medical or any commercial property. Residential Real Estate is the buying, selling, and renting of homes & apartments for the purpose of residing or renting in it.

What is a Mortgage? A mortgage is a loan that helps someone purchase a property that they could not afford to purchase in one lump sum. The financial institution fronts the money for the property and the purchaser makes monthly payments plus interest to the mortgage lender. The purchaser effectively owns the property even if they are paying a mortgage but if the owner is unable to make mortgage payments to the lender, they default on the loan and the bank assumes ownership of the property. They are then able to sell the property to recover for losses.

Should I rent or buy? There is no one answer to this question and every situation is different. Some of the pros of renting include no major down payment, the flexibility to relocate, no property taxes, and no maintenance costs. Some of the best parts of being a homeowner include building equity in order to resell, stability, personalization, and the ability to pass wealth on to your family. There are many financial factors to weigh that can tell you from a mathematical perspective whether you should rent or buy a home/apartment, but this is a personal decision that should take into account your lifestyle as well.

Use this calculator to help determine whether to buy or rent a house or apartment: https://www.realtor.com/mortgage/tools/rent-or-buy-calculator