Real estate is the single most significant component of wealth in our society. Because of its magnitude, it plays a crucial role in shaping the economic condition of individuals, families, and firms. It can substantially influence a family’s ability to finance its children’s education, health care, and other essential needs. Changes in the value of real estate can dramatically affect the wealth of individuals and businesses and their capacity to grow.
Real estate has been estimated to represent approximately one-half of the world’s total economic wealth. In addition, it is often viewed as an important symbol of strength, stability, and independence. The prominence of real estate means that decisions about it are also important. For an individual, firm, and region, prudent decisions about creating and using real estate assets would bring greater productivity, incredible wealth, and a better set of choices for life.
Use of the Term Real Estate
The term real estate is used in three fundamental ways: