Real Property in the world of the investor is one that is built, attached and or standing on land. The investor who invests into property that is real, will be able to appreciate the potential through understanding its location, and therefore market place, and the type of investment which will indicate the levels of returns, and where those returns should be originating from.
Examples of real property could be a building within a high traffic tourism location such as Florida in the US or Cancun in Mexico. Revenue can be derived from packaged investments that offer solid performing returns from the tourist industry, which can in special circumstances be guaranteed to the investor for a period of several years.
Another form of property that can provide real returns would be a commercial office space located in the heart of a busy commercial sector. As an example Dubai's Business Bay and DIFC provide a wide range of real property that is commercial or retail based and is located in a highly sought after area of the Middle East. As long as the investment is non movable and is built it can be deemed to be a 'real property'.
Interestingly other forms of non movable assets have also been referred to as 'real property' - gas reserves, oil fields and timber forests that are all part of, and attached to, land have been termed real property from the investment perspective.
|
