Have you ever heard about redx? You might want to know what real estate is first. Real estate is a legal term that includes land along with anything that stayed still on the land, such as buildings. Real estate is often considered synonymous with real property, in contrast to private property. However, in the use of the technique, some people still prefer the distinction between Real estate, pointing to the ground and objects on it, with real property, pointing to the right of ownership over Real estate. The term Real estate and real property used primarily in common law, while civil law jurisdictions refer to immovable property.
According to the terminology of law in some jurisdictions is an immovable that includes land and any one who is above such as buildings, plants and others. Property in a foreign language is often referred to real property also sometimes called realty. In law, the word is defined as something real objects (Latin: res / rei) that distinguish it from “man”. So the law distinguishes between real property (land and all of a contained thereon) and individual properties (e.g. clothes, furniture, and money).
Real estate investment fund or more commonly known by the term Real Estate Investment Trust, or commonly called REITs is an investment instrument in the form of securities that can be purchased by investors from the companies that publish real estate REITs. These notes are similar to the share certificates reflecting ownership of a particular company. One of the benefits of REITs is the specialized treatment of taxation, where several countries, REITs instrument are free from income tax.
The structure of these REITs is similar to mutual funds but the placement of its assets is in property instruments. As the withdrawal of a company, then these REITs may be “open” that can be offered / traded in the stock market or is “closed”. There is term “for sale by owner (FSBO)” you might get interested in.
However, to enjoy the special treatment, REITs are required to restrict the operations and investments. Chan, Ericksob & Wang (2003) in his book classifies into four major groups of REITs, namely restrictions on: the structure of ownership, type of income that can be produced and the types of assets that can be owned, management structure and financial policies.
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