The 6 Categories of Real Estate

When we think of real estate, we typically think of residential properties like houses and apartments. But there is much more to the real estate world than just homes. There are actually six different categories of real estate, each with its own distinct characteristics. In this blog post, we'll take a brief look at all six categories and what sets them apart.

1. Residential Property 

Residential property includes any property that is used for living purposes, whether it be a house, an apartment, a mobile home, or even a duplex. This is the most common type of real estate and what most people think of when they hear the word "real estate." 

2. Commercial Property 

Commercial real estate includes any property that is used for business purposes, such as office buildings, retail stores, warehouses, and factories. These properties are often larger and located in more visible areas than residential properties. 

3. Industrial Property 

Industrial properties are similar to commercial properties in that they are used for business purposes. However, industrial properties are typically larger than commercial properties and are located in areas that are not as visible to the general public. Examples of industrial properties include factories, research laboratories, and power plants. 

4. Agricultural Property 

Agricultural property is any land that is used for farming or ranching purposes. This type of property is usually large in size and is located in rural areas. 

5. Mineral Rights 

Mineral rights refer to the ownership of minerals that are found beneath the surface of a piece of land. The owner of the mineral rights has the right to mine these minerals and sell them for profit. However, the owner does not have the right to drill or mine on the surface of the land itself without the permission of the surface owner. 

6. Residential Income Property 

Residential income property is any property that produces income through renting or leasing units to tenants. This category includes both apartments and single-family homes that are rented out to tenants by their owners. 

These are the six major categories of real estate. As you can see, there is a lot more to it than just homes! If you're interested in entering the world of real estate investing, it's important to familiarize yourself with all six types so that you can make informed investment decisions.