Real estate investing is a process in which real property is treated as a tool for gaining profit, i.e. it is bought, sold, owned, managed and/or rented with the aim of generating income. Real estate investing is different from the other forms of investing in that property market is usually less organized and requires a lot more research to be conducted for the decisions to be efficient. Besides that, unlike other investment instruments, real estate value is highly dependent not only on the inherent properties of an object (which can be influenced), but also on its surroundings and general prestige (which cannot be influenced as easily). This also adds some complexity to the matter.
If you own the house/apartment which you live in, it is also technically considered to be an investment, because it is a part of your total assets. At any point it can be sold or rented out, this becoming an apparent source of income. For many people this is where real estate investing ends. This article, however, explores the possibilities of buying property besides your main residence with the sole aim of generating income. For this purpose, the two major categories are residential and commercial property investments.
