Real Estate: The Buzzword
It might be safe to say that we all have at least heard the term Real Estate at least once, or even used it to sound knowledgable in conversation. This industry or “buzzword” can describe pretty much our whole lives. This is what we live in, sleep in, pass down to generations, and sometimes even argue over.
Next time you stop by you’re at home, look up at the ceiling, across at the walls, down at the floor, and out of the windows. There was once an architect who designed that plan, a builder who bought the materials needed, then built them up according to plan, an investor who provided money for the project, and an agent to sell that finished home. All of those roles are different, but they are all apart of Real Estate.
The beauty within Real Estate is that the depths to it are limitless and are only as limited to how creative your mind is. Foundationally, Real Estate is the property consisting of land or buildings. In more depth there is Real Estate Construction, Development, Single Family, Multi Family, Commercial, Industrial, and even Agriculture.
A majority of people that I meet tell me this is something they will get along with later in life and that it seems complex. Let me tell you right now, your thought process needs to be the opposite.
Every year there will be more people that exist on this earth, yet there isn’t more land being discovered on earth. Why? Because this Earth is finite, meaning that we have a limited supply of space. If we begin to apply the supply and demand economics system into course in your ideal location.
Ideal Locaion: Has a Population of 500,000 people
- You: A family of 4, looking to live in a 1,500 sq ft home
- Ideal Location: Has a limited 15 kilometer radius of living space
- Ideal Location: A year later, population increases to 1.25 million people (guess some good jobs showed up)
- You: Now a family of 5, looking to live in a 2,000 sq ft home
- Ideal Location: Still has a 15 kilometer radius living space
Now what do you think happened to your dream 1,500 sqft piece of Real Estate you were thinking about? Most likely increased in price by nearly double due to the influx of population. Let alone, you need a bigger house because you have a bigger family!
Hopefully, now you see a bit of the importance to why this matters so much to understand as early as you can. The web has given us a platform to make inifinite websites and applications. Real Estate begins to draw us back to the reality that our physical land and resources are not infinite, and quite limitied.
But now that its importance has been clarified, lets break down the dinner party buzzword “Real Estate” and how to use it to your advantage.
Real Estate: The Advantage