What is property? and it’s types.
Property in terms of real estate can be classified as a piece of land or any building on a piece of land with residing or commercial purposes. types of real estate.
1 Residential real estate
2 Agricultural land
3 Commercial real estate
what we gonna learn in this blog
- What is property?
- Types of property
- Describe types of property in detail
- Top 10 counties with the highest amount of agricultural land
what is property?
Property is a thing or things which belongs to one person or group of persons. properties are of two types Tangible and Intangible properties.
Tangible properties can be classified as things that we can touch. Like if we talk about a house, plots, cars, your mobile and your laptop are some forms of tangible properties.
Intangible properties can be classified as properties that a person or group of persons own and can transfer its own but can’t touch it. For example bonds, partnership, patents, copyrights, and many more.
But in terms of real estate properties can be classified as a piece of land or any house any building for either residential purpose or commercial purpose . Real estate is immovable In nature and it may have one or more than one owner.
types of properties
properties are of three type
- Agricultural land
- Residential real estate
- Commercial real estate
Types of properties explained
In terms of classification we have three types of properties. Agricultural property, Residential property, Commercial property. We will talk about it in detail in this section
Agricultural property is the type of property that is completely devoted to agriculture and its supporting business.
In this type of land, one can do only agricultural activities, like crop production, looking after animal husbandry, poultry farming, fish farming, and many businesses that are related to agriculture.
Agricultural land is very important for a country, not only because we can grow crops in it but because there are a lot of another business that depends on this type of land.
According to research the world has around 11 percent of its land as agricultural land which is around 1.5 billion hectares in area.
According to a report by Trading economy in 2016 India has a total (60.45%) percentage of its land as agricultural land, which is around 159.65 million hectares in area.
If we take a look at our world United States has the highest area as agricultural land around 174.45 million hectares, which is around 44.37% percent of its total area, followed by India with 159.65 million hectares area which is around 60.45% of its total area.
The country which is on number third as per area of agricultural land in Russia with 121.78 million hectares with around 13.29% of its area.
Top 10 counties with the highest amount of agricultural land in million hectare
|Rank||Country||Area in hectare|
|1||United States||174.45 million|
Residential real estate
is the type of property which are for living purpose, we can classify this as a property in which you may have land or house or flats.
In which you can reside or can give it on rent to someone to earn money from that. In residential properties, you may have a plot on which you can build a house or flats or any building which is used strictly for residential purpose.
Not any kind of commercial and agricultural work is allowed on residential land. In most of the case, residential land is a big piece of land which has been cut down into small – small pieces by government and by private builders or developers.
Residential properties have some strict guidelines to follow,
In case of residential property availability of clean drinkable water is a must. One more thing which comes in basic necessity is electricity.
And in case of residential properties you have to check for many things before buying residential properties. Municipality takes care of a lot of important things in the case of residential property.
There is a term called EDC which you have to pay when you buy any plot for residential plots, EDC means external development charges which are paid to municipality of the respective areas, and municipalities take care of the streets and roads of that area and water and electricity.
The price of residential land or house is high if we compare it to agricultural land. We have to pay property tax which is annually for every year, that also we have to submit to the municipality.
There are many taxes that you have to pay when you are going for a residential property, which we will talk about in the next blogs of this series. Things you have to keep in mind before buying a residential property.
Things to keep in mind before buying residential real estate
- You should 1st look about the title of the property, you should check the title from the registrar or by this documents (inteqal and farad)
- Registration certificate ( registry ) you should get a look at the registry of property dimensions of the property mentioned and in reality should be same, confirm the number
- Land-use conversion look at the land conversions certificate, as in India most of the residential property is being sold by changing the use of agricultural property to residential, get the CLU certificate, and do verify it.
- Construction approval after checking all this you should check that is map is approved of the area, if you have the map passed by M.C. then you have the construction approval
- Occupancy certificate should be obtained from authorities before buying
- Identity of the seller in case of individual checks the identity of the seller.
- status of tax payment a buyer should make sure that the seller has paid all the taxes
- RERA compliance developers must have been registered for their project with RERA and the buyer should verify all the provision and clearance for RERA.
Commercial real estate
Commercial property refers to land or building which is used to generate profits. Either from rental income or through starting a business or something. Any kind of property which is used to generate profit is called as commercial properties.
There can be commercial plazas or may be showrooms or even small booths (shops) or even it can be commercial land.
Commercial land has a comparatively very high price compared to agricultural and residential property. these properties have high tax rates also.
Commercial property have to give extra tax in almost everything like the registration rate is higher for commercial properties, and the price of electricity per unit is also very high to residential properties.
Nowadays there are a lot of projects are coming with commercial projects which offer assured returns. Commercial properties have more strict guidelines as compared to any other type of property.
Like as depending on the size of the project they have to keep specific numbers of entry and exit gates, there should be a specific amount of fire extinguishers on every floor and it should also have a fire detection system and some specific fire exits.
Ample parking is also a must needed thing for commercial property.
Things you should keep in mind while buying a commercial property. Buyer should also check all the points to remember for residential in this case also, some additional things to remember is given below
Things to keep in mind before buying commercial real estate
- Location is everything in the case of commercial property. Keep in mind that the location which are you going for will have a very low amount of vacancy
- You must have to check the quality as if there are 2 buildings in the same location but one with better quality the one with better quality will get rented quickly
- Lease structure you should always check lease structure when a company is offering you assured returns.
- There is a structure decided for every year but first read all the terms and conditions because there are alot of companies who have alot of terms and conditions in that case you may not get the lease or may get less amount than mention.
there are a lot of types of examples in properties like crop fields and poultry farms are a good example of agricultural land. Houses and flats are good examples of residential area. shopping plazas, malls and cinemas are a good example of commercial property. These are some most common examples and there are a lot of examples other than these examples.
Property tax in India is paid either yearly or after an interval of six months
Yes you can convert any type of real-estate into any different kind
Generally, it goes to the local government to fund necessary things like schools, police departments and building roads etc.
Circle rate is the minimum price at which sale or purchase of any plot, build up house and any flat can occur. This rate is decided by the state government.