Hopewell Valley Student Podcasting Network
Show Name: All About Business
Episode Title: The State of Real Estate
Episode #2
Tweet to be shared on the network’s twitter handle: Check out the latest episode of #allaboutbusiness the podcast on hvspn.com. We talk about real estate, how it works, and how to invest in it.
Record during recitation: You are listening to All About Business, the podcast with your host(s) Prithvi and a guest. We will be hearing from him in segment three, so stay till the end if you want to hear his opinions and views on today’s topic.
Speaking of today's topic, in this episode of All About Business the Podcast we discuss: What is real estate, how it works, and what areas have the potential to grow in value.
Segment 1: What is real estate?
For our first segment I will discuss real estate and give a brief overview on the different types and categories of real estate.
- Real estate is property that consists of land that has both man-made buildings and natural resources on it.
- A real estate business buys, sells, manages, or invests in real estate properties
- There are 5 main types of real estate:
- Residential: Refers to any property that is used for housing. This includes family homes, cooperatives, duplexes, and condos.
- Commercial: Refers to any property that is exclusively used for business purposes. This includes apartment complexes, gas stations, grocery stores, hospitals, hotels, offices, parking facilities, restaurants, shopping centers, stores, and theaters.
- Industrial: Refers to all lands that accommodate industrial-sized activities. These activities include manufacturing, production, distribution, storage, and research and development. Some buildings include factories, power plants, and warehouses.
- Raw land: Refers to undeveloped or agricultural land such as farms, ranches, and timberlands. Can be significantly cheaper and requires no property insurance. But it cannot generate income on its own.
- Special use: Property used by the public like cemeteries, government buildings, libraries, parks, places of worship, and schools.
Segment 2: How does it work?
In this segment we will be discussing how to invest in real estate, what risks are associated with it, but also what rewards you could acquire if you invest in real estate.
- Basically if you buy a property for lets say $200,000 and you wait for a couple months or years and sell it for $400,000 you make a profit of around $200,000. Why were you able to sell it for $200,000 more? It's because the value of the property increased.
- There are many different ways of investing in real estate, here are a few:
- Buy a rental property: Buying a residential or commercial property that you plan on renting to tenants.
- Invest in REIT or a real estate stock: REIT’s are specialized companies that own, operate, manage, or otherwise acquire income from real estate assets. You can also invest in real estate stocks, mutual funds, or ETF’s if you would rather invest in a portfolio rather than a single REIT.
- Rent all or part of your house: Isn’t an official real estate investment but it’s worth mentioning. You could use Airbnb or similar platforms to rent out your home to others when you're away or traveling.
- Fix and flip a house: Fixing and flipping a home refers to buying a home, fixing it, and selling it for a quick profit. It has become popular through the help of several TV shows on the topic. A lot of money can be made in real estate but only if it is done properly. Many risks are involved in flipping houses like unexpected problems and expenses. You would also have to put a lot of work into flipping the house, it's more of a job and if you want to be a passive investor I wouldn’t recommend it.
- Build a new home on spec: It basically means building a house from scratch. It can be a great investment in an area with a limited supply of new homes. It can, in some ways, be less risky than flipping a house, because you don’t have to worry about unexpected repairs and you have a better idea of what it will cost. Some downsides of building a new house are its more time consuming and because of the long time, market fluctuations can occur meaning the area or property can lose value or demand quickly.
- There are many hidden risks to consider when investing in real estate.
- Cons:
- Real Estate requires a lot of money
- Takes a lot of time
- It's a long term investment
- Problematic
- Unique risks
- But there are also many rewards and pros to investing in real estate.
- Pros:
- Real Estate appreciates over time
- Provides steady cash flow
- Real Estate builds equity
- Gives you control
- Provides a hedge against inflation
Segment 3: Areas With Potential
For our final segment we have an HVCHS student, he is experienced and has connections in real estate, our guest for today Vayun says hello/hi. We will be talking about where to buy real estate and areas that have the potential to have high returns in the future.
Prithvi: So Vayun, do you know any places where people should buy real estate now?
Vayun: Says where to buy real estate.
Prithvi: Why do you think those areas will increase in value?
Vayun: Says why.
Prithvi: Do you know anyone in real estate, personally speaking?
Vayun: Says who he knows.
Prithvi: Responds.
Prithvi: What category of real estate do you think will become more profitable in the future?
Vayun: Answers.
Prithvi: Do you think you would want to invest in real estate in the future? If so, why?
Vayun: Answers.
Prithvi: Responds or gives opinion on it as well.
Prithvi: Well thank you Vayun for giving your time, opinions, and helpful views for this segment. And thank you to the listeners for giving your time to listen in on this episode. See you guys next time. Bye/Peace/whatever
Music Credits:
Daydream Dripping by SKIRK
Inside Boy by BARY
Timelapse by MendeX
Forever by Nomyn
SKY by KC5
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