Investing in real estate is a highly profitable business model for the future. Knowing some of the most important terms will help you become better acquainted with people who specialize in the area and, in a short time, will lead you to become an expert. That’s why today we bring you 7 real estate terms you need to master.
Real estate terms you need to know to become a real estate expert.
1. Home Staging
Within the real estate market there is a sub-discipline known as Real Estate Marketing. In this scenario, Home Staging is a practice that consists in the preparation of an apartment or residence through neutral and depersonalized decoration. This manages to create highly attractive spaces for most people.
2. Lien
The concept of lien refers to an obligation that falls on the person acquiring real estate, which must be registered in the Public Registry of Property. In the specific case of the real estate sector, it is known as a real lien.
3. Proptech
The real estate market is a business that has been in existence for a long time, however, in the current era, the following have been implemented important innovations through applied technology and methodology. In this regard, the Proptech are companies that integrate technologies such as Blockchain, Big Data, Artificial Intelligence, Biometrics and more to redefine the real estate business model.
4. Capitalization rate
This concept is the index that represents a ratio between the total annual income of a property and its value. It is generally considered to include the return “from” and “on” the capital invested in the property. The capitalization rate is important if the owner wishes to sell or rent his property in the future.
5. Appendix and amendment
During a purchase, sale or lease negotiation, it is relatively normal for the parties involved to require adjustments to the documentation. When a change is made to a specific part of the contract it is known as an amendment, and when something additional is required to be added to the contract it is known as an addendum.
6. Succession sales
This type of sale occurs when an owner dies without leaving a written legal will (testament). Through a lawsuit it is possible for a real estate attorney to initiate actions for the sale of a specific property. In general, these processes can be complicated and time-consuming.
7. Cadastral value
It is important not to confuse the concept of cadastral value with that of capital gain, as they are two different things, although over time they may complement each other. The cadastral value is the valuation of a property. This process takes into account aspects such as location, dimensions, materials and construction styles. With this value, the property tax to be paid in the following periods can be calculated at a later date.
We hope this information is useful for your foray into the world of real estate. Remember that in Nolab we have luxury properties in the best areas of Mexico City to secure your assets and protect your investment.
