Residential Real Estate
Residential real estate is classified on the basis of their connection with the neighboring residences and lands. The legal deed or agreement to occupy a dwelling is known as housing tenure. Housing tenure includes owner occupancy, tenancy, housing cooperative, condominium, public housing, squatting and co housing.
Owner Occupancy :
A person who lives in a house of his own also refers to house ownership. Owner occupancy includes the house and the land where that particular house is located.
Some real estate owners construct the house by occupying the government land which is illegal. However, most of the owners construct the house by purchasing the existed house as a real estate developer or by purchasing from the land from the previous landlords.
When a land owner or a house owner allows some one to use his/her land or house in some way for some time period, then the person who takes for lease from the owner is called as a tenant and the relation between them is called as tenancy. The tenant will pay the rent for the leased property to the owner. Even in a commercial real estate, peoperty will be given on lease for a single organization or to a set of organizations and this process comes under real estate development.
The owner can give his property for lease in two ways :
Monthly Lease :
The tenant should pay rent to the owner on monthly basis.
Fixed term Lease :
Fixed term lease exists for a fixed period of time. Deposit should be paid by the tenant to the owner in this type of lease. The owner will enjoy the interest on this deposit.
Housing Cooperative :
Housing Cooperatives are nothing but the apartments. Housing Cooperatives are quite common in the metropolitan cities in India like Ahmedabad, Mumbai etc., but very rare in rural India. Here owners can sell their share or a flat in the open market, but they have to get the approval from the Cooperative society.
A Housing Cooperative is a legal entity consisting of one or more residential buildings. A person who owns a real property in this cooperative society is often referred to as a share holder. A share holder has a right to occupy one unit or flat subject to the agreement and share the other communal resources available within that society.
There is no much difference in Housing cooperative and Condominiums. It is a form of residential real estate where a specific part of an apartment is owned by an individual and access to the common facilities are jointly owned by all the owners in the society subject to the agreement. A home owners association consisting of board members will maintain the common facilities that are located inside the condominium.
Public Housing :
Public housing is a type of housing tenure in which the property is owned by the government i.e., State Government or Non profit Organizations or by the combination of the two. Their main aim is to provide affordable housing for the public.
Affordable housing is a term used to describe dwelling units whose total housing costs are deemed affordable to a group of people within a specific income range.
Squatting is an act of occupying the real property. A squatter will also use an abandoned space which he/she does not own, rent or having permission to use. Squatting is most common in urban areas rather than rural areas. According to one author there are approximately one billion squatters globally. In Mumbai there are approximately 10 to 12 million house holders and 6 million out of them are squatters. Some squatters possess two or three storied home built of brick and cement and some squatters live on pavement next to road with very little belongings.
Co-housing Community :
A co-housing community composed of private homes with kitchens and some other common facilities like bathrooms, dining rooms, hall etc., A co-housing community is planned, owned and managed by the persons who want more interaction with their neighbors.
Major physical categories of Residences (Dwellings) are mentioned below :
Multi-Unit Dwellings :
An individual unit in a multi unit building. The boundaries of a flat are generally defined by a perimeter of locked or lockable doors. Some of the multi unit dwelling projects will be taken by commercial real estate owners.
A multistoried detached buildings, where each floor is a separate unit.
Terraced house or a Town house
A number of single or multi unit buildings in a continuous row with shared walls and no intervening space.
Building or complex, similar to apartments, owned by individuals. Common grounds are owned and shared jointly.
Semi-Detached Dwellings :
Duplex House :
Two units with one shared wall.
Single Family Detached Home :
A real property or an individual house without having any connections like walls with the neighbor houses.
Note : The size of any land or any type of residence will be measured in square feet and meters.