User:Jecabrera/Evolvement of real estate investment

Overview
Real estate investments have been around since earlier times; most societies changed from a nomadic society to a settler society over the period from 30,000 B.C. to 15,000 B.C. This trend gave birth to real estate investments.

Communal Real Estate
Earlier settler societies participated in communal real estate property, which consisted of real estate properties that were shared by the different members of the society. Also another form of non-ownership real estate was the communal construction of new properties, these societies would pull common resources to build the property of a newly couple, the wood and all other materials would provided by the entire community as well as the labor, at no cost to the new couple-this form of communal construction is still used in some small rural communities in some countries.

Real Estate Ownership
Later societies become more agrarian in nature, which lead to the individual ownership of land and subsequently properties. This form of individual ownership for the purpose of residence was still the prevalent form of real estate ownership until the 1960’s. Family would buy a residential real estate property for the sole purpose on living in it. Although commercial real estate had been around for centuries the average American family would not participate in any real estate transaction for the purpose of generating money.

Real Estate Investment
Real estate investment as a mean of generating cash became prevalent after the monetary easing the Federal Reserve put in place in the 1090’s. The lower interest rates permitted any person to buy a residential real estate property, rent it and cover the mortgage and other expenses and still have a profit. This trend changed the usage of residential real estate property from a personal consumption to an investment mechanism. Another form of real estate investment was flipping, the process by which an investor buys a property, makes minor repairs and resells at a later time for a higher price.