can real estate make you richCan real estate make you rich? – Real estate immovable property or any other derivative thereof that fixed to the land and, therefore cannot transferred, hence its name.
The definition of real estate is based on the fact that it closely linked to the land; that is, it is legally inseparable.
These real estate include ships or watercraft where surface is not the ground but the sea.
Real estate considered fixed assets in a company’s accounting, in addition to the improvements we make to its value, such as constructions or extractions that lead to economic activity.
What are real estate deals?
The real estate or real estate business consists of buying a property or property to later sell or rent it.
If the purpose to sell the property, its value expected to increase, and if the intention is to rent it, the required repairs will have to carried out.
Another definition of real estate business is the acquisition of large pieces of land for building by themselves or by a third party such as developers.
Real Estate Examples
We can name as an example real estate land, a flat, the sale of a house, some deeds, a home, a real estate property registry, a mine, a lake, etc.
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To know the operation of a real estate business, it is necessary to classify them into different groups:
- Nature: soil, subsoil, subways, trams, etc.
- Definitive incorporation: building.
- Destination: improvements and reforms.
- Analogy: home loans.
- Access: fixed furniture such as windows or doors.
- Representation: deeds and records.
Real estate businesses are in fashion and offer an investment possibility to earn money, such as residential or non-residential rentals, acquiring property to reform to sell it for a higher price than it costs you, acting as an intermediary between the buyer and the seller, reaches vacation homes.
These are the real estate that offers a good return as an investment.
What is necessary to work as a real estate agent?
Now, if you decide to work as a real estate agent, you must know all the tax and labour obligations you must comply with by current regulations in Spain.
The first thing you must do is register with the Treasury with Model 037; you can do it electronically and, later, register with Social Security, for which you must have the digital certificate installed as a freelancer.
The heading you must choose for Model 037 of the Treasury is 721. Collegiate Agents of Industrial Property and Real Estate Property is considered a professional activity.
Remember that you must indicate if you will carry out the activity in a permanent location, open to the public, or if you will do it at your private home, affecting a few square meters where you carry out your professional activity.
One advantage of exercising the activity of a real estate agent is that you do not need a physical location, but a space to manage your business would suffice. Hence, many of them affect the activity meters of their private home, being able to deduct utility costs of said dwelling, such as electricity, water, telephone, over 30% of the existing proportion between the square meters of the place intended for the activity and the total area.
can real estate make you rich
Finally, remember that when carrying out a professional activity, it means having to issue an invoice to your client for a service provided, reflecting the withholding of personal income tax; if you are a private client, you will not have to do so.
The withholding percentage can 7% or 15%; 7% will be applied during the first year of activity and the following two years.
We hope you are a bit clearer about what it is to work with real estate and what you should keep in mind. It is a tricky business but one that offers excellent benefits.