What is the difference between property investing and real estate investing? Whether you are an investor or a homeowner, it is important that you can differentiate between these two crucial terms.
Real estate refers to the land, and it is the land that will appreciate (go up) in value, as this table demonstrates.
Source: REIA / ABS / RP Data
Property is the building, for example the house, townhouse or apartment, that sits on the land. The property will depreciate in value and, as an investor, depreciation adds to your cash flow.
In this video, MRD founder Nick Lockhart provides a quick, yet detailed explanation of the key differences between property investing and real estate investing.
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