Characteristics Of Investment Real Estate

I. definition and characteristics of investment real estate

Investment real estate refers to the real estate held for rent or capital appreciation or both.

Two, the scope of investment real estate

Investment real estate mainly includes: the lease of land, the right to use the land that is held and ready for increment, and the leased land.

(1) the leased land use right refers to the land use right obtained by the enterprise through leasing or pferring and leased by operating lease.

The right to the use of land that the enterprise intends to lease but has not yet leased does not belong to this category.

(two) the right to the use of land that is held and ready for increment is the right to use the land acquired by the enterprise after the value added.

The idle land identified according to the relevant regulations of the state does not belong to the right to the use of land pferred after holding and preparing for increment.

(three) buildings already rented

The buildings that have been leased refer to buildings with property rights and leased by operating lease, including buildings built after the completion of construction or development activities.

When judging and confirming the buildings that have been rented, enterprises should grasp the following points:

1. buildings for rent are buildings owned by enterprises.

The buildings that are rented and leased by operating leases are not investment real estates.

2. the building that has been rented is the building that the enterprise has signed the lease agreement with other parties, and agreed to lease by way of operating lease.

Generally speaking, the buildings that are leased out of tenancy should belong to the buildings already rented from the date of the lease period stipulated in the lease agreement.

Under normal circumstances, a written decision of a vacant building, such as a board of directors or similar institution, which is held by an enterprise for the purpose of operating a lease, clearly indicates that it will be used for leasing and holding the intention to change no longer in the short term. Even if the lease agreement has not yet been signed, it should be regarded as an investment real estate.

3. enterprises to lease buildings, and provide relevant assistance to the lessee according to the lease agreement.

In addition, the following items are not investment real estate:

1. the use of real estate is to produce goods, provide services or operate.

2. as a stock of real estate.

A part of a real estate that is used to earn rent or capital appreciation, partly used for the production of goods, to provide services or to operate and manage, to measure or sell separately, to earn rent or to increase capital value, shall be recognized as investment real estate; the part that can not be measured and sold separately or used for rent or capital appreciation is not recognized as an investment real estate.