eal estate refers to Developing countries who are rich
immovable property such as in real estate use this to
land, which also includes attract foreign investments that
rivers or streams that may be can spur economic growth.
part of the land, as well as any However, in recent years,
physical structures that may be economists have noted that the
affixed to the land like houses, key real estate investments into
buildings or commercial developing countries have been
establishments. derailed by the lack of effective
laws to safeguard such
The terms "real estate" and "real investments.
property" are often understood to
mean the same thing, although in The leading source of capital for
some circles, real property purchasing and developing land
refers to the rights of the owner real property is mortgages. These
over the real estate. Both terms are loans that banks grant to
are used mainly in common law, individuals who use the real
which is further divided into property as collateral. Mortgages
property law, the laws that refer are favorable endeavors for banks
specifically to the property, and because they can't lose: either
contract law, the laws which the borrower successfully repays
refer specifically to the rights his loan with interest or if the
of the person over the property. buyer cannot pay his loan, the
bank can claim the rights to the
For centuries, people have viewed property through foreclosure,
land as the primary measure of which is an action that is
wealth. Even today, land decided in a court of law. Once
comprises a large part of the the property is foreclosed, the
fortunes of the wealthiest bank can sell it to recoup its
individuals and nations. loan.
investing in real estate in
This is where economists raise a developing countries. Often, the
howl. An analysis of mortgage loan industry is only
international banking and real open to a select few, mostly
estate laws reveals that, in many engaged in by a cabal of
developing countries, there is no well-connected families who
effective way for a lender to frequently use their social
foreclose. With no legal or connections in matters of
institutional protection, many foreclosure.
investors are discouraged from
About the Author:
Jonathon Hardcastle writes articles on many topics including Real Estate, Investing, and Business
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