Golden Realty Blog

In the dictionary, Real Estate is defined as “property consisting of land and the buildings on it, along with its natural resources such as crops, minerals, or water; immovable property of this nature; an interest vested in this; (also) an item of real property; (more generally) buildings or housing in general.”

Where did this term real estate come from?

The word “Real” in middle English means “the quality of property or things”. We call things ‘real’ that we can touch, smell, see, taste, etc. The Latin root, of ‘real’, (res), translates as “thing”

The word “Estate” is defined as the extent of an owner’s rights with respect to real property.

Some claim the modern term real estate comes from the English feudal principle that in a monarchy, all land was considered the property of the king, making real estate equivalent to “royal estate”. This system revolved around the hierarchy who would allow people to lease land in exchange for goods or services or money.

The earliest document using the term real estate dates back to 1605. It is also noted that the use of the term “real” was used 500 years prior in relation to land and the ownership of it.

The term Real Estate is also used to describe a Profession, and the term “real estate agent” to describe the professional. In 1908, the National Association of REALTORS® was founded for the purpose of “…uniting and effectively exerting a combined influence upon matters affecting real estate interests”. The Code of Ethics was subsequently adopted, followed by registering the marks REALTOR® and REALTORS® with the US Trademark office, and is used to identify real estate agents who are members of the National Association of REALTORS®, and adhere to the strict Code of Ethics.

Real Estate has evolved into a huge force in our economy and around the world and fortunately, it’s not just for Kings any more.

If your New Year’s resolution was to reduce debt, several strategies can help accomplish that goal. But before implementing any strategy, understand the terms of various debt agreements, including any penalties for prepayment, and consult with a tax or accounting professional, say experts with the American Institute of Certified Public Accountants.

Make minimum payments. Credit card companies require borrowers to pay the minimum balance. Paying less than the minimum can result in penalties, increased interest rates and default.

Make additional mortgage payments. To pay down the principal amount faster and reduce total interest paid, consider making additional payments. By paying one-half of the regular monthly mortgage payment every two weeks, for example, you will make the equivalent of 13 monthly payments for the calendar year and reduce the total interest on the loan.

Pay off higher-interest-rate debts first. After making the required minimum payments for each debt, allocate any extra dollars to the debt with the highest interest rate. Or:

Pay off the lowest debt amount first. According to financial expert Dave Ramsey, paying down the lowest balances first, regardless of interest rate, gives borrowers a sense of accomplishment. As each small debt is paid off, it becomes easier to stay motivated to pay down larger debts.

Consolidate loans. It may be possible to pay off multiple high-interest debts by getting a debt consolidation loan, which is often offered at a lower interest rate.

Finally, avoid tapping into a 401K, emergency fund or equity line of credit to pay down debt. Once debts are paid off, put away credit cards, and pay cash for what you need most. With patience, vigilance and a sound action plan, cash-strapped borrowers can learn to live debt-free.