In this article, I will share with you what is real estate, why they call it so, and the origin of the name “Real Estate.” You will know everything after reading this short article, including:
- What real estate exactly is
- How the name real estate came into existence
- What years was it when the revolution took place
- Why do the Royals allow this in the first place
- Who was the world’s first real estate millionaire
- How he used real estate to become rich
I will share all the history that very few people know about the real estate industry.
What is Real Estate Exactly?
So what is real estate? A long time ago, there were only two types of people, the Royals, and the farmers, nothing like today, the Rich, the Middle class, and the Poor.
The Royals of those countries own all the lands, and the Farmers just did the farming on them by giving a small portion of their corn or whatever they were growing in the field as taxes.
In return, the Royals protect all the crops from outsider and insider attacks. They have implemented some soldiers to protect all those lands. If anyone is trying to harm those fields, they must bring them to justice.
Lands were the private property of the Royals only. That is why the name Royal Estate came fourth in that era, ‘Royal’s Estate, an estate by the royals.
But, How does it Evolve from the Royal’s Estate?
Before you know what is real estate, you must know the history behind the name that is lost in the history books. Here is the story:
After the year 1500, the demand for land increases rapidly because of the Industrial Revolution. Everyone wants a piece of land to start their ventures.
- The demand for those lands was high, but the supply was limited. You can not produce more land like an apartment.
- People started to treat the land like Gold.
- They had become crazy about it.
I think that was the first time the average man was allowed to buy lands from the Lords to establish an industry or do business of any kind.
Then more and more people started to buy lands from the Royals. In that process, the Royals started to lose the monopoly on land ownership. After some time, the Royals did not have enough land to claim the power on it.
Then, step-by-step, the name changed to Real Estate, from Royal Estate to Real Estate, an estate everybody can own, touch, feel, and do whatever they want to.
The Best Part of It
The best part of these lands was that no one can steal your wealth as some did by snatching Gold from the travelers back in time. If you buy land with the Gold you have, you will create wealth and security from Pirates. That thing also boosted the land purchases back at that time.
Some traders always complain that the bandits looted their Gold and thing they had, but they manage to escape somehow. They don’t want to do business anymore in this region, as the no of bandits is increasing rapidly.
But now, if they invest that money in land and come back to it after some years, he can sell the land and then recover his money. Problem solved.
World First Millionaire from Real Estate
Did you know that the first self-made millionaire came from the real estate industry? In 1800, the world has seen its first self-made millionaire via real estate. He become rich by developing Arizona in the United States, changing it into a new City from a rural village. His name was John Jacob Astor.
At first, he was a fur trader in the US. John made his living in that business. He saw an opportunity in the city that needed to be fulfilled. He saw that Arizona place is on the rise, people are moving to the city to live in the world, and there was a shortage of houses to live in.
So, he decides to build rental properties in that area with the help of his few friends. John started to build apartment houses one by one and people started to live in them for a monthly fee.
Mr. Astor saw it was working. He borrowed more money from an investor and started to build more houses in that city. He builds more buildings. More people started to shift to Arizona. In that process, he becomes a rich self-made man.
John Jacob Astor was worth $20 Million back then. In today’s it would be $700 Million. He was a self-made millionaire first in the whole world. From fur trading to a real estate investor and developer.
The Real History of Real Estate
History has proven that Real Estate has made more millionaires than any industry. Just a piece of land can make you a fortune. Have not you heard these famous quotes on real estate:
- Real estate can’t be lost or stolen.
- If you don’t own a home, buy one now.
- Owning a home is a keystone of wealth, both financial and emotional security.
- 90% of millionaires become rich by owning a piece of land.
- Buy land they are not making it.
All these quotes are from people who made it big in the real estate industry. Real estate can make you ultra rich if you invest here wisely. That is truly real estate, an estate that everybody needs.
So, what is real estate? It’s a Royal Estate. I have researched a lot to get his knowledge, but there was not a single article that explains this.
I have read many books and found something that needs to share. Hope you loved the article. Share it with your friends. Thank you for your time.
Frequently Asked Questions (FAQ)
What is real estate?
Real estate means Royal’s Estate. A piece of estate that is only owned by royals, and that is how the name comes into existence.
How we got the name real estate?
A long time ago, there were the Royals and the farmers. The royals owns all the land and named it the land of the Royals or Royal Estate. Then it converted to Real Estate.
Who was the first real estate millionaire?
John Jacob Astor was the first self-made real estate millionaire who built Arizona in the 1800s.