Real Estate
Also known as: real estate, property, real property
Land, buildings, and related property rights that can store value, produce income, or appreciate over time.
Definition
Real estate is a traditional asset class whose leverage often comes from debt, rent, tax treatment, location scarcity, appreciation, and operating improvements. It is commonly used as a comparison point for digital assets because both can produce income while behaving very differently.
Example
A duplex bought with mortgage financing uses debt to control a larger asset and rent to service the carrying costs.
Important Context
Real estate leverage is often easier to understand because legal ownership and financing markets are mature. Digital assets may be more scalable, but they usually have different risks and transfer mechanics.