Understanding the Concept of Property

The Definition of Property

Contributors: Nicola Date, Katherine Read. Reviewed by Francis Hui

What's Property? Property Is a Legal Term That Refers to the Interest of a Person in Land or Other Natural Resources. Today, We'll Explore What Property Means.

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What is Property?

Do you think that the definition of the word property is obvious? Well, it’s not!

Property is a far more complicated world than you can imagine, and without the right knowledge, you could end up missing out on life-changing opportunities.

Fear not! We’ll help you discover:

  • The types of properties available
  • Valuations
  • Asset assesment

Financial jargon can be challenging, but at SovereignBoss, we’re here to be your guide.

We have an expert team who’s spent years studying the world of property finance and now we’re ready to share.

Discover now: What the word property means in Dec 2021.

What’s Property?

Property is more than just a dwelling. Instead, it can be anything of value that you own, including stocks, houses, clothes, cars, pets, or land.

For example, I own a car; the car belongs to me because I purchased it with my money. You could also say that the car is mine simply because it’s in my possession.

In a nutshell, it’s something that someone owns. There are many different types of property, including real estate and intellectual property.

The word “property” can also be an abstract idea that refers to the right to use or control something.


Types of Property in Dec 2021

Intangible Property

Intangible property, such as stock and bond certificates, refers to assets that indicate current or potential worth, but don’t have an inherent value.

Even though these are just pieces of paper, they could be worth a lot of money after stocks and bonds have reached their maturity dates.

Other sorts of intangible property, such as a company’s reputation, are hazier and can’t be represented by a written document.

Intellectual property is also a form of intangible property. It refers to the ownership of design concepts, song lyrics, books, and scripts.

Despite the fact that these entities are not corporeal in nature, they may have great worth.


Assessing Property Assets

You could be rich in assets and not even know it!

In Dec 2021, an evaluation is an answer.

Item valuation is the process of determining the worth of a specific asset, such as stocks, options, bonds, buildings, machinery, or land, which is typically done when a firm or asset is being sold, insured, or taken over.

Tangible and intangible assets are 2 types of assets classifications. Valuations can be performed on either an asset or a liability, such as a company’s bonds or your home when you’re opting for an equity release.

Asset Valuation – Tangible Assets

Tangible assets have a physical form. This is like a phone, car, or an expensive piece of jewelry.

Fixed assets, such as structures, land, and machinery, and current assets, such as cash, are 2 types of tangible assets.

Company vehicles, IT equipment, investments, payments, and on-hand stocks are all examples of assets. To figure out a company’s net tangible assets, do the following:

  • The business must examine its balance sheet to determine tangible and intangible assets.
  • Subtract the value of intangible assets from the total asset worth calculation.
  • Subtract the total value of the liabilities from the balance. The net tangible assets, also known as net asset value, are the only remaining assets.

Asset Valuation – Intangible Assets

Intangible assets are assets that don’t have a physical form, but nonetheless bring value to the organisation in the future. Patents, Logos, franchises, and trademarks are examples of intangible assets.

Assume a multinational corporation with $15 billion in assets falls bankrupt one day and has no tangible assets remaining.

It may still be worth something because of its intangible assets, such as its logo and patents, which many investors and other businesses may be interested in purchasing.


In Conclusion

The definition of property is an idea that has evolved over time. And in Dec 2021, things have certainly professed.

As society’s needs and desires change, so do the definitions of what constitutes property. You can also use contract law which allows people to sell rights, but not the actual item itself.

In the world of property, ownership is a fundamental concept. If you own something, it means that no one else can have any claim to it.

If you’re young and recently entering adulthood, it’s best to start considering how you invest in a property from day one.

You are free to do whatever you please with your property, as long as those actions don’t violate someone else’s rights.

Do you own your home and you’re over 55? Learn how you can take advantage of your property with a lifetime mortgage.

Editorial Note: This content has been independently collected by the SovereignBoss advisor team and is offered on a non-advised basis. Sovereignboss may earn a commission on sales made from partner links on this page, but that doesn’t affect our editors’ opinions or evaluations. Learn more about our editorial guidelines.

rachel w

Rachel Wait
Personal Finance Journalist

Rachel is an experienced finance journalist and editor with a particular interest in personal finance and consumer affairs. She has vast experience writing about money issues, property, insurance, and consumer affairs, and you’ll find her articles regularly featured in top media and newspaper publications.
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Written by
John Lawson
Founder SovereignBoss

John is passionate about education and has made it his life-long mission to assist UK citizens on their future financial options, with a specialist interest in equity release, and SovereignBoss is the natural extension of this passion.

Reviewed by
Francis Hui
Senior Risk Manager

Having held various high-level roles across the industry, Francis is truly an expert in aiding UK citizens in their financial decisions and risk analysis. His unique insight and statistical knowledge make him the perfect person to help you take your financial future to the next level.
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Katherine Read
Consumer Affairs Writer

Since joining the editorial team at SovereignBoss, Katherine has become focused on bringing transparency to finances and opportunities for those approaching retirement age. She writes on the topics of equity release, home reversion, and mortgages.

Nicola Date
Writer & Journalist

Nicola is a financial writer for SovereignBoss and is passionate about the opportunities that equity release can open up for homeowners. Her extensive business experience and deep understanding of the industry means that she’s always up-to-date with the latest developments.

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