Property in general is what relates to or on something, either as a part of something or as an element of that thing. It’s an unassailable entity; it stands firm and true no matter what happens to it. In its most common sense, it is something created by man. It may be land, buildings, forests, beaches, mountains or anything else we can think of. The property includes not only the tangible things but also the rights to the use of these things and the liability for non-use.
So how do you know if you own a certain piece of property? How do you prove your ownership? If you own a house or land, it means that you have a legal right to live in that property. This right exists even without any ownership certificate. You can build houses, construct factories, shops, warehouses, farms and anything else on the land. All that matters is that you own it legally.
But what about when people want to change the use of a property? This is called ‘infringement’. An example of infringement would be changing the use of a garage into a carport. You cannot put a fence around your property to block off access to your garage. You own it because you are living in it. This is the main difference between what the property is and what a person owns in relation to the law.
Another important difference is that property only really owns the physical structure on it. The land it sits on is owned by the people who live in it. This means that a bank cannot claim a property as their own and take it away from the people living in it. A tax property, on the other hand, claims ownership of the property itself and the right to use it, regardless of other people using it.
In a tax property, what you own is the right to use it, subject to other people using it. So, if you are living in an area where there is much development, you will find that your house may well be a target for development. This is where people who live in the area will come to you and ask if you are willing to let them use your property. If you say yes, they can apply for a development agreement with you. If you say no, then they will go elsewhere, and this is where your property will end up.
In some ways, you have the same rights to your property as any other property owner in a freezone. You are still able to do anything with the property as you wish, including developing it or changing the use of it. The difference is that you are not directly owning the property, instead you are using it for a specific purpose – making money.
How can you make money from your property? There are a number of ways. One way is to rent out your property to others. When you do this, the property works like any other property in that it can be used for a variety of things, including renting to people to live in and on a basis that suits them. You can also sell the property and make money from the sale.
Another way of making money from your property is by holding a property for a period of time. For example, you can stay in a property for a month and rent it out to people. This works in that after the period of time, you can then choose to either leave the property and pocket the money yourself, or to sell it again, making more money.