Tangible assets
What are they?
Tangible assets are those that have a physical form and can be touched or quantified. They represent material goods used by businesses or individuals to generate value or carry out economic activities. Generally, these assets include machinery, equipment, inventories, vehicles, and physical properties, among others.
In the real estate sector, tangible assets are fundamental and refer to physical properties such as buildings, land, commercial spaces, offices, or housing. These assets are often considered long-term investments, as they can generate income through rentals or sales and tend to appreciate over time, depending on factors such as location and market conditions.
Tangible assets can be classified as:
Fixed tangible assets: Those intended for long-term use, such as buildings and land.
Current tangible assets: Goods that are consumed or quickly converted into cash, such as inventories.
Key aspects to consider
Tangible assets play an essential role in accounting and in the financial assessment of a company. Their value is reflected on the balance sheet and, in many cases, they can be used as collateral in financial operations. However, they are also subject to depreciation (except for land), which means their book value may decrease over time due to use or wear.
For investors, understanding the nature and value of tangible assets is key to evaluating the financial strength of a company or project. In the real estate sector, these assets represent an opportunity to diversify investment portfolios, balancing the potential for profitability with the inherent stability of real estate.