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March 30, 2017

8 Reasons To Invest In Real Estate

Food, clothing and SHELTER, these are three basic needs of man yesterday, today and tomorrow. Without these basic needs, man could go extinct; just like the dinosaurs that are no more.

 

Real estate investment simply involves the sinking of not just financial resources, but managerial and psychological resources into buildings (for rent or sales) and landed properties. This is an investment that can never get saturated because, realtors as they are called, have areas of specialisation. Some could have expertise of real estate funds manage, some could have expertise in marketing and advertising, while the rest could find themselves in sales and referrals. In other words, real estate investment is multi-faceted and has a large room to accommodate any and everyone who is interested and willing to join the train and this varieties of real investment, gives the general public multiplicity of reasons to investment in real estate.

 

benefits of real estate investment

 

Just as there are flip sides to the coin, there are downsides and advantages when it comes to investing in real estate, of course no one builds their reasons to invest in real estate on the negative outcomes. On that premise, here are bankable reasons to invest in real estate venture

 Why You Need To Invest In Real Estate.

  • Value Appreciation: investing in real estate is more like a investing in a legal Ponzi scheme, except that this particular Ponzi scheme will not run away with your hard earned money. Imagine buying a plot of land today for a said amount today only to sell it for double that price, say in two years’ time. The value of properties especially land, appreciates at a value determined by the development and exposure of its surroundings. They rarely depreciate, unless the existing surroundings are undeveloped instead of developing.

 

  • Flip Time: flipping here refers to the buying of something at a low price today and selling it 2 or 4 times the initial price. There exists a branch of realtors who actually buy ruins, dilapidated buildings or devalued properties at a lower price, then make some upgrades and sell them at very price due to the value of what they have added. These branch of real estate investors are called Real Estate Flippers. Flipping a property pays big time, if you have enough capital, an eagle eye to correct any known errors that exists in the property you intend to flip.

 

  • Total and Full Control: unlike shares and stocks were the prices are determined by uncertain market conditions, the number of shareholders in a company, the profits or loss they make, real estate gives you full and total control of the price of your property. No one determines the price of your own property except you. That is to say you influence both the worth of your asset and the cash flow. Something that is so impossible in some other business ventures.

 

  • Long Term Investment: the economists define long term investments as investments that are made today, which has the propensity to yield more than 50% of the initial capital. Now due to the uncertainty of various economies today, the wise and the right thing to do, is to have your money sunk in something that will yield great returns in the future for family members; especially your unborn or little children. With this in mind, this is the major reason 60% of real estate investments are carried out. It is very much possible, that you might not work forever or your current flourishing business might hit the rocks tomorrow, wouldn’t you want to assure your future, that of your family members and your offspring.

 

  • Other People Pay For Your Investment: if you actually remember the early education days, when we sang about the factors of production and their rewards, you might remember that, the reward for land is rents. This is not just attributed to land alone, when you have building structures erected, people will pay you to make use of your own properties.

 

  • You Enjoy Other People’s Money: from the government’s expenditures and companies who know the usefulness of CSR (Co-operate Social Responsibility), you will actually an increase in the boost and value of your assets, when the aforementioned entities will begin to build value adding social amenities like hospitals, hotels, schools, factories and so on. This will surely go a long way to expose and develop such areas and might be a source of employment for people. Looking at this you actually didn’t break the bank by trying to develop your surroundings.

 

  • The Easiest Investment to Make: many investments today, need training, strategy and serious carefulness so as to avoid pitfalls. Talk about Forex, binary trading and all that, they need serious trainings, guides and walk-throughs so you don’t get burnt. Real estate investment however, is the easiest investment to sink your resources into because, all you need do is to look for properties that are appealing and worth it, make your enquiries and invest. You do not need any training, seminar, well may be some books to sharpen your skills (depending on your expertise or branch of real estate you intend to go into).

 

  • Passive Income: there are two types of income streams that exist; active and passive income. Active income is the kind of income you make while you work constantly, whereas passive income is the type of income you make when you literally read newspapers, drinking or surfing the internet (not talking about drugs or internet frauds). Real estate investment, is more of a passive income investment than any other. If you own a real estate agency, you will be sure to live a life were passive income is the bed rock of your income. No real estate agency but you own properties that are up for rents or you want to begin from scratch like referring buyers to sellers so as to earn commissions.

 

 

If this were a debating session, I’d say ‘with these strong points of mine, I hope I have been able to convince you that, real estate investment is the new gold’.

 

Your comments please!!!.

 

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Kenny Nwakanma


Public Administrator and a salient Entrepreneur who believes so much in financial freedom and that everyone on earth is an entrepreneur in their own way. I run two other blogs. I am equally a real estate investor and a content manager.

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  1. hello, this will be my third attempt to pass the real estate exam. There are at least 6-12 math questions and I never get any correct. do you have any advice or math drills that I can practice to get an idea of what I am doing wrong. most of the questions are about prorating taxes and using certain months or calculating period and I am very confused on the steps. Are the same steps used in every calculating problem? Kirsten

  2. This is quite informative, the real estate market affords the opportunity to reap in high proportions if managed well. It is always a gold mine if the investor is patient.

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