If you are thinking about what kind of investment to push some capital or business diversification, you should seriously consider real estate investment. In simple terms, Real estate is about anything related to land and value-added or associated with the land. Over the years, this sector has continued to thrive successfully and it will not perform any less in the near and far future. It’s also no longer a novel venture as people are increasingly coming to realize that investing in real estate is a big-time jackpot.
When we talk about real estate investment, the decision depends on preference and of course available capital. There are many ways to invest in real estate but there are two most common ways. One of them is to invest by purchasing landed properties and leaving them for years to appreciate before reselling. This called land banking. The second way is to purchase the land, construct house unit(s) on it and then put it out on a rental basis or alternatively sold outright. Another approach to real estate investment is to buy buildings and then renovate them into more standard and recent patterns. They can be rented out or resold as well.
But that’s not all. You can also invest in real estate schemes from reputable real estate and construction companies [links to Achieve]. Any of the methods you choose will definitely be very worthwhile. When it comes to real estate investment, one can hardly run at a loss. Below are some reasons you should invest in real estate as quickly as you can.
The value of the real estate is one that is in the constant appreciation. Once you are able to secure a good landed property, it continues to experience an increase in value and consequently, in pricing. If you stick to lands, the profit margin when reselling can be as good as over 500% and even more, depending on factors like how long you allowed it appreciate and the value placed on the location at the time you’re reselling.
The risks associated with real estate investment are very minimal compared to other ventures. Asides from natural hazards and the likes that can ruin a building, there aren’t many risks or losses one can suffer when they have invested wisely in real estate. And even in instances where the structure has been destroyed, the land still remains, so it can always be improved upon and put into use again. If you invest in landed property, you can just take your mind off it and be at rest assured that your investment is absolutely safe.
The realizable profit from real estate investment is often mind-blowing. Sometimes, one can get back their capital and an excess of over 300% and much more as profits. Though real estate investment requires such huge capital, they also come with highly compensating returns. If your capital can get you started in real estate investment, you should really take that step.
Predictable Income Flow
You can make your real estate investment in a manner that would guarantee a steady flow of income. This particularly applies to raising buildings to be rented for living, business use, or other purposes. The need for housing in Nigeria keeps rising every day so there would always be somebody in need of renting one. Imagine you erect a block of five flats in a great location at the rate of two million naira annually: with an investment like this, you are sure of a certain amount at the due time every year.
If you ever need a massive loan to invest in your business or for whatever reason, the banks would surely require tangible collateral from you. A land or housing often comes through as a great asset for collateral. So you could just purchase that property when you can, perhaps one day it may serve as collateral when you need it the most.
As you can see, the advantages are enormous. So if you’re looking to put some investment in real estate, it is a wise and noble decision. Choose an investment path that best suits you and start investing.