WHY YOU SHOULD INVEST IN REAL ESTATE
Investing in real estate isn’t just for the rich and famous. Anyone can do it, even if you only have a small down payment. With the right preparation and research, anyone can enjoy the profits real estate offers.
When done correctly, real estate is one of the most popular, profitable, and stable investment choices that can generate a high-profit return. The advantages of investing in real estate include the ability to generate wealth, use equity as leverage, and protect your money from inflation. In addition, there are immeasurable benefits to investing in real estate, like improving your community, providing housing, and building a network.
Who Should Invest in Real Estate?
You don’t have to be a specific type of person or have a particular financial status to invest in real estate. If you desire to grow your portfolio, diversify your investments, and enjoy cash flow and capital gains, you should invest in real estate.
So who should invest in it?
- Investors Looking to Diversify
If you’re already invested in the stock market or other risky assets but want to diversify, branching out into real estate is a great solution. If you invest some money in stocks and additional money in real estate, you’ll lessen the blow if one industry tanks. If you have all your money in the stock market, for example, and it crashes like we’ve seen occur multiple times, you could lose everything. But if you have cash diversified in real estate, you may not lose everything and could even offset the loss of capital gains.
- Anyone Looking to Start Investing
If you haven’t invested yet, real estate is a great place to start. You can even ‘house hack,’ buy a multi-unit property, live in one unit, and rent out the rest. You can even rent out a room in your flat with multiple bedrooms. This allows anyone, even beginners, to start investing in real estate.
- Investors Looking for Cash Flow
Most investments don’t provide cash flow. You invest your money and leave it, not accessing it until you sell the asset, such as stocks. If you invest in buy and hold real estate, you earn cash flow monthly when you have tenants paying rent. The difference between the amount collected and your expenses is your cash flow. You can use it to cover your monthly bills, save for the future, or even create a more extensive real estate portfolio.
5 Reasons to Invest in Real Estate
Now let’s look at the top 8 reasons to invest in real estate to help you decide if it’s right for you.
- It’s a Tangible Asset
When you invest in intangible assets, like stocks or bonds, all you have to show for your investment is a piece of paper. You don’t have ownership of anything. If the stock market crashes, your piece of paper could be worth next to nothing.
If you invest in real estate, you have a tangible asset. Values may increase and decrease throughout the years – there’s no guarantee they will not fall, but tangible assets are worth something. You still have a piece of property to sell should you need to get out of the investment.
Since it’s a tangible asset, it takes a little longer to sell it since you need to work out a deal with a buyer and go through all the legalities. Still, in the end, you’ll walk away with your initial investment and hopefully a capital gain if all goes according to plan.
- Real Estate Values Usually Appreciate
If you invest in a home for long enough, chances are it will appreciate. they aren’t common. Most of the time, buildings and land appreciate, making your investment worth more than you paid for it.
You can also force appreciation by renovating or improving the property. Whether you buy an undervalued property and fix it up to sell, or you renovate a rental property, you can increase the home’s value faster than natural appreciation occurs, giving you an even greater return on your investment.
3. Real Estate Provides Cash Flow
If you invest in a residential or commercial property, you can rent it out and earn monthly/yearly cash flow.
Depending on how you manage your property, real estate can be a passive investment. Working with an established property management company will ensure you earn passive income. This is important if you invest in long-distance real estate. This means you don’t have to do much work and yet enjoy the monthly/yearly passive income and the capital gains when you sell the property.
- It’s a Great Retirement Savings Plan
When you invest in real estate, it’s not liquid. You invest in it for the long term. As time passes, you earn more equity in the home. When you’re in retirement or near it, you can sell or rent the property and use the profits to get you through retirement. Better still, you are assured of a roof over your head.
- You Have Many Options
There’s more than one way to invest in real estate. Many people buy and hold real estate, as it provides a nice monthly cash flow and can help you save for future goals.
If you are a fixer-upper type of person, you may enjoy fixing and flipping. This involves finding undervalued properties, rehabbing them, and selling them. You can then turn around and buy another property, doing it as many times as you want until you reach your earnings goal.
Professional Investment Tip
Speak to a professional for expert advice
Even veteran Real Estate practitioners regularly seek advice from experts on Real Estate related matters so why shouldn’t you? Get expert advice and ensure you transact with only certified Real Estate companies or agents.
As you begin your investment journey, understand that it is a business. Don’t invest for the sake of putting funds aside but to make a profit. Your success will depend on your patience and desire to achieve your goals.
Afriland Properties Plc is a property management, investment, and development company, offering end-to-end services along the real estate value chain, from management to joint-venture investments. We bring innovation to the real estate sector in Nigeria and other African countries by drawing on experience, new competencies, and technology to achieve continuous improvement in service delivery to our clientele.
Let us walk hand in hand with you on your real estate journey, offering expert advice and providing you with the best deals all through the way.
Contact us:
Website: www.afrilandproperties.com
Email: [email protected]
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09166073000
09166074000
Credit: Yahoo Finance