Real Estate investment is one of the most lucrative asset investment opportunities available in Nigeria. Many recognize the benefits of investing in an income property to reap financial rewards as well as financial security for a long time.
You can invest in real estate in many ways including buying or selling properties. You can also invest without buying a property. One of the easiest ways to enter the real estate market is to do so as an investor. Today, there are many platforms that crowdsource the investment process. These platforms choose a group of expertly-vetted properties and have investors contribute to a collective pool, with each investor sharing in the reward.
However, if you want to succeed in this industry, you have to know everything about real estate including the benefits you will gain in the short and long term. Here are the 6 major benefits of investing in real estate today.
High Demand for Properties
Everyone wants to live in a comfortable home. In fact, being able to afford property is one of the reasons why people seek high-paying jobs and save. Once you’ve invested in real estate, you can use this to your advantage and attract tenants or homebuyers to your property, depending on whether you wish to retain the house and become a landlord, or sell for a profit.
Regardless of how you’re planning to earn from your real estate investment, you can expect that a lot of people will choose to pay you in exchange for a roof on their heads. Many are looking for easy move-in schemes and ready for occupancy at flexible payment terms. You can start your own rent-to-own or mortgage real estate investment scheme, which can lead to many years of secured income.
Considering how the world is becoming more crowded, people need new houses to stay in and commercial spaces to do business in. Investing in real estate makes you a winner in all angles, as long as you know how to start and manage your investments. You don’t have to be stressed out with property management because technology makes this job a lot easier.
Real Estate Appreciates in Value
If you already are in real estate investment or are just starting out, you do understand that real estate is not a short term investment plan. On the contrary, the benefits of investing in real estate include the appreciation of capital assets (land) over time. In other words, your property’s value will be worth way more 30 years from now, hence why investors are in it for the long run.
Real estate is still a good, long-term investment. If you look back 30 years, real estate is still valued much higher than it was. And if you have tenants paying your mortgage, it makes the investment that much more profitable.
A Way to Diversify Your Portfolio
This is another way to lower some of your risk, especially if you’re investing lots of Naira in other opportunities. Most real estate experts recommend diversifying your portfolio so you won’t lose everything in one fell swoop if the market where you’ve most heavily invested happens to go south. Real estate is an excellent place to park some of your money — a place much safer than many other investments. It can also provide consistent, reliable income — especially rental properties (both residential and commercial). If you’re still working a 9-to-5 job, that can mean additional cash to use toward vacations and nice-to-haves. And if you really build out your portfolio, it could equal an entirely new career.
Investing in Real Estate is Good For Communities
You’re helping local economies and providing homes for people (or at least a place to stay). When you invest in real estate. By investing in affordable housing, maintaining it well, and adding upgrades, you can help provide nice homes for people to live in — some of them unable to afford even a small down payment on a house of their own.
If you’re in a position to buy one or two abandoned or unkempt homes and fix them up, you’d be helping the community.
Real Estate is Improvable
One of the most unique and attractive advantages of real estate is that it is improvable. Because real estate is a tangible asset made of wood, brick, concrete, and glass you can improve the value of any property with some “elbow grease” and “sweat equity”. Whether the repairs are structural or cosmetic, do it yourself or hire someone, the principle is the same. You can make your real estate worth more by improving it.
