In today’s world, there are countless businesses to invest in but only a few of these businesses have proven to be worthy investments.
Before investing in a business it is important to be sure that the ability to get the desired returns at the end of the day is possible because what’s a good investment if you can’t look back in years to come and be glad you made such an investment?
Real Estate investment is one of those sound investment options and real estate investors make money through rental income, appreciation and any profit generated by property-dependent business activity.
This article explores the different reasons why real estate investment has continued to be a worthy investment and they are;
People will always need a place to live
Real estate is almost as old as man and will continue to exist as long as man does. With the growing demand for shelter, It will always be in demand. An increase in population means an increase in demand for houses/land and other real properties. It’s almost impossible for the population to decrease so, lucky is the man that has invested or is about to invest in real estate.
Leverage
You can use Real estate investment as leverage for other forms of investment. Real properties such as land can be used as collateral to collect loans from banks or other financial institutions to finance other projects that you might have on your plate.
It is one of the safest investments available
Investing in a business is enough risk and you at least deserve the gift of peace of mind through the journey. Real Estate has a high tangible asset value.
Tangible assets are physical things like land, buildings, computers, etc
Real properties will always be worth something even if it’s cheaper than the price you got it. This is unlike other investments like stock. You can invest half a million in stock and then it crashes. You have zero nairas at the end of the day.
Capital Appreciation.
Real Estate rarely depreciates. It is a good inflation hedge. In instances of rising inflation, the expectation is that rents rise along with the prices of goods and raw materials. The land also increases in value. You can buy land today at the rate of N500, 000 and then in two or three years to come you selling that land for N2M or more.
It can be improved
Real properties can be improved over time to meet current demands. You can decide to build a pool on your property, you can decide to add a garden or even an extra storey to your existing building. The opportunities are endless.
ALSO READ: Wisdom Kwati Smart City Launches Smart City Estates in Adamawa, Set to Deliver Over 15,000 Housing Units
It is an investment that will stand the test of time
The real estate business will continue to grow with man. No matter the level of civilization man reaches, properties that will meet demand will exist. Remember how we started with huts to where we are now. This investment even meets the demand of our current digital world. You can take your real estate business online. Create a website, list your properties and the right buyers will come for you.
Tax benefits
You get a depreciation deduction on your tax. But, remember that real properties rarely depreciate, right? The cost is deducted but, the actual loss never really occurs.
Passive Income
You don’t need to spend your whole day or life doing the real estate business. You can run other businesses on the side and still have steady income coming from your investment.
It’s also your chance to be the reason someone is happy. Imagine developing or being the source of someone’s dream house. Cool, right?
Here’s a bonus
5 Real Estate Investment Opportunities in Nigeria
- Land Reselling (Land Flipping)
As a land reseller, you buy lands or property in a strategic location and then resell them at higher prices when the land has appreciated in value. - Become a property manager
As a property manager, you have certain percentages on every rent you receive. - Open Space Leasing
You can buy land and while you wait for it to appreciate in value, you lease it out to people or businesses for temporary use while your income keeps coming in. - Property Developer
As a property developer, you buy land in a strategic place, develop it into commercial structures, and rent or sell it at higher prices. - Build or purchase rental properties
Here you build or buy properties and in turn rent out to people.
