A look into Real Estate Investment, best investment of all Times

real estate investment

real estate investmentDo you dream of becoming wealthy? Yet you can’t figure out the way to getting there? Although there are many routes to become very wealthy, Real Estate Investment is one sure route that can never disappoint. Reasons abound why real estate is one of the best investment of all times. In the lines that follow, you will get to know the reasons why real estate continues to survive as best investment of all times and how you tap into it.

What is Real Estate and why is real estate ever booming

In a brief definition, we define Real Estate as the acquisition, development, and management of landed properties. Real Estate is ever booming because it provides the solution to man’s basic need of shelter. And man’s need for shelter continues to deepen as he continues to multiply across the surface of the earth. Thus creating a huge demand for the product ‘shelter’, this is the basic product of real estate. According to the laws of economics, the higher the demand for a commodity is, the higher the price. For this single reason, shelter continues to appreciate in some kind of geometric growth. Stressing the need for adequate shelter, the UN-Habitat 2006, indicated that by 2020, 1.4 billion people with be living in slums across the globe.

Low-risk Investment with good return on investment

Real estate can be classified as one investment with lower risk this is so because it consists of landed properties. The risk factors are minimal, for instance; it requires a natural disaster for a landed property to disappear entirely and a huge disaster to get it destroyed and in most cases, insurance can cover for it. There is certainty of return on investment although it may take time in some instances since the return on real estate is normally spread over years of slower returns. Revenue from real estate, however, can last a lifetime. Hence it is referred to in some quarters as an investment into one’s retirement. The most beautiful aspect of real estate investment is that a single property can span several generations; hence it is also referred to as a live investment.

One Time Investment with little or no maintenance cost but yield for a lifetime

Investing in Real Estate is a onetime investment which in most cases requires no additional maintenance fee or cost whereas the property continues to appreciate. For instance, a parcel of land can double its initial value two to three years after, when there is rapid development in the area, the value change could be as huge as ten times the initial value or a double-digit change.

From the above, it is clear that the benefit from real estate investment is overwhelming, but how can you tap into it? Below are some key points you should note when venturing into real estate investment.

Some tips to help you when venturing into real estate investment.

Real Estate is a real-time money spinner, such that the right move can turn you into a wealthy investor within a very short time. Although the risks are minimal, one wrong move can mar your chances of success. For instance, buying a property that may take decades to appreciate, or may not appreciate at all, although this is rare, it does happen. Buying the wrong property which may lead to litigation could also be a terrible mistake. These are some of the few risks in real estate investment, as you read on you will learn how you can avoid these mistakes when investing in real estate.

Caveat Emptor – Buyer Beware:

The phrase let the buyer beware is mostly invoked in real estate, this is so because a lot of persons tends to sell properties that are not theirs. In most cases, the ignorant buyer becomes the victim. But how can a buyer know the rightful owner of a property? The buyers have to rely on experts in the various fields of real estate, like; a property lawyer who is used to property documentation is the one that can distinguish between a property document that is fake or genuine. A land surveyor, who can tell if the measurements are accurate or not or whether the location corresponds to the records on the documents. It is very important to involve these experts in every property transaction so as to be on the safer side.

Buy Virgin Properties

One way to develop fast in real estate investment is to buy virgin properties. Virgin properties imply buying from the original owners, like acquiring a piece of land from the government or the native authorities whoever is in charge. This kind of property can be held for some time and then resold to another buyer, especially when there is rapid development in the area.

Become a Property developer

Another way to benefit from real estate is by becoming a property developer, i.e. you buy properties and improve on them before selling. This way, you increase the net worth of the property, and you stand the chance of making more return. As a property developer, you can purchase virgin lands, uncompleted buildings or even dilapidated buildings. Thereafter you renovate or develop these properties. As a property developer, you can also undertake property development projects for clients. You don’t have to be a construction engineer to become a property developer, all you need is to ensure you employ the services of the right people when constructing any structure.

Scout for soon to develop Areas/Location

Buying or developing a property in a soon to develop location is one way to spin huge income in real estate. Investing in such area gives you the opportunity to invest with minimal capital and wait for a very short period and then reap an abundant harvest. This is so because; estate properties can appreciate very fast within a short period of time. You can imagine buying a property at 5 digits and dispose same at 7/8 digits within a period of one year.

Read also: Why Affordable Housing may remain a mirage