Uncategorized

5 Essential Features That Make Real Estate Investing Profitable

Every now and then persons trying to make up their minds where to put their money ask me if real estate ventures are more or less profitable, compared to other businesses opportunities around.

My response is always that apart from its potential for yielding significant profits, investing in real estate often confers long terms benefits.

I discuss five such advantages below:

1. You Can Refurbish (to Enhance the Value of) Real Estate
After you buy a stock, you hold it for a period of time and hopefully sell it for a profit. The success of the stock depends on company management and their corporate success, which is out of your control.

Unlike other conventional investment instruments, like stocks, for instance, whose rate of returns, depend on third parties (e.g. company management), real estate investments are directly under your control.

Even though you will not be able to control changes that may occur in demographic and economic aspects, or impact of nature induced changes, there are many other aspects that you can control, to boost the returns on your investment in it.

Examples include aspects relating to adding repairs, or improvements/enhancements to the physical property and tenants you allow to live in it.

If you do it right, the value of your investment will grow, resulting in increased wealth for you.

2. Real Estate Investing, When Done Right, is Proven to be Profitable Even During a Recession (like the one we’re in right now)
It has on several occasions, been used to effect a bail out, from financial setbacks, such as those that many have experienced during the economic downturn happening in Nigeria today.

A considerable number of clients have confided in me that due to the present economic situation, they are not sure of profitable channels to invest their money. Some of them are done with bonds and treasury bills, but are in dire need of a new investment.

We had extensive discussions, and based on my expertise as a real estate consultant, I recommended landed property investment, as the most suitable and secure alternative channel of investment.

This is because, even if all businesses crumble, land will always appreciate greatly. Then to drive my point home, I ended by sharing the following apt quote, by a former American president:

“Real estate can’t be lost, nor carried away, managed with reasonable care, it’s about the safest investment in the world” – Franklin Roosevelt.
Not surprisingly, the client chose to take my advice – and signed up: it was the obvious, common sense thing to do!

3. Real Estate Investments Are Immune to Inflation
In other words, investing your money in ownership of viable real estate can protect you from the harsh effects that inflation usually has on other conventional investments.

This is because the value of real estate generally tends to rise in positive correlation with inflationary pressures. This is why property values and rental rates go up with rising inflation.

The nature of real estate, therefore affords owners the unique advantage of being able to adjust the rates they offer, to match inflation.

Monthly rents for example can be raised to compensate for inflation – thus providing a cushion effect against inflation induced losses that other monetary investments suffer.

4. Real Estate is Uniquely for Being Universally Acceptable as Collateral, Towards Securing Funding from Banks
Today, real estate in form of either building or lands, with proper titles (i.e. Certificate of Occupancy – aka “C of O”) is the most recognized and accepted form of collateral in Nigeria – and some other parts of the world.

It has the unique feature of being able to protect the interests of both the borrower and the bank (that’s doing the lending), so that funds can be released i.e. after due verification, and terms and conditions are agreed.

This is one of the key advantages a private C of O has over the global C of O, because the former (i.e. private C of O) is what will be needed by the intending borrower, in the event of any future financial dealings with bank in Nigeria.

5. Real Estate Investing Allows Use of Other People’s Money
In other words, you can do it even if you do not have enough money. You just need to know how.

This is possible because real estate is physical property or what is called a hard asset. That is an attribute that makes it attractive to financiers i.e. people with money to invest.

This is why many times real estate products are bought with debt – unlike conventional investment products like stocks which are NOT tangible, and therefore perceived as being more risky to invest in.

So real estate investment can be done using cash or mortgage financing. In the latter case, payments can be so arranged to allow payment of low initial sums, provided by you or a willing third party.

Those payments will be happening on landed property which will continue increasing in value throughout the duration of such payments – and indeed beyond. That further inspires confidence in the minds of those financing the acquisition, that their investment is safe.
If you enjoyed this post and you would certainly such as to receive more information relating to treasure at tampines location kindly go to our website.

Little wonder that real estate investing has continued to prosper for so long!

[A WORD OF CAUTION] The listed benefits notwithstanding, I still tell prospective investors that due diligence is a crucial requirement for succeeding.

Whether you do everything yourself or use industry professionals like me, it is imperative that you exercise caution and arm yourself with relevant information and education.

This is something I advice my clients to do all the time, so they can make good decisions in investing.

The importance of the above cannot be overstated, especially in Lagos where quite a number of individuals, have had their fingers badly burnt, because they failed to take the needed precautions.

82 COMMENTS

  1. After I originally left a comment I seem
    to have clicked on the -Notify me when new comments are
    added- checkbox and now every time a comment is added I recieve four
    emails with the same comment. Is there a way you can remove me from that
    service? Thank you!

  2. You could certainly see your enthusiasm in the work you write.
    The arena hopes for even more passionate writers such as you who aren’t afraid to say how they believe.
    Always go after your heart.

  3. It is perfect time to make some plans for the longer term and it is time to be happy.
    I’ve read this publish and if I may I wish to recommend you few interesting issues or suggestions.
    Perhaps you can write next articles referring to this article.
    I desire to learn more things about it!

  4. Hi! This is my 1st comment here so I just wanted to give a quick shout out and tell you I truly enjoy reading through your blog posts.
    Can you suggest any other blogs/websites/forums that cover the same subjects?
    Thank you so much!

  5. Howdy! This is my first visit to your blog! We are a collection of volunteers and starting a new project in a
    community in the same niche. Your blog provided us valuable
    information to work on. You have done a extraordinary job!

  6. Pretty great post. I just stumbled upon your blog and wished to say that I have truly loved browsing your weblog
    posts. After all I’ll be subscribing to your rss feed and I
    hope you write once more very soon!

  7. Unquestionably believe that which you said. Your favorite reason appeared to be
    on the web the easiest thing to be aware of.
    I say to you, I certainly get annoyed while people
    think about worries that they just don’t know about. You managed to hit the nail upon the top and also defined out the whole
    thing without having side-effects , people can take a signal.
    Will probably be back to get more. Thanks

  8. Hi, I do think this is an excellent website. I stumbledupon it 😉 I may revisit yet again since I saved
    as a favorite it. Money and freedom is the greatest way to change, may you
    be rich and continue to help others.

  9. This is really fascinating, You’re a very professional blogger.
    I’ve joined your feed and look forward to in quest of more of your
    wonderful post. Also, I’ve shared your web site in my social networks

  10. Good day! I just want to give you a big thumbs up for your great information you have got here on this
    post. I will be coming back to your website for more soon.

  11. Hmm it looks like your website ate my first comment (it was extremely long) so I
    guess I’ll just sum it up what I had written and say, I’m
    thoroughly enjoying your blog. I as well am an aspiring blog writer but I’m still
    new to the whole thing. Do you have any tips and hints for
    inexperienced blog writers? I’d definitely appreciate
    it.

  12. Your style is very unique in comparison to other people I have read stuff from.

    Thank you for posting when you’ve got the opportunity, Guess I
    will just book mark this site.

  13. What’s Going down i’m new to this, I stumbled upon this
    I’ve discovered It absolutely useful and it has helped me out loads.
    I am hoping to give a contribution & assist other
    customers like its helped me. Great job.

  14. Hey There. I found your blog using msn. This is a really well written article.
    I’ll make sure to bookmark it and return to read more of
    your useful info. Thanks for the post. I’ll definitely comeback.

  15. It’s really a nice and useful piece of info. I’m happy that you just shared this helpful
    information with us. Please keep us informed
    like this. Thank you for sharing.

  16. After exploring a few of the blog articles on your website, I really appreciate your way of writing a blog.
    I saved it to my bookmark website list and will be checking back in the near future.
    Take a look at my website too and let me know what you think.

  17. Great items from you, man. I have consider your stuff prior to and you are simply extremely wonderful.
    I really like what you’ve acquired right here, really
    like what you’re saying and the way through which you say
    it. You make it enjoyable and you still care for to stay it smart.

    I can’t wait to learn much more from you. This is actually a
    tremendous site.

  18. At this time it sounds like WordPress is the best blogging platform out there right now.
    (from what I’ve read) Is that what you are using on your blog?

  19. I’ve been exploring for a bit for any high-quality articles
    or weblog posts on this sort of area . Exploring in Yahoo I finally stumbled
    upon this site. Reading this information So i’m glad to express
    that I have an incredibly excellent uncanny feeling I came upon just what I
    needed. I such a lot undoubtedly will make certain to do not disregard this web site and give
    it a glance regularly.

  20. Pretty nice post. I simply stumbled upon your weblog and wanted to mention that I’ve truly loved surfing
    around your weblog posts. After all I will be subscribing to your feed and I hope you write
    once more soon!

  21. Hi there, I discovered your site by way of Google whilst looking for
    a related matter, your web site came up, it seems to
    be great. I have bookmarked it in my google bookmarks.

    Hello there, simply became aware of your blog
    via Google, and found that it is truly informative.
    I am going to watch out for brussels. I’ll be grateful in case you continue this in future.
    Lots of other people will likely be benefited out of your writing.
    Cheers!

  22. It’s the best time to make some plans for the future and it is time to
    be happy. I’ve read this post and if I could I desire to suggest you some
    interesting things or tips. Perhaps you could write next articles
    referring to this article. I wish to read more things about it!

  23. Heya! I’m at work surfing around your blog from my new apple iphone!
    Just wanted to say I love reading your blog and look forward to all your posts!
    Carry on the excellent work!

  24. Right here is the right webpage for anyone who wants to understand this topic.
    You understand so much its almost tough to argue with you (not that I personally would want to…HaHa).
    You certainly put a brand new spin on a subject that has been written about for a long time.
    Excellent stuff, just great!

  25. Hey there! Someone in my Facebook group shared this website with us so I came to check it out.
    I’m definitely loving the information. I’m bookmarking and will be tweeting this to my followers!
    Great blog and terrific style and design.

  26. Hi! I know this is somewhat off-topic however I needed to ask.
    Does operating a well-established website like yours take
    a large amount of work? I’m completely new to operating a blog but
    I do write in my journal everyday. I’d like to start a blog
    so I can share my personal experience and views online.
    Please let me know if you have any ideas or tips for new aspiring bloggers.
    Appreciate it!

  27. www
    [empty]
    z[
    [empty]
    I have been browsing online more than three hours today, yet
    I never found any interesting article like yours. It’s pretty worth enough for me.
    In my view, if all web owners and bloggers made
    good content as you did, the web will be much more
    useful than ever before.

  28. I’m really loving the theme/design of your site.
    Do you ever run into any internet browser compatibility problems?
    A small number of my blog audience have complained about my site
    not operating correctly in Explorer but looks great in Safari.

    Do you have any ideas to help fix this problem?

  29. This is really attention-grabbing, You’re an overly skilled blogger.
    I’ve joined your rss feed and look forward to searching for extra of your great post.
    Additionally, I have shared your web site in my social networks

  30. Just want to say your article is as astonishing.
    The clearness in your post is just spectacular and i can assume
    you are an expert on this subject. Well with your permission allow me to grab your RSS feed to keep updated with forthcoming post.
    Thanks a million and please continue the gratifying work.

  31. Simply desire to say your article is as surprising. The clearness in your put up is simply
    nice and i can think you are an expert on this subject.
    Fine along with your permission let me to take hold of your
    feed to keep updated with imminent post. Thank you a million and please continue the gratifying work.

  32. Wow that was strange. I just wrote an very long comment but after I clicked submit my comment didn’t show
    up. Grrrr… well I’m not writing all that over again. Anyway,
    just wanted to say fantastic blog!

  33. I’m extremely pleased to discover this great site.
    I need to to thank you for ones time just for this wonderful read!!
    I definitely liked every little bit of it and i also have you
    saved to fav to check out new stuff in your blog.

  34. I blog quite often and I genuinely appreciate your information. This article has truly peaked my
    interest. I will bookmark your website and keep
    checking for new details about once a week. I subscribed to your Feed as well.

  35. You actually make it seem so easy along with
    your presentation however I in finding this topic to be really
    something which I think I might never understand.
    It kind of feels too complex and extremely wide for me.
    I am taking a look ahead for your next publish, I will attempt to get the dangle of it!

  36. What i do not understood is in fact how you’re not actually much more smartly-favored than you might be right now.
    You’re so intelligent. You recognize thus significantly
    in the case of this subject, produced me personally
    imagine it from numerous various angles. Its like women and men aren’t fascinated unless it is something to do
    with Woman gaga! Your own stuffs nice. Always care for it up!

  37. I’m amazed, I must say. Rarely do I encounter a blog that’s equally educative and engaging,
    and without a doubt, you have hit the nail on the head.
    The issue is something which not enough people are speaking intelligently about.

    Now i’m very happy I found this during my hunt for something concerning this.

  38. Usually I do not learn article on blogs, but
    I wish to say that this write-up very pressured me to
    check out and do so! Your writing taste has been surprised me.
    Thank you, very nice article.

  39. Wonderful work! That is the kind of information that should be shared
    around the web. Shame on the search engines for now not positioning
    this submit upper! Come on over and talk over with my website .
    Thank you =)

  40. I’m amazed, I must say. Seldom do I encounter a blog that’s both equally educative
    and interesting, and let me tell you, you have hit the nail on the head.
    The issue is an issue that not enough people are speaking intelligently
    about. I’m very happy that I came across this in my hunt for
    something concerning this.

  41. Every weekend i used to pay a quick visit this website, for
    the reason that i want enjoyment, since this this web page conations
    genuinely good funny data too.

  42. Admiring the time and effort you put into your site and detailed information you provide.
    It’s awesome to come across a blog every once in a while that isn’t the same unwanted rehashed information. Great read!

    I’ve bookmarked your site and I’m including your
    RSS feeds to my Google account.

  43. Magnificent goods from you, man. I have be mindful your stuff previous to and you’re
    simply extremely magnificent. I really like
    what you’ve acquired right here, certainly like what you’re
    saying and the way in which in which you are saying it. You are making it
    entertaining and you still take care of to stay it smart.

    I can’t wait to read far more from you. This is actually
    a great site.

LEAVE A RESPONSE

Your email address will not be published.

You Might Also Like