Investing in properties and lands is a popular career choice for good reason in Nigeria BUT it takes dedication and strategy, to properly execute.
It is obvious that Real Estate Investments provide a multitude of advantages over other career options.
Read on to find out what benefits make real estate investing such an attractive option.
Real estate is commonly thought of as a great investment opportunity because of its ability to increase in value over time. This process, called appreciation, makes it possible for real estate owners to buy and sell properties for a profit. Property appreciation is also an added benefit to owning rental properties. Not only will the home increase in value the longer you own it, but rental rates generally follow an upward trend as well. This makes real estate a profitable long-term investment.
(N.B): If your investments will not be at utmost appreciation, there is no need for such investment.
- LEVERAGE FUNDS
When purchasing a property, you have the ability to do so with leverage. It is entirely possible to purchase a N50,000,000 property with N1,000,000. You don’t even have to use your own money. Stocks, on the other hand, require 100 percent of the investment upfront. Leveraging money also allows you to initiate more than one real estate deal at a time because all of your funds aren’t tied up in one project
- HEDGE AGAINST INFLATION
Inflation is defined as a sustained increase in the general level of prices for goods and services.
Real estate serves as a hedge against inflation.
It reacts proportionately to inflation. As inflation increases, so too do rents and home values.
Unlike almost every other form of investments.
- CASH FLOW
Real estate is one of the best ways’ investors can generate cash flow. The monthly income that rental properties generate can offset investors’ expenses and put money back in their pockets. Over time the initial money the investment took is made back, and a positive return is seen. Cash flow is arguably the greatest benefit reaped from investing in real estate.
If you borrow money to complete a real estate deal, you will be required to pay it back with interest. However, each payment also gets you one step closer to paying down your principal payments. You are simultaneously building equity and wealth in the same property.
- TAX ADVANTAGES
There are ways to combat the loss of money in taxes with real estate. Rental houses, apartments, vacant land, commercial buildings, industrial, shopping centres, and warehouses all offer their own variation of tax incentives.
Do you need viable properties and lands in significant locations in Nigeria where you will get over 150% interest in short, medium & long terms?
Are you interested to know more on the benefits of real estate investments?