Over the last decade, the real estate industry in Nigeria has enjoyed a lot of attention.
This also implies that you must have heard about real estate investment quite a number of times in the last decade.
But is it really worth the hype?
Well, we would let you be the judge at the end of this post.
In today’s post, we highlight a list of several reasons why investments in real estate should be given priority – compared to all other investment options.
- Real estate is tangible asset. Tangible assets have a track record of possessing more value as compared to intangible assets like stocks whose value often fluctuate with market conditions beyond your control. With real estate, your investment will always be here.
2. Real estate appreciates in value overtime. It is probably the only type of investment that appreciates overtime without any active input or involvement. When investing in real estate, you can be sure that every new day presents you with new levels of ROI.
3. You have control over its value. Unlike other investment options, real estate offers you some level of control in determining its value. For instance, making improvements that increase the overall desirability of a property equals an increase in both its capital value, as well as its cash flow potential.
4. Cashflow: Do you know of any other investment that allows you to generate cashflow without a depreciation in the asset value? With rental income, you can generate cash flow from a property without obstructing its capital value appreciation.
5. Predictable income: Having control over the value and cash flow potential of a property also gives you the ability to predict your income, thereby aiding effective financial planning.
6. Access to Credit: Owning real estate also makes you credit worthy. This means that you have better access to credit facilities. This is an advantage that is not available to everyone.
7. Hedge against inflation: One fantastic way of hedging against inflation in an unpredictable economy is through owning real estate. It is most likely the only asset that does not suffer a negative impact of inflation. In fact, the value of your real estate portfolio appreciates with every inflation.
8. Immediate results: Irrespective of the size of your investment, you can start seeing immediate results via cashflow. This is one fantastic way to begin recovering your capital investment right after making the investment.
9. Portfolio diversification: Several investment options are volatile and dependent on the local economic conditions. Hence, owning real estate helps you to diversify your portfolio. It also protects you from financial stress when the economy nosedives and impacts all other investments negatively.
10. Improves the community: Whether you are investing in residential or commercial real estate, you are helping to either provide homes for others or to bring services closer to members of the community. This is one way to help improve your community while generating revenue.
Now do you think real estate is worth the hype?
Share your thoughts with us in the comment section below.