19 Sep 5 Essential Features That Make Real Estate Investing Profitable
Ten decades ago, a hunt for real estate could have begun at the office of a regional real estate agent or by simply driving around town. At the agent’s office, you would spend a day flipping through pages of busy property listings from the local Multiple Listing Service (MLS). After picking properties of curiosity, you’d spend many weeks touring every property before you found the right one . Finding marketplace data to let you assess the asking price would take more time and a lot more driving, and you still may not be able to find all the information you had to have comfortable with a fair market value.
Nowadays, most land searches begin on the Internet. A fast keyword search on Google by location will probably get you tens of thousands of outcomes. If you spot a property of attention on a real estate internet site, you can normally view photos online and perhaps even take a virtual tour. You can then check other Web sites, such as the local county assessor, to get an idea of their property’s value, see what the owner paid for your property, check the actual estate taxation, get census information, school information, and check out what shops are within walking distance-all without leaving your property! Click here to find more houses in New Castle.
While the resources on the Internet are convenient and beneficial, using them properly can be challenging due to the volume of information and also the difficulty in confirming its accuracy. In the time of writing, a search of “Denver real estate” returned 2,670,000 Internet sites. A neighborhood specific search for a property can easily return thousands of internet sites. With so many resources online how does an investor effectively use them without getting bogged down or twisting up with incomplete or poor information? Believe it or not, understanding the way the business of real estate functions offline makes it easier to comprehend online real estate information and strategies. Looking for Rifle, CO homes?
Now and then persons trying to make up their minds where to place their cash ask me if real estate ventures are less rewarding, compared to additional business opportunities around.
My response is always that besides the potential for yielding substantial gains, investing in real estate frequently hastens long terms benefits.
I discuss five such benefits below:
1. You May Refurbish (to Enhance the Value of) Real Estate
After you buy a stock, you hold it for a while and sell it for a profit. The achievement of the stock is dependent upon business management and their company’s success, which is out of your control.
Contrary to other conventional investment instruments, like stocks, for example, whose speed of returns, is dependent upon third parties (e.g. company management), real estate investments are directly under your control.
Even though you won’t be able to control changes that might happen in demographic and economic aspects of the impact of character triggered changes, there are many different facets that you can control, to increase the yields on your investment within it.
Examples include aspects relating to adding fixes, or improvements/enhancements into the physical property and tenants you allow to live inside.
Should you do it right, the value of your investment will grow, leading to increased prosperity for you.
2. Real Estate Purchasing, When Done Right, is Proven to be Profitable Even Through a Recession (such as the one we’re in right now)
It has on many occasions, been used to effect a bailout, from financial reverses, like those that many have undergone throughout the economic downturn occurring in Nigeria today.
A substantial amount of clients have confided in me that due to the present economic scenario, they’re not sure of lucrative channels to commit their cash. A number of them are performed with bonds and treasury bills but are in dire need of fresh investment.
We had extensive discussions and according to my expertise as a property consultant, I advocated landed real estate investment, as the most suitable and safe alternative channel of investment.
That is because, even though most businesses crumble, the property will always appreciate it greatly. Subsequently, to drive my point home, I ended by discussing the following apt quotation, by a former American president:
“Real estate can’t be lost, nor carried away, managed with reasonable care, it’s all about the safest investment in the world” – Franklin Roosevelt.
Unsurprisingly, the client chose to take my information – and signed up: it had been the obvious, common sense thing to do!
3. Real Estate Investments Are Immune to Inflation
In other words, investing your money in possession of the workable property can protect you from the harsh effects that inflation generally has on other conventional investments.
This is because the value of real estate generally tends to grow within a positive correlation with inflationary pressures. That is the reason why property values and lease prices go up with rising inflation.
The nature of the real estate consequently affords owners the exceptional benefit of having the ability to correct the prices they offer, to match inflation.
Monthly rents by way of example can be raised to compensate for inflation – thus offering a cushion impact against inflation induced losses which other monetary investments suffer.
4. Real Estate is Uniquely for Being Universally Acceptable as Collateral, Towards Securing Funding from Banks
Nowadays, property in form of buildings or lands, together with appropriate titles (i.e. Certificate of Occupancy – aka “C of O”) is the most recognized and approved form of collateral in Nigeria – and also some other parts of the world.
It has the exceptional characteristic of being able to protect the interests of both the debtor and the lender (that is performing the lending company), so funds can be released i.e. after due verification, and terms and conditions are agreed.
This is only one of the critical advantages a personal C of O has over the global C of O because the prior (i.e. private C of O) is what will be required by the intending borrower, at the event of any future fiscal dealings with the lender in Nigeria.
5. Real Estate Buying Enables 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.
That is possible because the property is physical land or what is called a hard advantage. This is an attribute that makes it appealing to financiers i.e. individuals with cash to invest.
This is why many times property products are bought with debt – unlike traditional investment products like stocks that aren’t tangible and consequently perceived as being riskier to invest in.
So property investment can be done using cash or mortgage funding. In the latter case, payments could be so arranged to permit payment of low first sums, provided by a willing third party.
Those payments will be happening on landed property which will keep on increasing in value during the whole period of these payments – and beyond. That additional inspires confidence in the minds of those financing the acquisition, that their investment is safe.
Small wonder that property investing has continued to flourish for so long!
[A WORD OF CAUTION] The recorded benefits, however, I tell prospective investors that due diligence is a vital requirement for succeeding.
Whether you do yourself or use industry professionals like me, you must exercise caution and arm yourself with pertinent information and education.
That is something I advise my customers to do all the time so that they can make good choices in investing.
The value of the above cannot be overstated, particularly in Lagos where quite a range of people, have had their fingers badly burned, because they failed to take the needed precautions.
My purpose is to help clients avoid having such horrible adventures, by bringing my years of experience in this field to bear in serving them.