5 Tips To Investing Right In Real Estate
The real estate market offers the opportunity to make more profit if well understood. However, investing in real estate without proper guidance can be quite complicating. The place of having a good knowledge of real estate before venturing into it cannot be overemphasized. Real estate investment goes beyond just buying a house to call your home.
In recent times, the younger generation has taken a striking interest in real estate investment. The long-term financial gain that real estate offers is one of the reasons why real estate investment stands out among other forms of investments. Investing right in real estate offers a steady inflow of income.
If you are a greenhorn in real estate, there are quite a number of things to learn before going in. Without a doubt, real estate investment is more complex than other forms of investments such as stocks, bonds, etc. Real estate requires more commitment in terms of legal, time and finance involved.
As mentioned earlier, there is a lot to real estate than just buying a couple of properties. This is why it is important to have a good background knowledge of real estate and real estate investment before venturing into it. This also helps to avoid pitfalls in the long run.
Like every other type of investment, investing in real estate comes with risks. It is also important to note that real estate investment isn’t a means of getting fast money. It is an investment that builds up over time and gives a long-term security. Before we delve into investing right in real estate, here are some ways of investing in real estate:
By land flipping, we simply mean making a profit by buying a land and reselling quickly. Although this process may turn out to be a tad bit risky, it is quite beneficial. In a city like Lagos, Nigeria, where the rate of property appreciation is quite impressive, flipping a home is certainly a good idea.
In some cases, you can buy houses that need a little fixing here and there, fix them and resell at a higher price. This type of flipping is known as ‘live-in flip’. To be really great at flipping and reselling, settling for the best deals is important. Buy only houses with less work to be done. This way, at the end of the day, you will be making more profit.
It is also important to bear in mind that sometimes, these lands or houses don’t get sold off as fast as expected. In some cases, location, demand and the real estate market generally affect the rate at which the property will be sold off.
Rental property is a lot different from house/land flipping. When investing in rental properties, first the property is owned by you and rented out to tenants for various use. Depending on what type of property it is, either commercial property, flat apartments, office spaces and the likes.
One advantage of investing in rental properties is the fact that it is a long-term investment. The house owner keeps getting a steady income as long as the property is in use. There is also the place of proper maintenance which sometimes determines the value of your property
Real Estate online
In recent times, we have had online real estate companies springing up from all sides. You can invest in residential or commercial real estate investment without even knowing where these properties are. These companies offer dividend based on the properties you invest in, either residential or commercial.
Invest in REITs
Real Estate Investment Trusts also known as REITs are companies that own, operate and finance majorly commercial real estate. Some of which include warehouses, shopping malls, hotels, hospitals and more. These companies have a good number of benefits for their investors.
Investing in REITs is much like investing in mutual funds or ETFs. Unlike rental properties or home constructions where you have the physical property, REITs is investing without bricks and mortars. It gives you a broader insight and exposure into real estate investment.
Partner with real estate companies
There are different ways to partner with real estate companies as well as other real estate investors to gain short-term and long-term profits. If you are not so keen on learning the rudiments and core of real estate, a partnership is certainly the aspect to settle
It is always noteworthy that the appreciative value of real estate depends greatly on the right location. While considering to invest in real estate, the site should not be too far from top places of interest in Nigeria. There are places to visit in Nigeria which are largely untapped mine for the real estate industry.
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As they say, first things first, dig deep. Do a research on real estate based companies and how they pay their dividend. There are different companies that are in one way or the other related to real estate such as hotels, real estate developers, real estate tech-companies such as PropertyPro.ng
Without a doubt, investing in real estate is certainly an amazing idea. It pays out in both short and long-term. Ever invested in real estate? Kindly share your thoughts with other PropertyPro.ng readers.