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10 Strong Reasons Why Real Estate Investment Is Good For You -Part 2

Posted by Uget Properties on July 20, 2018

I hope you enjoyed the first part of this article. In part One, I made it clear that real estate investment is a good investment holding to invest in for the following reasons:

  1. Appreciation in Value,
  2. Continuous flow of passive income
  3. Investment Diversification and Overall Stability
  4. Leverage
  5. Wealth Creation

Let’s continue with the part 2

  1. Inflation Buffer

A holding in long-term real estate is a great strategy and an effective hedge against inflation cycle. In long term, you discover that the value of a landed property has historically increased at a rate equivalent to the rate of inflation. You are aware that inflation general impact our standard of living and net worth. Investment in real hard asset ensures that the impact of inflation on your standard of living, disposal income and wealth is relatively low if not favourable.

  1. Long Term Financial Security

Arguably, nothing else guarantees long term financial security like real estate investment. This doesn’t require rocket science to grab. It is quite simple: you invest in real estate and over the years this asset, if developed, it brings in consistent inflow while multiplying in value. In few year, through rent you recoup your capital, pay back any loan or mortgage and live on endless profit. If after several years, you decide to sell off the property, you can be sure you may be heading to making a killing. If you ever need money you can sell off the property and meet your needs, but if you don’t, you will continue earning rent from the current tenants. No doubt, there is appreciable security in real estate investment, which makes it a lucrative venture for many people.

  1. Take Advantage Of Market And Economy Cycles

Most markets and economy experience high and low seasons and real estate is no different. The real estate market often goes through “low and high cycles”. This brought about the maxim “buy low and sell high”. Strategic market timing is a key element of successful real estate investment. While it is hard to determine when a market has reached the lowest or bottom of the real estate cycle, identifying an upward trend and acting promptly can eventually translate into huge future returns. Real estate market may not be an exact science, but there are several major indicators that effectively points out where a market is in its lifecycle. Some of these indicators include, supply and demand, interest rates, employment trends and population growth. However, understanding these factors and correctly interpreting them may require some market research and experience.

  1. Title Ownership

Most people have title ownership to only depreciating assets: car, TV, laptops, phones, etc. Even if any of these things are making income for you now, they all have short life span and their income potentials decrease with time. But there is this joy, pride and security that comes with ownership of a landed property. It makes you start thinking big: start thinking of owning a company, establishing a small business, building residential apartments etc. It brings you in control and with this control, comes the right to build whatever you wish, sell, rent, refinance or hold the property as you deem fit.

  1. Anyone Can Own A Property

Real estate is real; it does not require the knowledge of rocket or medical science. With little time and commitment of resources, you can gather sufficient information that will be good for your real estate decisions. You also don’t pay a fortune to consult property experts, some of them are your neighbor and their advice can even come free of charge. I mean, property ownership is not for Realtors and HNIs, anyone can make good fortune in real estate. Also, with little research, you will discover that there are properties that suits your budget. In Nigeria today, you may have noticed some places that were bushy areas few years ago are now fully occupied. As long as you are interested in investing in real estate, you will always hear about newly developing areas that are going at very affordable prices. When you see such opportunity, don’t pass it on, cash in on it and you will be smiling in the near future. However, I implore you to do your due diligence before making financial commitment.

I hope you now know why real estate is a portfolio you should seriously consider adding to your investment holding. Always return to Ugetproperties.com for all your real estate needs.

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