The Most Important Factors for Real Estate Investing

Ten years back, a search for real estate would have begun in the office of a regional real estate agent or by simply driving around town. In the broker’s office, you would spend a day flipping through pages of busy property listings from the Regional Multiple Listing Service (MLS). After choosing properties of curiosity, you would spend many weeks vacationing every property until you found the right one.  Finding market information to enable you to assess the asking price would take more time and much more driving, and you still might not be able to discover all of the information that you needed to get comfortable with a reasonable market value.

Today, most property searches begin on the Internet. A quick 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 web site, you may normally view photos online and maybe even take a virtual tour. You can then check other online sites, such as the local county assessor, to get a notion of their property’s worth, see exactly what the owner paid for the property, check the real estate taxation, get census data, school information, and even check out what shops are within walking distance-all without leaving your property!

While the tools on the Internet are convenient and helpful, using them correctly can be a challenge because of the volume of information and the difficulty in confirming its accuracy. At the time of writing, a look of “Denver real estate” returned 2,670,000 Web websites. Even a neighborhood search for a property can easily return tens of thousands of internet sites. With so many resources online how does an investor effectively use them without becoming bogged down or twisting up with incomplete or bad information? Believe it or not, knowing the way the business of property functions offline makes it a lot easier to understand online property information and approaches. Looking for real estate in Rifle? Find them here.

Every now and person hoping to make up their minds where to place their cash ask me if property ventures are less profitable, compared to additional business opportunities around.

My reply is always that besides the potential for yielding substantial profits, investing in real estate frequently hastens long terms benefits.

I discuss five such advantages below:

1. You May Refurbish (to Enhance the Value of) Real Estate

After you buy a stock, you hold it for a while and hopefully sell it for a profit. The success of the stock is dependent upon business management and their company’s success, which is out of your control.

Contrary to other traditional investment tools, like stocks, for instance, whose rate of returns, depends upon third parties (e.g. company direction), real estate investments are right under your control.

Though you won’t have the ability to control changes that may occur in demographic and economic facets or impact of nature induced modifications, there are many other facets which you can control, to boost the yields on your investment in it.

Examples include aspects about adding repairs or improvements/enhancements to the physical possessions and tenants you allow to live in it.

Should you do it right, the value of your investment will increase, resulting in increased wealth for you.

2. Real Estate Purchasing, When Done Right, is Demonstrated to be Profitable Even Through a Recession (such as the one we’re in right now)

It has on many occasions, been utilized to influence a bailout, from financial setbacks, like those that many have experienced throughout the economic recession occurring in Nigeria today.

A substantial number of clients have confided in me that due to the current economic situation, they are not sure of profitable channels to commit their cash. Some of them are performed with bonds and treasury bills but are in desperate need of new investment.

We had extensive discussions and based on my expertise as a property advisor, I advocated landed real estate investment, as the most suitable and secure alternative channel of investment.

That is because, even though all businesses crumble, the property will always appreciate it greatly. Subsequently, to drive my point home, I ended by discussing the following apt quotation, with a former American president:

“Real estate can not be lost, nor taken away, managed with care, it’s about the safest investment in the world” – Franklin Roosevelt.

Not surprisingly, the client opted to take my advice – and signed: it had been the obvious, common sense thing to do!

3. Real Estate Investments Are Immune to Inflation

To put it differently, investing your cash in ownership of workable property can protect you from the unpleasant effects that inflation generally has on other traditional investments.

This is because the value of property generally tends to rise in a positive correlation with inflationary pressures. This is why property values and lease prices go up with increasing inflation.

The nature of the real estate therefore affords owners the exceptional advantage of having the ability to adjust the prices they offer, to match inflation.

Monthly rents for instance can be raised to compensate for inflation – thus providing a cushion impact against inflation caused losses that other monetary investments suffer.

4. Real Estate is Uniquely for Being Universally Acceptable as Collateral, Towards Securing Funding from Banks

Today, property in form of buildings or lands, with appropriate titles (i.e. Certificate of Occupancy – aka “C of O”) is the most established and accepted form of security in Nigeria – and several other areas of the world.

It has the exceptional characteristic of being able to guard the interests of both the debtor and the bank (that is performing the lending), so funds could be released i.e. after due verification, and terms and conditions are agreed.

This is only one of the key advantages a personal C of O has within the worldwide C of O since the prior (i.e. personal C of O) is what will be needed by the planning borrower, at the event of any future financial dealings with the lender in Nigeria.

5. Real Estate Buying Enables Use of Other People’s Money

To put it differently, you can do it even should you not have sufficient cash. You just should know-how.

This is possible because real estate is physical property or what’s referred to as a hard asset. That is an attribute that makes it appealing to financiers i.e. individuals with cash to invest.

This is the reason why many times property products are bought with debt – unlike traditional investment products like stocks that aren’t real and consequently perceived as being riskier to invest in.

So real estate investment could be achieved using cash or mortgage financing. In the latter case, payments can be arranged to permit payment of low initial amounts, provided by a willing third party.

Those payments will be happening on landed property which will keep on increasing in value during the duration of these obligations – and indeed beyond. That further inspires confidence in the minds of those funding the acquisition, their investment is secure.

Little wonder that real estate investing has continued to prosper for a long time!

[A WORD OF CAUTION] The recorded benefits notwithstanding, I still tell prospective investors that due diligence is a vital requirement for achievement.

Whether you do everything yourself or utilize business professionals like me, you must exercise caution and arm yourself with relevant information and education.

This is something I counsel my customers to do all of the time so that they could make good decisions in investing.

The importance of the above cannot be overstated, especially in Lagos where a significant range of individuals, have had their fingers badly burned, since they failed to take the necessary precautions.

My purpose is to help clients avoid having such horrible adventures, by bringing my years of expertise within this area to bear in serving them.

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