Real estate investments; what about it? well, it is everything. 5 reasons why real estate is the best investments is something we ought to remind ourselves every now and then. Let me put it this way: if you think of a good investment, safe, tangible, the one that your banker can gladly lend you money to buy and lots of other goodies, what else will you think of if not real estate. In my world it is all that matters. Investing as we all know is an action taken by individuals or group of individuals to put resource together into a profitable venture for a common goal of receiving profits. Real estate investing is an act of buying a landed property to keep or sell all at a profit. If the word profit is absent, then it is no longer an investment. Since I found my passion in real estate, I witnessed a rebirth, a new me. I felt a good reason to go for it for life. In this article, I will share with you 5 reasons why real estate is the best investment. For better understanding and clarity of my view, I will break it down into bullet points It brings about cashflow Definitely, all investments brings cashflow. Some might be stable others might not. But a very good reason why real estate is the best investment is because it has the probability to remain stable in every situation of the economy. Even in hard times. Real estate provides one of the most essential necessities of life. So whatever the economic threat is, people must have a roof over their heads. That is why the cash will keep pouring in. Borrowing Advantage Real estate is a tangible asset. It is not like a ghost as I use to call paper asset such as stocks. It is something that you can feel; move in, out and around. In addition, it is by itself immovable. No one can make it disappear from its physical location. This is one of the major reasons that financial institutions will lend you money to buy it. The borrowing advantage is another reason why real estate is the best investment. The banks can lend you money then allow you to pay back over a period of time. If your real estate investment is a rental property, then the leverage is more beneficial, because the tenants pay for your debt indirectly. Despite that, you still have to have some cashflow out of it. Appreciation This is another great point. Property appreciate in value with time. So the older the property has been existing with you the more the value goes up. Real estate also have their own down market. But if a real estate investor can capitalize on appreciation and cashflow, I think that is a gold mine for the stable returns. In Abuja and environs, real estate market’s rate of appreciation excites me. It is growing and never seems to depreciate. But generally, all over the world property value increases while the oil price remains unstable. Population growth I will attribute this particular point to Nigeria. The population is growing, and this has brought about a lot of economic activities. In real estate, it has caused the expansion of the metropolis and has intensively expanded the neighbouring towns beyond their boundaries. New neighbours are formed, banks are building branches as new markets are been established. But it seems that non of what I said is happening, but I have been consciously observed how things were previously and what they have become now. Quite a great experience. A place where population increases is good health for real estate investment. Depreciation Like in America, depreciation favour real estate investors. It comes in form of tax deductions. Tax that have been legally waved. Thereby not holding the real estate investors guilty for withholding such tax. I wrote few about this you can include what you know or heard concerning it in the comments below. One last thing The investment benefits of real estate cannot be overemphasize. This is why most people find real estate as all they need to stay alive. You can go ahead and add more of what you think in addition to my 5 reasons why real estate is the best investment. And also, There are similar articles I have written on the subject of real estate investment. check them out in the opportunity category. I intent take active part in some good real estate investment deals, my original intent was not to write about it but to do it. Thank you for reading this article. Please, do share this article on social media with your friends. Remember to leave you comments, trust me they might be helpful.
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