Real estate is a huge sector in Nigeria's economy and has 2.26 percent growth in the last quarter of 2021. It is rare to find anyone who hasn't heard about real estate one way or another in recent times from TV, radio, billboards, family, and friends.

Some may even be participating in real estate without knowing. It goes beyond hearing about famous Real estate companies in the media. Real estate could start from owning farmland to a landlord collecting rent.

There is a reason why your family and friends are investing and giving great reviews about real estate, but first let's get familiar with the concept.

What is Real Estate?

It refers to the land along with any real property attached to the land like the roadway, air around the house. In business terms, Real Estate is the production, buying and selling of properties. It can be owned by a private, government or corporate entity.

Main categories of real estate properties;

1. Residential Real Estate: Family houses, duplexes, condos, etc.
2. Commercial Real Estate: This is used for business purposes such as apartment building, hotels, restaurants, grocery stalls, malls, service apartments, etc.
3. Vacant Land: Undeveloped property like bare lands, farmlands, and ranches.
4. Industrial: For manufacturing, production and distribution purposes like power plants, warehouses, etc.
5. Recreational purposes: Real estate can be used for social or recreational purposes like stadia, schools, markets, cemeteries, etc.

Real Estate Investment

Investing in real estate could be as simple as; renting and leasing an apartment, owning a home, house flipping, etc.

Here’s why people are investing in Real Estate today.

• Cash flow: Real estate is the surest way to get money coming in without any hindrance.

• Security: Chances of losses are very slim unlike other investments like Forex trading, stock markets, etc . Real Estate involves owning real properties with documents as proof, hence you can always see what or where your money is put in without being worried.

• Appreciation: One can go to bed, coolheaded knowing that inflation, economy or time cannot affect your investment. Land, unlike other properties like cars, jewels or phones does not go down in price, instead it increases, hence making it a secure venture.

• Collateral Security: Real estate is used widely as collateral to secure bank loans, mortgages, etc with owning a Certificate of Occupancy (C of O).

• Protection Against Inflation: The value of real estate does not reduce, but instead increases as costs of living increases.

• Easy to venture in: Real estate investment does not require any technical skill. You do not have to learn about stock markets or others that require a lot of education in it. It as simple as dialing a trusted Real estate organization and getting started.

• Family plan/Inheritance: Investing in it is a good way to protect your family. If you have children, you could save ahead for their tuition with real estate. Also, real estate could serve as a form of inheritance from parents to their kids or family or friends.

• Returns can be estimated: Unlike other investments where you do not know what to expect with fluctuations on stock markets, real estate returns can be calculated ahead of time for you to make your plans.

• Retirement plan: Many people now live calmly, making money from their investment in real estate. Rents, leases help you make a living. You can plan ahead your life by investing and making a payment plan that would serve you when you retire.

• Passive income: Real estate gives you the time to do other things while you make money from it. You can explore your other talents or jobs, knowing there’s something to fall back on. Or you could even invest in businesses with money earned from real estate.

• Fulfillment and Ownership: With Real estate, you call the shots. You are the boss of your property. It gives you a standing in the world and a sense of fulfillment, having an asset with your name on it.

• Long term Investment: You could have your property for years and it wouldn’t go anywhere. Since it’s a real property, it is always there whenever you’re ready to resell with your legal document or dealing with leasing and rents.

2022-06-08 17:03:15