In simple terms, real estate means “A piece of land including the air above it and the ground below it and any buildings or structures on it”.
Real estate can include business and/or residential properties and are generally sold either by a retailer or directly by the individual who owns the property (for sale by owner).
Real Estate is becoming a major topic in Nigeria these days because the price of properties is increasing day by day. It is the safest way to earn money these days because top analysts know that the future of this industry is very promising especially in locations like Ibeju Lekki, Lagos State, etc.
Financial Reasons for Investing in Real Estate
Here are some financial reasons for investing in real estate;
You Can Generate Passive Income
By investing in real estate, you can generate a passive income that is nearly tax-free. Your rental properties will work for you even when you are sleeping. By buying several rental properties that generate enough income to cover your expenses, you have the freedom to do what you enjoy, instead of spending all of your time at work.
Owning Property Generates Wealth
Do you know that as congested as Lagos is, some landed properties are worth over a 100 million naira per plot?
Forget the current price, let’s track back to some years back.
Do you know this same properties might not even be up to half a million naira?
Everyone should own at least one house or a piece of property. One of the many benefits of investing in real estate is being able to generate wealth through appreciation, building equity, and hedging against inflation. It can also provide cash flow with passive income from rental properties. These are the reasons why real estate should be a key component of your investment portfolio.
Real Estate Can Be a Stable Investment with Ongoing Income
Unlike stock market investments, real estate investment does not wildly fluctuate on a daily basis. It is a stable investment that provides you with an income.
Of course, the market isn’t the same in every city, so opportunities to buy and sell can vary substantially across the country. Many people compare real estate investing to bond investing because real estate provides stable cash flow for the owner.
However, bonds are more sensitive to market fluctuations. Real estate properties won’t immediately change in price based on capital contributions or because of political volatility.
This makes real estate a safe and stable investment. In many cases, real estate investments offer attractive tax benefits to the owners too.
Real Estate Can Never Be Worth Nothing
Aside from the fact that most real estate values usually appreciate, your real estate investment can never go down to zero, even during a difficult time.
Morris Invest believes that you can always sell your property when you own one. Unlike a stock, real estate never becomes worth nothing, even if the value drops
Real estate investing has many benefits and is a great source of passive income. Because there is a large demand for properties, the value of real estate usually appreciates, increasing your potential for profit. Aside from financial advantages, there are other important benefits of investing in real estate. Check the above advantages of real estate investing to know why this will make a great part of your portfolio.
Thank you for reading through. I’ll be glad to hear your thoughts on this topic in the comments section! Your opinion matters.