Reasons Why Real Estate Investment is a Great Space to Venture In
Dave Nyabwari
Are you thinking about a money making investment?
Real estate is a brilliant idea to invest in for it has numerous benefits that are noteworthy when assests are well-chosen; the benefits include:
- Passive income
- Diversifaction
- Leverage
- Tax advantages
The benefits are quite captivating for investors who wants to make real estate investment. Everyone wants to earn gigantic profits from the investment they have made, therefore real estate investment can be for you.
Notable reasons to invest in real estate
Real estate investment has reasons why it is amazing to carry out other than the benefits stated above and are also interesting.They include:
1.It’s a relatively safe form of investment
The real estate investment offers a perfect opportunity to invest safely. Especially in Kenya the market offers a relatively safe and vibrant market. Comparing the property and shares return and risk, property easily wins.
Usually shares have an enormous capital growth and also the difference in risk is also very huge.The range of risk is from +40% in a year to -40% in a week!
In the case of property,on the other hand does not experience such risk rates which is an assurance that it is a safer investment.
Isn’t this amazing?
2. It’s almost easy to get started
Real estate investment may seem to be straight forward but to make a successful investment you need specialist knowledge to know a genuine asset and an asset which is fake before investing.
However, getting the right information, seeking it from the right offices is better than putting trust on your friends recommendation.
The value of an asset keeps increasing therefore as you start an investment. Be diligent so that you ensure you should invest where you will reap out and also shun any investment which you won’t reap.
3. It’s easy to get finance
In kenya asset financing institutions offer flexible rates for real estate purchase since lenders like property.
Home loans are a major part of any bank’s business and lender’s are more likely to lend residential property with low interest rate than any other class of assets including commercial property.
To get a loan to carry out real estate investment is easier since banks are ready to give out thus getting started in the business is easy.This is another amazing fact.
4. Appreciation of the value of real estate
Real estate investors get profits from rental income.The value of real estate over time tends to increase and with a good investment you can make huge profit. Rents tend to increase over time thus leading to a higher cash flow.
5. It’s easy to research on real estate
To make an investment for first time or more investment in real estate is easy as compared to stocks and shares investment, you can get information required in the following ways:
- Going personally on the ground and ask around the areas you have interest.
- Online research to get information needed on the interested investment.
- Visit auctions and open houses can give insight on what you need.
Good research on the real estate investment you are to make gives the investor a chance to ensure he/she has the genuine deal and avoid future demolitions.
6.Stable cash flow
Cashflow is the net income from a real estate investment after mortgage payment and operating expenses have been made.
As an investor in real estate once you have acquired an asset and built your own equity the cash flow now begins to strengthen and with time it becomes stable and bontiful.
This is one of the amazing reasons why investing in the real estate is just a brilliant idea since the corner stone of any investor to make profits.
7.Real estate is improvable.
Real estate assets are made timber,blocks,concrete and glass. These substances can be improved by either repairs that are structural or cosmetic. Improving them will also improve the value of that asset thus helping the investor generate more cash over time.
Fast fact: As you plan to make investment in Real estate, to ensure it is successful plan out your expenses and do a good reasearch on the property you want to invest to avoid fraudsters and demolitions on property acquired.
