Over the past two decades, the Nigerian real estate sector has experienced a boom causing many people to delve into it. Its versatility and high rate of appreciation make it a very attractive investment platform which many investors are already taking advantage of. And despite the high inflation rate in the country, it has continued to be a profitable and sustainable platform for business.
The real sector is one which anybody can go into once they are equipped with the right information and given proper guidance. Some people may have doubts and fears about investing in real estate, a major one being the capital cost required. However, there is a solution to that and understanding the benefits investing in real estate offers would help you overcome your fears.
Benefits of Investing in Real Estate
Stability: Unlike other investment platforms like shares, stocks or forex, which could be quite volatile and difficult to predict, the real estate sector is stable and has the potential to produce a massive profit in returns if invested correctly.
Cash Flow: Whether you invest in commercial or residential real estate, your real estate investment offers you the chance of getting a steady flow of cash from tenants to whom you leased or rented out your property, even as the property continues to appreciate.
Diversified portfolio: With real estate, you can have multiple investments at the same time. You can also leverage some of your existing investments to build wealth in other platforms within or outside of the real estate sector.
Financial security: Your real estate property can appreciate over a long period of time to yield high returns. You can also make money in the short term from your rentals while the property value continues to appreciate.
Passive Income: In real estate, you can choose to be an active or a passive investor. If you decide to become a passive investor, you can still make money from real estate. You can become an indirect investor by pooling resources with other investors to invest in land or property.
Appreciation Potential: With real estate, properties can appreciate over 1000% making it a very lucrative investment avenue. If your property is strategically located in a developed or rapidly developing area, you can make much more profit from your property much more than you expected.
Financial Credibility: Having a property to your name can improve your financial ratings. The property can serve as collateral for you to access loans and carry out other projects or go into other investments.
REITs: Real Estate Investment Trusts are avenues for co-investing with other investors using resources pooled together. When you buy into REITs, you become a shareholder in the property and you’re able to be a part of an investment you might not have been able to maximize on your own.
In the real estate market, you have to be deliberate about the kind of property to invest in to enjoy the benefits it offers. It is important to conduct proper research on any property, and get professional help if necessary to ensure you do not make an unprofitable investment.
The Magnificent is a real estate company focused on providing futuristic homes with innovative features such as smart technology to ensure we exceed customer satisfaction. Our properties are strategically located to guarantee you a high return on your investment. You can find out more about the investment avenues available by clicking here.