Did you know that real estate is the only investment that can guarantee you a high return on investment over a short period? Real estate is a reliable source of investment, and there are lots of reason why you should invest in real estate from financial freedom to having a place where you can call home real estate provides it all , there is a ‘25times rule’ used by financial planner to determine how much you need to save for retirement but still the certainty of it cannot be ascertained. Real Estate has many advantages over investing in stocks, bonds, fixed deposit And treasury bills. Real estate offers predictable cash flow; it appreciates in value, thus keeping up with inflation; it provides a higher return because of positive advantage; and it provides equity growth through debt reduction. During retirement, real estate is a self-sustaining asset, while stocks are a self-liquidating asset. Which would you prefer, a self-sustaining asset or a self-liquidating asset? Below are the reasons why you should invest in real estate.
Reasons to Invest in Real Estate
1. Real estate brings passive
Cash flow is the net spendable income derived from the investment after all operating expenses and mortgage payments have been made. An excellent real estate investment should provide you with 6% or greater cash flow, like any form of investment, the primary reason why people invest in real estate in passive income.
2. Real estate appreciates in value
Research has shown the real estate is the only investment that appreciates in capital value over a short period.
3. Real estate is safe
Property in Nigeria increase in value overtime, despite the economy downturn in the country, According to Peter Koulizos ‘when you factor in the return and risk associated with buying property and shares, property wins hands down. Real estate investment is a more stable investment with limited immunity from fluctuation
4. Real estate is improvable
One of the most unique and attractive advantages of real estate is that it is improvable. Because real estate is a tangible asset made of wood, brick, concrete, and glass, you can improve the value of any property with some “elbow grease” and “sweat equity”. Whether the repairs are structural or cosmetic, do it yourself or hire someone, the principle is the same. You can make your real estate worth more by improving it.
5. Real estate coincides with retirement
One major advantage of real estate is that it keeps growing even when you are retired. And it is also a good way to retire wealthy, when a person retire his property would keep increase in value thereby generating more income for you.
