According to studies, aside from food and clothing, shelter is one of the basic needs of humans.
From Tokyo in Japan, Ontario in Canada to Nairobi, Kenya, every human needs a place to crash after a hard day at work.
This underscores the importance of the real estate business. And with the sprawling urban centers in the country and rising population, there seems to be an ever-increasing need for properties to accommodate the large numbers.
Thus, the real estate sub-sector is now one of the hottest areas to invest, promising opportunities, limitless they are, for the budding entrepreneurs.
Aside from this, investment in real estate comes with:
Ceaseless Cash Flow:
Getting ceaseless cash flow in the real estate business is easy. When you buy land or build a house, you can lease it to tenants who in turn pay rent for the property (monthly, yearly, as stated in the contract/agreement).
This becomes more interesting as properties always appreciate due to the inflation rate and the rising demand for accommodation by the teeming masses.
With this, real estate investment trumps many other investment options like shares that have unsteady dividends or bank savings that come with meager interest rates.
You can even build an apartment with your retirement pay and be assured of steady cash flow from the rental fees.
Properties Can Be Used As Collateral
Obtaining a banking loan is certainly one of the daunting challenges of entrepreneurs in the country while starting off their business ventures.
However, your case will be a bit easier if you have a property as it can come in handy as collateral to start or expand an existing business venture.
This is because banks often want something higher in value than the loan you are seeking as well as something that won’t depreciate unlike cars or stocks (which are unstable).
So, see how owning a property gives you leverage in business?
Great Return Of Investment:
Since Africa is a developing continent with an unsaturated real estate market, as obtainable in certain parts of the globe, investing in the sub-sector is one of the simplest ways of getting a high return rate.
This is one of the implications of a booming population that is always in need of accommodation for their thriving businesses, and even residential apartments.
Even though buying and selling real estate should not be your major objective, it tells you that in the future, you may need to sell such properties and make a handsome return.
This is aside from renting/leasing such properties. The interesting thing is that you’d still make a decent profit on your investment either way – selling or renting.
Investment Risk Is Low:
Stock markets crash, banks go bankrupt but when real estate fails, you can still lay hands on the tangibles.
For instance, you can rent out an apartment and still earn income from it no matter how bad the market looks.
So your money is rarely wasted when you invest in the real estate sector.
In sum, investing in properties will give you a massive return with ceaseless cash flows as well as a bargaining chip for obtaining credit facilities from financial institutions.
Real estate is definitely one veritable investment option you can think of, especially in Africa.