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Why Investing in Real Estate?

From time immemorial, Real estate has proven to be the best industry to invest in all over the world. However, there are many people out there who wants make some investment but are still wondering where they can put their money to make more money for them. Some have chosen what they referred to as secured investment such as

  • fix deposit in banks, shares / stocks,
  • government bonds,
  • mutual funds.

While you may want to argue that these are less risky and the returns are guaranteed and that real estate is too risky. In the real sense to such fellows, security is their top priority not freedom.

To be free, you need to be in control.

  • in control of your life,
  • your situation,
  • your finances,
  • return on your investment.

Here are some reasons why you need to look at Real Estate for you to be in control.

Most people feel investing generally is risky because they do not have control over the asset in which they invest. That may be true in some cases; Why Investing in Real Estate?there is very little control over savings, stocks, and mutual funds. In Real Estate, you have absolute control. In addition to control, it offers other advantages. For instance, you purchase a piece of Real Estate at the right price, in a good location, well built, maintained and managed you are sure to enjoy these other advantages of Real Estate.

  1. Cash flow: Checks come in every month/year.
  2. Leverage: Bankers will line up to lend you money for investing in property. Ask your bankers if they will lend you money to buy mutual funds, share.
  3. Tax holiday in most States in Nigeria: Because of huge housing gap in Nigeria, the government offers tax break for Real Estate. Nobody taxes on whatever you earn on you property at least for now in Nigeria. This tax deferred treatment is not available for people who invest in stocks, bonds and mutual funds.
  4. Predictability: To a large extent, you can predict what your estate can give you in the next two, three or four years. If inflation goes up by 10% in year 2017 for example, you could choose to increase your rent by 15% to care for the inflation, but your banker can never increase your interest rate on your savings because of the inflation. It will even be the reason why your stocks/ shares will not earn you dividend during the year. Once you buy right, your checks keep coming every year like clockwork. This certainly beats watching the vicissitudes of the stock market… feeling good when prices go up and feeling bad when prices come down. Many have committed suicide when their stocks fell like packs of cards.
  5. Creativity: the value of property improves through creativity. An empty plot land can be change to several things, or one can buy a house and fix it up or a family home can be converted to apartment or condominiums.
  6. Appreciation; because Naira is going down in value, Real Estate tends to increase in value. Also as population increases, demand increases which also drives up prices.
  7. Real Estate does not go obsolete; Real Estate is slow, technology does not affect it, World Wide Web. You do not need internet to make it in real estate, no e-mail is required. You can make your money in real estate as long as you buy the right property, in the great location, at the right price and with the good management.
READ ALSO:  Quick Return on Investment (QROI) in Real Estate

Now you understand why banks do not lend money to buy mutual funds and insurance companies do not insure them against losses.

When Donald John Trump was asked why he like investing in real estate he answered “because I like breathing, I like freedom. It doesn’t go completely bust like many other industry do. It rarely if ever becomes obsolete. It’s exciting. It’s tangible. You can actually go and see what your investment”

If you are thinking of investing in real estate and don’t know how to go about it, why not talk to us or send mail? askme@propertymatters.com.ng, 09055522231

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ORY MARTINS

Ory-Martins has been consulting in management and real estate for more than 10 years now. He is Chief Executive Officer of Boeing Luxury Estate Ltd, a foremost real estate developer in Nigeria, Principal Partner, MP Hills Consulting and CEO of Inicreat PMA Ltd, a real estate consulting firm. He is an On Air Personality with major radio stations in Nigeria

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