5 Reasons why it's a great time to invest in real estate!
Kennedy Karani
World leading Data Science consultant and trainer with over 20 years experience, currently working at Indepth Research Institute (IRES)
The value for Real Estate will always appreciate over time!
If you buy a car today at USD 30,000 the likelihood of selling the car at USD 31,000 after using it for three months is often unheard of. However, if you buy a commercial real estate property with the same amount of money, be assured of making more returns on investment.
When it comes to Rent, Inflation is Your Friend!
The effects of inflation always drive up home construction costs as well as rents. With population growth, there occurs a demand for housing which supply cannot fulfill. This results to increase in rental prices.
You have a high tangible asset Value!
They always say, seeing is believing. Believing in something is further reinforced with being able to touch. Some investments like stock exchange can leave you with no tangible asset value. However, with real estate, you will always have value in your land and your home. You can also get the homeowners insurance with best policies to protect your asset in worst-case scenarios like fires and demolition.
Real Estate improves your financial know-how!
It might appear like a far-fetched advantage but in reality, investing in real estate will teach you, financial disciple. Startup acts like working out the numbers in terms of purchase costs and other expenses are essential. Once you have acquired an investment, you will need to be able to calculate rental income, tax deduction, insurances, and profits. You also need to be capable of managing your money and making the most out of it. If you figure out how to manage real estate, you are a step ahead in managing your finances!
It’s relatively easy to be financed!
Just look around at big companies around you. It’s almost certain they have an investment property. Money lenders like property! Most banks business models have incorporated home loans. It may feel like you are applying for a mortgage but lenders are more likely to lend on residential property than any other assets used. This makes it even easier to borrow to invest in property that any asset!
Investing in real estate is great for many reasons. These pointed reasons are only the beginning of your journey to understanding the topic, as it has barely scratched the surface. Real estate investing takes years of practice, experience, and exposure to truly appreciate it, understand it and master it. In this regard, Indepth Research Services has scheduled short courses in Commercial Real Estate to get you started in understanding concepts in real estate.
By: Annet Wekesa