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Property Lagos

all you should know about real estate in Nigeria

The Truth About Real Estate

Many people have become rich and are living their dream life through Real Estates. Buying real estate remains one of the quickest ways to become wealthy.  Whether you are buying or selling a land or a home, there are many truths about real estate you should know. This article will focus on the truth about real estate.

 

The Truth About Real Estate

Real Estate is a sure way to wealth.

Firstly, real estate is a vehicle for producing income and acquiring wealth in a gradual process. Real estate provides the highest returns on investment. Notably. investing in real estate is comparable to starting your own business, especially individual holdings like rental homes, raw land and commercial buildings. Investing in one real estate company holdings is comparable to investing in stocks.

 

You need to learn the Ropes. 

Investing in real estate is a lot of work and requires some business ingenuity, financial sense, people savvy and organizational skills. You need to learn about insurance, mortgages and home maintenance as well as the laws that govern such.

 

Also Read: 3 Ways to Invest in Real Estates With No Money

 

There may be no returns in the short term.

Property values go up over time and you can count on real estates’ increasing value with inflation rates and yes, you have to consider at least a decade to alleviate transient ups and downs.

The market does expand and contract, so if you are lucky and buy when low, you can do really well when the market adjusts to normal.

In fact, It is wise to buy in a more established area at a higher cost, or an area with more potential for growth at low cost. If you buy when the market is high, and its crashes, you can end upside down, but in the long term, no big deal.

The only time you can be concerned with anything upside down is when it’s time to sell otherwise, just keep making the payments as usual.

 

You need a thick skin for real estate. 

It is no different from every other business, it can be simple but it isn’t easy. You will always be learning something new in real estate, even if you have been on it for decades.

Real estate can work out, but the truth is, it’s going to take at least a decade on average before you realize much in the value of owning or renting it.

 

Also Read: Top 7 Features of a Profitable Residential Rental Property

 

Expect Some Economic Risks

No business is free from risks. Real estate also has its own risks. During a recession or economic downtime, tenants may not pay their rents. In fact,the value of your property might depreciate.

Sometimes, politics and government activities may affect your profitability. These are some of the risks to expect when dealing in the real estate business.

 

Bottom Line

There are several ways to invest in real estate and this includes valuing all four types of real estate: residential real estate, commercial real estate, industrial real estate and the land. To succeed in real estate, you must have leads to meet or exceed your goals, else, you will not make much out of it.

 

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