By THECONSCIENCEng
If your goal is to become a millionaire, increase your networth and build generational wealth in 5years from now, then, read this.
Lets talk about real estate investing.
Hear Mike Adeyemi CEO Realtormax International Nig limited reveal key nuggets to help your journey.
Why Real Estate investments?
Real estate is an attractive investment for several reasons, and i’ve scouted some of my favorite resources to compile a comprehensive list that breaks down how this asset class can provide value.
So let’s dive into why you should be investing in real estate right away.
All asset classes are inherently volatile to a certain degree, but what makes real estate stand out from the pack is the fact that it’s always in demand. We take for granted that necessities like food, water, clothing, sleep, and shelter are essential for one’s survival.
Shelter always makes the list!
However, we think that volatility has a bad rep… when we hear it in conversation, especially without any context, we immediately think: decrease! However, this may not always be implied as there is potential for value growth too, based on the circumstances like the following:
If a property is perceived to be in poor condition, it comes as no surprise that unless it’s maintained consistently, it is worth less than it would be had it been well-preserved.
At realtormax 50% of our client has done business with us for this singular reason . Forced appreciation and we can say that again and again.
A property’s value can be raised by implementing improvements, either through maintenance, renovations, development to enhance the value of the land or a house look and feel, as well as its appeal for those looking for modern estate project with many amenities. Or modern home designs.
…is visibility. This might seem insignificant on the surface when compared to other benefits the asset has to offer, but it’s not one to take lightly. Assuming ownership in an asset that exists in material form provides great value, especially when compared against assets like stocks whose visibility is mainly limited to chart form. That’s not to say that stocks aren’t great investment opportunities, they are! And, i highly encourage investors to take a look and invest in assets to diversify their portfolios.
Still, concerning tangibility, i’ve listed some of the key reasons below as to why we think this is a factor worth considering:
The positive psychological effect stems from the fact that as an investor in real estate, one gains a strong sense of ownership, be it as a full or partial owner, as the asset not only exists in material form but appreciates in value.
Remember when i said earlier that real estate has been and always will be in demand? That means that the asset holds significant monetary value and as ownership may be transferred over time, the asset can be transacted (assuming the market is liquid).
Since i touched on the value behind value appreciation, let’s build on that. One of the core benefits of real estate is that property values grow over time like that of equities, for the reasons we already listed above.
Additionally, forcing appreciation is not a new concept, as it is a highly favorable option for a property that may not be in mint condition. Changes as simple as adding infrastructure to a virgin land or changing the flooring and lights, re-painting the walls, and switching up the furniture aesthetic of a dilapidated house can justify considerable price increases despite the added costs.
If the property is being rented out monthly or yearly , the costs are then covered through the monthly/yearly payments from rent.
At realtormax, we recommend a standard holding period of 5 years reason being we want to maximize the returns our investors receive over their investment term! With every property we launch, we provide a full breakdown of how much we estimate the property will be worth when it’s time to sell it and with our buy back policy you really can not hassle for buyers. We’ve got you covered with all the numbers and figures you need to make an educated decision.
Speaking of rent, another core benefit of rental property investments is the predictable cash flow generated from monthly or yearly payments.
Note that i refrained from using the word “consistent” because it’s inevitable that sometimes, a property may remain vacant for some time or the existing tenants might not be able to pay on time or default in payment due to bad economy.
Still, who could pass up the possibility of having a second income, especially one that you don’t have to work for?
Hedge for Inflation
Why not end this article like i mentioned in my last article where i made a comparison between gold and real estate? Like gold, real estate performs well and even better during inflationary periods. Let’s break down the three reasons why…
During periods of inflation, rental income grows in tandem with prices, as costs associated with goods and services are passed on to tenants. This allows investors to sustain their returns over the inflationary period.
Capital appreciation
Investors can build long-term wealth through the value appreciation of their property as real estate prices generally follow an upward trend.
The intrinsic value of real estate
Real estate will always maintain its intrinsic value, relative to global population growth. As the population growth rate increases, so will the demand for real estate ownership or rental units.
What are you waiting for?
Real estate is a popular asset class that allows for diversifying an investor’s portfolio and gaining high returns in the long term. Here’s the basic rundown:
It is the largest and most valuable asset class in the world
It’s easier than ever to tap into real estate through accessible investment structures like fractional investing. Which i refer to as co- ownership vest. Or fractional investing ownership
Real estate investors can spread their risk across diverse property types
Investors gain a strong sense of ownership and effectively build a passive “second” income stream
Real estate is less volatile compared to other asset classes
Value appreciation…etc
Ready to invest in real estate?
That is where i come in. Either you want to invest for longer term , or invest in fractional ownership. I’m the guy you should be talking to. As a real estate investor myself and the CEO of one of the fastest real estate company in Nigeria. I and my team are on a mission to help people build wealth in real estate.
To begin your investment journey send me a mail via email address
michealAdeyemi @realtormax.org
adeyemimichealaimglobal@gmail.com
Or whatsapp 07037395817
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