Dennis Isong: The Dynamism of Real Estate Investment

Real estate is an industry with diverse opportunities. The industry is becoming prosperous and a lot of people are now investing in it with one goal in mind: to make money. Let me be real, the industry is fertile. But before you go into real estate, you need to understand the dynamics of the industry and the components that best suit you.

Real estate majorly involves two parts: land and structures (also known as elements on land). Real estate involves land and the things that can exist on that land, such as houses, factories, farms, and others. People invest majorly in land because they believe they would have a share of anything that grows on it. Others invest in the things that grow on the land because land deals can be tedious.

Here is some good news: real estate works for everyone. This means that everyone can venture into the industry and prosper. The most important things are observation and examination. Observe an angle you think fits and examine its intricacies. Another thing is that almost every part of the industry is promising. For instance, if you invest in land, it appreciates annually and you make back double the money you put into it. The land can be developed or leased out for farming. One of the major things that aid the prosperity of land investment is the location. Location does a lot of good for your property. In fact, it is the highest determinant of how well and fast your investment can prosper.

Real estate investment is also referred to as one’s property because anything that holds and adds value to your wealth is your property. Your property can be a residential property like a house, commercial property like a business, or industrial property like a firm.

Residential property brings in more income. This type of property has a higher chance of bringing a return on investment for anyone thinking of focusing his/her real estate investment on it. People always need a place to live, it’s natural for humans to seek shelter, so residential property is a good investment. Examples of residential properties are family houses, villas, hostels, and so on. Archaic houses can be restructured to fit a modern form so they can never be outdated. They’re easy to rent out or secure financing for them due to the low cost of entry. There are multiple forms of investing in residential property.

Commercial properties are majorly for commercial purposes and are found in specific areas. In Nigeria, commercial properties are also found around residential properties. However, it is not ideal for commercial activities to be carried out in residential areas. Commercial properties include restaurants, schools, shopping malls, and so on. They are mostly leased because a business might lose its momentum. They, however, have long-term leases. Commercial property generates more income all year round. In a single commercial structure, different businesses can be established.

Industrial property is unique. This type of property is specified as the only thing it is meant for is the manufacturing of goods. Also, it includes storage facilities, production houses, solar generating stations, warehouses, and so on. Industrial properties are kept far away from residential areas. It is often located in far-off places so that people won’t be affected by air pollutants coming from the manufacturing company. The capital for investment largely depends on its nature and the location of the property.

Generally, real estate investment is lucrative and infinite. If you’re willing to invest in properties or real estate, this article should be an eye-opener to how the industry works. 

***
Featured Image: Dreamstime