What is Real Estate?
Real estate is the property, land, buildings, air rights above the land and underground rights below the land. The term real estate means real, or physical, property, including houses, buildings, landscaping, fencing, wells, etc. Real estate investing involves the purchase, ownership, management, rental and/or sale of real estate for profit. Improvement of realty property as part of a real estate investment strategy is generally considered to be a sub-specialty of real estate investing called real estate development. Real estate is an asset form with limited liquidity relative to other investments, it is also capital intensive and is highly cash flow dependent. If these factors are not well understood and managed by the investor, real estate becomes a risky investment.
It is about more than just finding a place to call home. Investing in real estate has become increasingly popular over the last 50 years and has become a common investment vehicle. Although the real estate market has plenty of opportunities for making big gains, buying and owning real estate is a lot more complicated than investing in stocks and bonds.
Today, every finance-expert can testify that, real estate investment is one of the best surviving sources of residual income available in the world. It is interesting to note that an overwhelming proportion of today’s and past world billionaires made their fortunes through real estate and in most cases, the journey to wealth starts from just one property and the portfolio keeps growing. Ever wonder why property owners were called “lords”, or as now more colloquially known as “landlords”? It’s because owning properties gives power and financial freedom. There must be a reason why every rich person you know owns multiple properties. Even Donald Trump today remains a billionaire thanks to his real estate fortunes as most of his other businesses have been declared bankrupt.It is particularly gainful to invest in real estate in a growing and volatile economy like that of Nigeria as the real estate provides a safe hedge and store of value against inflation. The low rate of inflation in the country is positive for those that have real estate as assets because as the inflation goes up, so does the value of your real estate. Associated Risks However, in spite of the compelling opportunities that exist in investing in real estate, it also comes with its own associated risks. These risks can most times be avoided when you consult a body with the know-how. Speak to us today at Aridan homes(aridanhomes.com or send a mail to email@example.com), from whence your Real Estate Investments become Real.