Real estate is something that you can physically touch and feel – it’s a tangible good and, therefore, for many investors, feels more real. For many decades this investment has generated consistent wealth and long term appreciation for millions of people. Depending on the location of your real estate, you can enjoy sizable returns on your investment.
There are two main types of real estate: commercial and residential. While other types exist (mobile home parks, strip malls, apartment buildings, office buildings, store fronts and single-family homes), they generally fall into those two categories. Making money in real estate isn’t as cut-and-dry. Some people take the “home flipping” route – searching for distressed properties, refurbishing them and selling them for a profit at a higher market value. Others look for properties that can be rented to generate a consistent income.
There are many positive benefits to investing in real estate, but like all investments, real estate also has its drawbacks. Most importantly, the investment is illiquid. When you invest in a property, you usually cannot sell it right away. In many cases, you may have to hold the property for some years to realize its true profit potential. Also, the closing cost can add up to millions of naira, and include taxes, commissions, and fees.
Further, real estate prices have a tendency to fluctuate. While long-term prices generally increase, there are times when prices could go down or stay flat. If you have borrowed too much against the property, you may have trouble making the payment with a property that is worth less money than the amount borrowed on it. This is why you need to invest with South and Sttes Properties Limited, the company will advise and guide you through real estate investment.