How do you harness the wealth of earth, namely creating a comfortable level of financial security through investment in real estate? Financial well-being is that sense of security and feeling that you have when you have enough money to meet your needs and serve a few wants. It is having the financial freedom to make choices that allow you to enjoy life. Therefore, it is only natural that you are on the quest to know how to harness the economical wealth of our planet earth through real estate.
How can you commence your journey to creating wealth through real estate? Consider these three beginners tips:
1. Buy real estate in up and coming neighbourhoods.
Our environment is constantly expanding, and while some places have attained the atmosphere of saturation some neighbourhoods are deliciously virgin or semi-virgin. These virgin or semi-virgin environs are the up and coming neighbourhoods. An up and coming neighbourhood is a promising area that shows signs of being highly developed in the near future. As a beginner investor (or not so new investor), you can start with using a simple loan or buildup or your savings and turn your investment in an up and coming neighbourhood into a real estate fortune. How so?
One of the fundamental characteristics of real estate investment is appreciation. This makes real estate investment quite forgiving because no matter what happens, even where you believe you have made some mistakes as to fit and purpose of your investment, you get to reap appreciation in the long run.
How do you know an up and coming neighbourhood? Three indices that will serve you well here, namely: an increase in population growth, an increase in job growth, and an increase in rental demands.
DID YOU KNOW THAT THERE ARE ABOUT 24 MILLION PEOPLE LIVING IN LAGOS, NIGERIA? THIS EQUALS THE SIZE OF ABOUT 30 AFRICAN STATES. TO SERVE THE NEEDS OF THE GROWING POPULATION OF LAGOS STATE, WE WILL NEED TO BUILD A MILLION HOUSES EACH YEAR FOR THE NEXT 10 YEARS. IMAGINE YOUR POTENTIAL FOR WEALTH IF YOU CAN EFFECTIVELY SERVE THE NEEDS OF THE GROWING POPULATION FOR SHELTER, SHELTER BEING ONE OF THE BASIC HUMAN NEEDS.
2. Rent our residential real estate.
It is obvious that you need to own residential real estate first before you can rent it out. Real estate investment can be residential through purchasing land and converting it in into structures which you can rent out, or purchasing built structures which you intend to rent out.
DID YOU KNOW THAT A ONE-OFF RESIDENTIAL PROPERTY CAN OFFER MORE FLEXIBILE CASH FLOW INCOME THAN ANY OTHER TYPE OF REAL ESTATE INVESTMENT?
In addition to residential shelter, we all need shelter as places of work, leisure, education and as a base for many other services that sustain modern society. Therefore, while it creates a sense of achievement in you to actually own land or property, the only way you can grow economically and create a sustained or alternate income is to invest in or build residential property or commercial property that is in regular demand. A very important investment tip is to make sure that the real estate you are investing in produces both acceptable cashflow and appreciation over time. Smart real estate investing will ensure that both elements of cashflow and appreciation are present, not just one or the other but both.
3. Time the Market.
To optimize your income, timing is everything. Whilst there may be no need to consult a crystal ball that tells you with precision when to buy, IT HAS BEEN PROVEN CONSISTENTLY THAT THE BEST TIME TO BUY REAL ESTATE IS WHEN THE MARKET IS SLOWING MOVING UP. The major advantage in these areas is that you buy relatively cheap and thereafter reap very high returns and financial rewards as the time goes by. Due to the fact that these areas are relatively cheap, you would actually be able to make your money from the onset at purchase, and have it go boom! at appreciation!!! If you are able to, by all means endeavour to invest in more than one property in these types of neighbourhoods.
How do you handle your real estate investment as a beginner or a mid-level investor in an up and coming neighbourhood? Well, it is wise to relax and give your investment(s) the time to grow. During this period, please stay informed on socio-economic changes and developments. It is of prime importance to seek the advice of real estate experts and professionals in your efforts to make an investment. TO STAY SAFE IN REAL ESTATE INVESTMENT, DO YOUR HOMEWORK AND FOLLOW YOUR GUT. TRUST YOUR INSTINCT. And where your instincts has been rendered stale through battering from environmental or social factors, hire a professional instinct!
Land harbours a wide range of resources that can cater not only to our economical wellbeing, but to our physical, environmental, cultural and social wellbeing as well. Therefore, it is not an overstatement to affirm that the wealth to be found in land is massive. Land is the ground on which we navigate our affairs on planet earth. The earth is what we all share in common so it is essential that we make the best use of it, whilst sustaining it at the same time.
Which area in your state can be identified as an up and coming neighbourhood?
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