Real estate investing is widely recognized as a lucrative venture that offers long-term wealth-building opportunities. One of the key attractions of investing in real estate is the potential for passive monthly income through rental properties. However, several other factors make real estate an appealing investment option, especially in the current market. Consider the following benefits:
1. Steady Appreciation: Real estate properties have a track record of appreciating over time, regardless of your actions. As the population expands and demand land increases, even properties located farther from central areas can experience appreciation. Rental properties, in particular, tend to appreciate steadily, resulting in a higher value if you decide to sell or a faster return on your initial investment through rental income. Additionally, property appreciation can provide opportunities for leveraging your property as collateral for future lines of credit.
2. Value Increase through Improvements: Making improvements to your real estate property can significantly increase its value, particularly for properties in attractive locations. Renovations and general upgrades can benefit both the rental and sale markets. Even small improvements, such as kitchen upgrades, tile installations, fresh paint, enhanced security features, and utility upgrades like water boreholes or backup power generators, can add considerable value. You don’t need to undertake all improvements; understanding the trends and needs specific to your property’s area can help you prioritize the right upgrades. Contact us for tips on property-specific improvements to stay competitive.
3. Advantageous During Economic Downturns: Real estate investors often find favourable opportunities and higher returns during economic downturns. The current market in Zambia has witnessed steady rental price increases in certain segments due to inflationary pressures and changes in supply and demand. An interesting observation is that while rental prices have risen, mortgage loan payments remain unchanged. This presents increased gains for investors, even in the short term. Reach out to us for market insights on the most promising property markets for investment.
4. Utilizing Other People’s Money: Real estate investing offers the advantage of leveraging “other people’s money.” Banks and lending institutions are generally willing to finance real estate investments, especially if you have a good track record and a solid security asset. While cautious during tough economic times, banks still lend to profitable ventures, providing you with the means to invest without using all your capital.
These are just a few of the compelling factors that make real estate investing attractive today. If you have any questions or would like further insights, feel free to get in touch or leave a comment. As a regular property investor, you’re invited to join our exclusive special investments pre-market alerts. Apply here to become a member and stay ahead of the market.
