You probably already appreciate how lucrative real estate investing can be. You should also know that real estate is one of the surest ways of building wealth not only for yourself but also for your future generations. For many, one of the key attractions for investing in real estate is having a passive monthly income from rental property. There are a number of other factors that attract people to invest in real estate and these should encourage you further to get started – especially now. Some of these factors include the following;
- Real estate has a steady appreciation over time regardless of what you do or do not do on your property. Land, no matter how far from central areas will eventually gain in value as populations expand demand for land increases. With rental property, you expect a steady increase in value over time which translates into a higher value should you look to sale or faster return on initial investment from rental income. Appreciation of rental properties also helps in any potential line of credit for future use with your property as collateral.
- Improvements to your real estate property increases the value of your property faster. With most properties in attractive locations, investing in renovations and general improvements to your property will help your property both in rental and sale markets. Small improvements can add significant value even double the amount spent on improvements. A few improvements to consider include; a kitchen upgrade, tiles, paving, fresh coat of paint, electric fencing, automated gate, water borehole, back-up power generators and so on. These improvements vary from one property to the next and you need not do all. Get in touch for some tips on what trends within your property’s specific area may be with regards to needed improvements to keep up with competing properties.
- Investors during economic down turns tend to get good bargains and higher returns on their investment, this is true for real estate investors too. Invest when the waters are muddy! Currently, rental prices have seen a steady increase in some market segments following general inflationary pressure and changes in supply and demand in Zambia. An interesting observation here is that whereas rental payments in some market segments have increased, mortgage loan payments remain the same. This therefore offers increased gains for the investor even in the short term. Get in touch for market insights on which property markets you should be investing in currently.
- You can use “other people’s money” to invest in real estate. This is another good reason why you should invest in real estate. Most banks provided you have a good and long standing with them will be happy to finance your real estate investment as they are assured of a good solid security with the property investment. While banks and other lending institutions may be extra cautious during tough economic times, they are still happy to lend to profitable ventures provided you have a good track record.
These are just some of the many factors that should attract you into investing into real estate today. Have any other hints or questions? Get in touch or feel free to leave a comment here. For regular property investors, we invite you to join our exclusive special investments pre-market alerts, click here apply to join.