Real Estate involves different aspects like Land, Houses, Apartments and Commercial buildings. It is a vast term but most people use it to refer to properties (residential and commercial). You can make money from real estate business includes buying, renting and selling these different properties but if you’re looking for an investment opportunity it is better to know exactly which aspect of real estate you want to invest in. There are many reasons as to why investment in Real Estate is a great opportunity and below are 9 of them:
Banks are lending:
Most people hesitate investing in real estate because they don’t have enough money but today in Uganda and Africa at large, banking institutions offer home loans to people who can not afford the properties. The rates are now affordable and you can now use our online mortgage calculator for all your mortgage solutions.
It is now possible to invest in real estate at reasonable prices. If you have a small budget you can invest in plots of land that do not cost a lot, however if you have a bit of cash and looking for a quick investment look for bank foreclosures because their prices are slightly lower than normal prices.
Technology has made real estate investment very easy. When you buy a house, it is not hard anymore to move around looking for clients, these days you can list it online and get clients to call you and schedule visits. The internet provides a platform to list properties and make them visible to many people.
Knowledge is Free:
Investing in real estate is different from other investments. When you invest in other fields like tech companies you have to learn about statistics and finance but in real estate all the knowledge you need is provided online like market size, pricing of different properties according to different areas and you can also hire agents/property managers that can assist you. .
Investing in real estate has a positive cash flow. Let’s say you buy a house at 80,000,000 Shillings and rent it at $1500 per month, you will make an investment return in 5 years and after 5 years the rest will be profit which you can reinvest in another business, save for future financial challenges or use to settle debts.
The Loan Pay Down:
When you invest in real estate through a bank loan, your tenant is actually the one paying your mortgage not you and after 30 years your house might be your main source of income, feeding you and paying for your kids’ education.
The value of most real estate aspects i.e land always goes up instead of going down. Properties don’t lose value instead they increase value from time to time.