Real estate is not a new way of making money. It’s been there for ages. But it is an effective way to make a great amount of money and it is fairly reliable when the right decisions are made one it. One has to think forward and be able to make fact-based decisions to make money in order to make wealth from it.
The goal of real estate investing is to make profits by buying low and selling high. In order to do this, you have to make a guess (an Educated guess) as to what will happen tomorrow or next week or next year, or the next ten years. You are not to make decisions based on what happened yesterday, last week, or ten years, you look into the future of that location.
Take a flashback to the area or neighborhood you grew in. Your parents bought or rented that apartment when the area was new or growing. That neighborhood is no longer new, so you shouldn’t be looking to buy or invest in an apartment around there. The area is no longer on its way UP, its on its way DOWN, so you avoid locations as such
As residents are becoming older, so are the buildings getting older. That is how real estate is. What goes up eventually goes down. So, you should strive to buy when the area is on the rise and not when it is declining. Although, there are exceptions to this, there aren’t many exceptions.
When you decide to invest in real estate, you need to find HOT markets. Hot markets simply put, are the locations where people are RUSHING TO. Determining where people are rushing to is where the work is.
Buying in an area that is already popular can also be a hot market, provided you can get a good deal on the property. Finding out about the upcoming infrastructural changes will help you determine where people are going to, and where people are going to is where the hot market is.
When there are infrastructural changes such as highway construction, entertainment facilities, and new business buildings in an area, they increase the value of that real estate area. Base your real estate decisions on cold Hard facts i.e. Verifiable facts and not on the hope of what you think will happen and the gist gotten from your barber
When you get your facts, you then weigh the risks against the potential reward and see what comes up. Remember to get yourself good advisors in persons of real estate consultants and attorneys to help with your decision-making.
What should you look out for when searching for
Keep an eye on large companies and corporations. When corporations build and expand their businesses, they move and so does the real estate market move to the new location. This increases the real estate appeal of that area. For example, every since Dangote started building his refinery in the Lekki free zone, that area has become a hot market. Businesses and homes are on the increase around there. Both businesses and houses will continue to grow in that area
Yes! Business location and relocation can cause real estate prices to go up and can create hot properties for investment purposes! So, look out for large corporations and their expansion plans. It helps tell where the next market is heading to
You have to know when to invest, hold, fold, or sell your real estate
The choice to invest in real estate should majorly be based on solid facts.
Your cousin telling you that he HEARD that a business complex or refinery is going to be built is NOT a fact. It’s hearsay and you shouldn’t bet a lot on hearsay!
Investing in real estate is an excellent way to get a very high return but you really do need to know what you are doing to keep from losing your money, time and resources.
So, get out there and keep your ears wide open for great information that will guarantee you your next big real estate deal.
