Why invest in Real Estate? “Landlords grow rich in their sleep.” -John Stuart Mill. In this modern world, there are several paths to take that result to generation of wealth: venturing into Oil and Mineral resources, the Stock market, International Freight/Logistics, Telecommunication, Intellectual property and Real Estate. The investment roads that lead to the first five channels are narrow; the latter path is the broadest and easiest route to get to the ‘wealth’ destination. Real Estate in its definition encompasses land and landed property (i.e. anything appended to the land, e.g. buildings). Real estate investors range from owners of a small parcel of rural shamba, a suburban home to a complex multi billion commercial or residential estate. Anyone has the potential of being a real estate investor. So, why invest in real estate? 1. Hedge against inflation Property owners are millionaires in their own right, no matter how small the property appears to be – futuristically! A property worth a 100,000 today will be worth over a million in a few years time. The rate at which property prices appreciate is normally higher than the rate of inflation in an economy, therefore property values tend to increase over time increasing the worth of one’s wealth. 2. Saving strategy Due to the illiquidity of real estate, owning a property allows one to develop a rigid saving culture whereby money is put in purchasing a property which appreciates with time (capital appreciation). 3. Acts as security for a loan(s) Owning a piece of estate allows one to get access to bank loans almost to the worth of the property. These loans can be channelled into other money-generating avenues such as running a new business altogether. There have been instances where property owners approach a bank for a small loan and the bank advices/allow them to get a bigger loan due to the high value of the said properties. 4.Sense of achievement The psychological well being achieved from owning a piece of real estate is a worthy ideal to pursue. I come across first-time real estate investors from all walks of life; most invest small and some invest big – they are all winners, for once they set on an investment journey, they never turn back. Some of the locations whose real estate is currently a goldmine for starters in Mombasa include Utange, Mtwapa, Mshomoroni, Kiembeni, Bamburi, Diani and Vipingo. There are affordable plots and residences available for ownership presenting a myriad of opportunities for all. Marshall Field once said that ‘Buying real estate is not only the best way, the quickest way, the safest way, but the only way to become wealthy’. Make the effort to better your tomorrow, and when you are at it be sure to visit myspace.co.ke
Posted on: Wed, 09 Jul 2014 13:00:46 +0000
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