INTRODUCTION:
Everyone is talking about real estate. What exactly is it about? What makes it so popular that people are rushing into it? These are the questions we are answering today as we explore real estate and its types.
Real estate refers to land and the structures on it, whether natural or man-made, including developments and improvements such as buildings, homes, railways, parks, and so on, which can be used for commercial, agricultural, and residential purposes. Owning real estate goes beyond the financial aspect; it provides stability and fosters a sense of belonging.
REAL ESTATE FLAVOURS
Land
Land is the bedrock of all real estate properties. These are empty or vacant lands, which the owners can decide to develop for different purposes. The most interesting part is that any natural resources that come with the land, like trees or minerals, automatically belong to the owner. Imagine owning a plot of land with trees like Hevea brasiliensis, the primary source of natural rubber, or minerals like crude oil, coal, or zinc.
Residential Real Estate
Housing is a primary need – everyone needs a roof over their head. These are buildings or properties that are used for housing purposes. They are designed for individuals or families. Such as townhouses, duplexes, single-family homes, and apartments or flats. Residential real estate plays a pivotal role in the economy. It provides homes for families to live in, and as an investment, it serves as a means of securing a future for generations to come.
Commercial Real Estate
Commercial real estate is primarily used for business purposes. These properties are leased out to tenants who use them for various commercial activities, like schools, shopping centres, shops, restaurants, hospitals, or hotels, etc. This type of real estate is influenced by factors such as location, economic conditions, market demand, and zoning regulations. Port Harcourt Farm City, a development by Velox Real Estate & Investment Location is a perfect example of commercial real estate. Here, owners of the plots of land can decide to go into livestock, plantain plantations, cassava plantations, or any farming system of their choice.
Industrial Real Estate
These include land and structures used by industries for business purposes. These properties are very important to the local economy and include construction, factories, mechanical production, and manufacturing. A company can decide to take over the construction of a major road leading from the community to the main market. This helps improve infrastructure, facilitate trade, enhance accessibility, and boost the economy of the region.
THE SECRET OF SUCCESSFUL REAL ESTATE VENTURE
Pondering about what type of real estate to invest in? Don’t be in a rush!
While real estate is widely regarded as a good investment, it is important to note some key factors to ensure a well-informed investment decision.
Capital: The capital needed for a real estate investment varies based on the investment goals, property size and type, and market conditions. Capital is needed for the purchase of property, property improvement, maintenance, emergencies, etc.
Location: This is a critical factor when discussing the profitability of real estate. The location of the property influences its value and income potential. Locations with good access to roads, markets, schools and developmental pointers, tend to attract higher demand, leading to high returns on investment.
Investment Purposes: It is important to clarify the reason for your real estate investment. Are you purchasing the property for personal use, rental income, business, short-term, or long-term profit? Clearly defining your investment purpose guides your decision-making process and aligns with your financial goals.
Profit Opportunities: Do not be too desperate to start. Before investing in real estate, conduct thorough market research to gain an understanding of the profit opportunities available. Evaluate the rental income and the appreciation potential of the property.
Obtaining Loans: Borrowing or taking loans can be an option, but be careful and make sure that you understand how to handle loans to avoid high levels of debt or over-leverage.
CONCLUSION
Although real estate is generally considered a wise investment, it is heavily influenced by its location, and other variables that can impact its value include employment rates, the local economy, crime rates, transit options, school quality, municipal services, and property taxes. All these will enable you to know which type of real estate you want to invest in to suit your preferences, financial goals, and risk tolerance.
Real estate is undoubtedly one of the best investment options because of its value-adding potential. This helps in wealth accumulation, economic growth, investment returns, and financial security.
Contact Velox Real Estate and Investment Limited to assist you in making informed real estate investment decisions.
