Investing in real estate has long been seen as a key component of building wealth because it gives people and organisations a physical asset with the possibility for consistent growth and long-term stability. Despite the volatility of the real estate market, purchasing real estate has always been a wise financial move since it may act as a hedge against inflation and yield steady returns.
“A good man leaves an inheritance to his children’s children”
Clearly defining your investment goals will help determine the type of property, location and financing options that align with your objectives. Assessing your financial capacity, ability to cover expenses and potential maintenance costs is also a major factor to consider. Due diligence and research including title deed search, inspection and assessment of any potential environmental issues is also a key consideration before venturing in property investment.
Land appreciation is one of the main reasons why investing in property is considered a sound financial strategy. Over the long term, land value tends to appreciate, providing investors with the potential significant capital gain. This may be attributed to factors such as, economic growth and development, infrastructure development, urbanisation and value additions as Optiven CEO George Wachiuri puts it,
“The best time to buy property here at Optiven is just after we have launched. Once the roads start coming up, water reticulation is done, the Optiven state of the art gate is set, them definitely the prices go up”
A title deed can leverage on wealth creation meaning it can be used as collateral to access capital from financial institutions. The benefits include securing a larger loan and through the title deed, the rates are lower compared to unsecured loans. This can help one increase potential returns and is a valuable tool but it is important to understand the risks involved and make an informed decision.
Property investment offers potential for diversification of asset portfolio reducing the risk and enhancing potential for growth overtime. By understanding the risks and potential rewards, conducting due diligence, and seeking professional guidance, you can increase your chances of success in the world of property investment. It can be a rewarding and successful path to wealth creation and generating income.
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