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Two weeks ago, I attended the Finer wealth series in Lagos
The Finer wealth series is an event organised to teach the basic principles for investing in real estate
It was quite an insightful event and I thought I would share with you my lessons from this event.
I'll share my lessons as answers to questions below;
Why invest in real estate?
Buy land, they are not making it anymore. (except maybe in Eko atlantic or Dubai)
This basically means that real estate and by extension, land is a limited asset. If you purchase the right piece of real estate, the value should appreciate.
Also, Real estate is the only investment that makes you a lord. (He/she is not a man/woman who does not own a piece of real estate)
Going into specifics;
- It provides diversification
- You stand the chance to see your asset appreciate significantly in value
- It's great hedge against inflation
- You can influence the performance of your real estate by investing in development or a facelift
- Retirement savings option
How can you invest successfully in real estate?
Location is everything. Understand the fundamentals of what is driving the growth in a particular location. There are prime locations in every location but there are also sub-markets that stand out as well.
Focus on fast growing property investments as a beginner. Consider all growth areas, dont follow trends.
Control is important. Dont invest in property where you don't go to often. (example of Ghana)
You don't buy real estate, you buy terms. Work on making a profit on the buy terms.Always negotiate. Never pay full value and avoid paying the total value at once. The principle is to lock in a value and allow the appreciation of value help you profit.
Finally, keep it simple. Anything not simple is too complex.
Where are the opportunities?
Finally, what's the mindset required to invest in real estate?
Real estate is a long term play. Sometimes, it takes a while to extract liquidity so be invest wisely based on the stage of life.
Be mindful of the opportunity cost of your investment.
You need to believe that it is possible to invest and profit significantly from real estate.
[bctt tweet="Real estate is not really about investing in brick and mortar, it's about extracting value. " username="@tomie_balogun"]
Also, think collaboration not affordability
So be armed with these lessons as you make your foray into investing in real estate