5 Lessons About Real Estate Market You Can Learn From Superheroes

[Lucilla Mcquiston]

My answer is always aside from the possibility of generating significant income making investments in real estate generally provides long-term advantages.

I will discuss five of these advantages in the following paragraphs:

1. You can refurbish (to Enhance the Value and Value) Real Estate

After you buy a stock that you own for a time and hopefully sell it for an income. The value of your stock is dependent on the management of the company and the success of their business that's beyond your control.

Different from other investment instruments, like stocks, for example which's rate of return are dependent on third party (e.g. the management of the company) The real estate investment are entirely yours to control.

Even though you will not be in control of change that might happen in economic or demographic factors or the effects of nature induced changes, there are many other elements that you can control, to improve the value of an investment.

Examples include aspects relating to adding repairs, or improvements/enhancements to the physical property and tenants you allow to live in it.

If you're careful and follow the right steps, the worth of your investment will increase, resulting in increased wealth for you.

2. Real Estate Investing, When Done Right, is Proven to be profitable even in times of recession (like the one we're in currently)

It has , on numerous occasions been utilized to get an emergency bailout, in the wake of economic setbacks, for instance those that many have experienced during the economic downturn happening in Nigeria currently.

Many of my clients have confided in me that because of the present economic situation, they are not sure of profitable channels to invest their money. Some of them have made investments with treasury and bond bills but are in dire need of an investment new.

We had extensive discussions, and based on my experience as a real-estate consultant I suggested landed property investment as the most suitable and secure alternative channel of investment.

This is because regardless of whether all businesses collapse, land will rise in value. Then to drive my point to the point, I finished with a pertinent quotation from an former American president:

Unexpectedly, the customer chose to take my advice and sign up: it was the obvious, common sense choice to take!

3. Real Estate Investments Are Immune to Inflation

Also, investing your money in the purchase of real estate in good condition is a way to shield yourself from the devastating effects that inflation usually is a major factor in other investment strategies.

This is because the value of real estate generally tends to increase when inflationary pressures. This is why the property value as well as rental rates are rising when inflation is rising.

The nature of real estate offers owners the benefit of being able change the rates they offer, to be able to adjust to the changing rate of inflation.

Monthly rents for example can be increased to offset inflation , thus creating an extra cushion against inflation related losses that other investments experience.

4. Real Estate is Uniquely suited to Being Universally Acceptable as Collateral in securing funds from Banks

Nowadays, real estate in the form of either building or land, with legal titles (i.e. Certificate of Occupancy (aka "C of O") is the most commonly recognized and accepted collateral in Nigeria as well as different parts of the world.

It's the only one that has the advantage of protecting all the rights of both the loanee as well as the lender (that's who lends the funds) thus ensuring that funds can be released i.e. after verification is completed, and terms and conditions are reached upon.

The latter is considered to be one of the biggest advantages that the private C of O is over the global C of O, because the latter (i.e. particular C of O) is the one that will be required by the prospective borrower to the extent of any future financial transactions in Nigeria.

5. Real Estate Investing Allows Use of Other People's Money

In other words the same way, you can make it even if you don't have the funds. It's just a matter of knowing the steps.

This is due to the fact that the real estate market is physical property also known as an asset that is hard to acquire. This characteristic makes it attractive to financiers i.e. people with money to invest.

This is why a lot of real estate assets are purchased through debt - not unlike other investments like stocks, which cannot be resold and thus perceived as more risky investment options.

Therefore, real estate investments can be carried out using cash, and mortgage funding. In the second case, payments can be so designed to permit payment of very low amounts initially, offered by the owner or a willing third-party.

These payments will occur on landed property which will keep increasing in value during the course of these payments and perhaps even longer. That further inspires confidence in the minds of those financing the purchase, knowing and ensures that the investment they make is safe.

Little wonder that real estate investing continues to grow for many years!

A SPECIAL NOTE However, despite the stated benefits I continue to advise prospective purchasers that due care is a vital element to succeed.

If you are doing everything by yourself or utilize industry professionals like myself, it's vital that you exercise caution and be equipped with the right information and training.

This is something I advise my clients to do regularly in order to make smart decisions when it comes time to invest.

The importance of what was said above cannot be overemphasized, particularly in Lagos where many of individuals, were badly burned as a result of failing to follow the appropriate precautions.

My mission is to ensure that clients avoid having such horrible experiences, through bringing my many years of experience in this field to bear in serving them.

References/Related Article:

Read more about the benefits of real estate investing, in this excellent report I found on http://www.realestate.com/

At first, real estate brokers were referred to as middlemen and optioneers. In the past, the normal method was for a middleman to know about a property for sale, however, to hide it and from the other middlemen. It was difficult for middlemen to receive a payment for their services . As a result, they were forced to resort to strategies that were not always in the seller's best interests. Optioneers, on the other side, were typically more successful in obtaining their fees because they would hold the property with an option to purchase or sell it to buyers at a price higher than the option price, pay the seller the fee for the option, and keep the remainder.

The initial real estate brokerage industry was unorganized and employed methods of brokering that were frequently untruthful, susceptible to fraud, and profited from sellers and buyers. Later, a newer idea of the real estate broker acting as an agent for and performing a fiduciary duty to the seller and receiving compensation for his services was developed. This new idea pushed the broker-seller relationship towards a higher level of service and duty. Brokers were also able to advertise properties for sale with contracts. These contracts are what we call today when we call listings. The first forms of listings were referred to as open listings. Open listings are an instance of a non-exclusive listing contract that allows a real estate agent to put up a property for sale, find a buyer , and get paid upon the closing of that transaction.

There are other brokers who may hold open ads for similar properties but only the broker who actually discovered the buyer would earn an amount of commission. In addition, none of the brokers would get paid a fee when the seller sold the property. The open listing discouraged collaboration among brokers, as Visit website each broker could obtain its own listing. To eliminate the open listing issue the exclusive agency listing became popular.

An exclusive listing is a type of listing agreement in which sellers only offer listing brokerage's fee if the buyer is acquired through the brokerage's efforts , or through the effort of any other brokerages. This means that in some situations, for instance, For Sale through Ownership, the listing brokerage might not receive compensation until an item is purchased. If the listing is exclusive to an agency, the listing brokerage or another brokerage who is associated with the listing brokerage must find the buyer in order to claim compensation.

The listing of the exclusive agency encourages agents to find buyers to list their listings, as the listing brokerage pays for the seller's brokerage's commission. However, the seller doesn't have to pay fees when the seller locates the buyer. The exclusive listing by the agency eventually resulted in the right to sell in exclusivity listing.

The only right-to-sell agreement that is exclusive, the listing broker is guaranteed compensation in the case of a sale, regardless of the buyer. The exclusive right to sell listing guarantee an agent for the seller to get an amount of money, even the broker is competing or the seller makes a sale. It is the best protection in the case of the listing broker and is considered to be in the best interests of the seller as the listing brokerage puts energy and resources into advertising the property. A commission is guaranteed over the duration of the contract.

Although the exclusive right to sell listing became well-known but there was no collaboration between brokerages, since a buyer looking to purchase an item would need to work