THE REAL ESTATE WHYS

Real Estate comprises of properties made up of lands, and, the buildings on it, as well as the natural resources of the lands. Real estate could be classified into four, namely:

Residential real estate- Includes houses, new constructions and resale homes, condominiums, townhouses.

Commercial real estate- covers  non-residential structures such as office buildings, ware houses and retail buildings.

Industrial real estate- includes factories, mines, manufacturing buildings. Such buildings could be used for research, production, storage, and distribution of goods. Although Some buildings used in the distribution of goods are considered commercial real estate, the classification is important because the zoning, constructions, and sales are handled differently.

Land- comprises of vacant lands, farms and ranches. The subcategories within vacant lands include underdeveloped, early development or reuse, subdivision and site assembly.

Investment in real estate could be done directly- by actual purchase of land or property; indirectly- through investment into trusted real estate firms, buying shares in publicly traded real estate investment trust or mortgage.
The indirect investment methods may offer less returns and less control, but they are more liquid than owning physical real estate and don't require in-depth knowledge of the real estate business.

Some of the benefits of investing in real estate include:

Provides stable investment with on going income.
An excellent hedge against inflation.
An alternative means of saving for your children's future.
Provide a home for yourself and for others.
Help to boost the local economy.
Generates wealth.
A great income generation plan for retirement.

One of the greatest benefits of having real estate in one's investment portfolio is for mitigating risk. Real estate always grows in value, especially in develoing regions like Africa where the property market is not as matured.

There are also what could be termed challenges of real estate investment as stated below:

Maintenance- This could cost a huge sum. Aside monetary cost, the physical and mental effort required may be high.

Time consuming- Investing in real estate could be time consuming and often requires an agent or manager to oversight responsibilities, which could lead to additional cost.

Increased loss and liabilities- Investors are required to have a risk level. Real estate is dramatically affected by condition of the immediate area where the property is located

Legal difficulties- Having legal troubles could cost a lot of money and bring strain to the person involved.

Dealing with a reputable real estate investment company ensures investment is done right, thereby overcoming most, or, all of the challenges identified above. Some real estate investment companies offer investment advice to investors, in terms of maintenance, risk, liabilities; involve in resale of properties; make only properties confirmed to having no government or third party interference available to investors. Hence investors are guided and supported to making the right decisions.

As it stands, the advantages of investing in real estate supersede any identified challenge. Everyone should own at least one house or a piece of property. It is workable.