Understanding the 5Ws in Profitable Real Estate Investment
In all ages and economic cycles, real estate remains an investment destination where investors will always get value and relatively high return on investment, especially if the investment is done in the right place at the right time and for the right reason. Bonds, treasury bills, equities, mutual funds, etc are all good investment assets class but cannot compare favorably with A safe workplace: Security elementreal estate in terms of reliability, flexibility of use and potential for value appreciation over time.
A good number of people think, erroneously, that real estate investment is for the ‘big boys’ but investment experts reason differently, stressing that investment in real estate takes into consideration the 5Ws consisting of who, what, when, where, why (and how).
As for who should invest in real estate, the experts say it is ‘anybody’ irrespective of age or gender. That means anybody, no matter how young, can invest and this includes women. This calls for women empowerment to enable them invest in real estate as one of the surest ways of protecting their future. Bricks and Mortar are more stable than stocks or bonds; they have long-term growth with income return and this is why people should invest in real estate.
The wide housing demand-supply gap offers investment opportunity whose value is about $363 billion. The deficit is expected to increase by 2 million houses per year at population growth rate of 2.6 percent per year. Though it is important to know that the time to invest is now, what matters most in all real estate investment considerations is where to invest and get not just great value but also good returns.Good yield on any investment is very important because it compensates for the investor’s time, efforts and the sacrifice in terms of forgone alternatives to the investment. This is why where to invest and get good yield is critical.
A couple of years ago, the National Bureau of Statistics (NBS), noted that Lagos State records the highest amount of real estate activities at 37 percent followed by Abuja with 22 percent and Port Harcourt with 6 percent, covering 65 percent of all real estate activities in Nigeria.That statics has not changed, meaning that Lagos remains a compelling destination for real estate investment. This is quite understandable. Lagos is Nigeria’s commercial nerve centre. It is over 20 million people, meaning that the city is a large real estate market.
Source: BusinessDay
