Is Real Estate a Good Investment Choice?

Yesterday, someone said, “real estate is one of the poorest investment choice, economically and financially a poor decision…”.

Another person reacted to the same post, talking about the risk involved and further implied that just investing in real estate without exploring other creative business areas is the reason Benin is backwards when compared to other states.

Although, this subject can’t be sufficiently explained¬† through a post, but we’ll attempt to be sincere with you- by sharing the disadvantages and some advantages of real estate investing.

First, there is a business angle to real estate and owning a home which serves as shelter is not one of them. It’s like having a car for mobility only and another person having a car for the purpose of Uber (transportation). One is strictly for comfortable mobility and comfort, the other does these with a major focus on making more money. To the ordinary car owner, a car is a liability while to the Uber driving car owner, it is an asset. The same applies to buildings. If it is entirely for shelter, it becomes what our MD likes to call “quasi-liability with asset potential” but to the business-minded property owner, it is business because of buying and selling/demand and supply. One is a property owner, the other is a property investor.

So, with respect to the disadvantages of real estate investing, hereunder are some of our experiences as at today.

1. It is capital intensive but Fortreal Rei Ltd. has measures that solve that problem.

2. It is risky but the truth is, all human endeavors have some level of risk.

3. It can become a subject matter of dispute, which can be avoided through good documentation. It’s also not certain that you will lose the case once it goes to court. Also, not all your lands in different locations can become subject of dispute except village people are specially on the person’s case.

4. It can be affected by fire or other risks that lawyers refer to as act of God, e.g flood, natural disaster etc.

The foregoing summarize the disadvantages.

For the advantages/importance, our MD, in his real estate handbook, has 19 of them but we will state out 10 for you and briefly exemplify the last one.

1. Real estate investments gives you financial base and backbone for other businesses and/or investments.

2. It helps you diversify your investment portfolio.

3. It serves as a credible economic tool for managing inflation.

4. It creates cash flow.

5. It can serve as a financial tree to secure a particular idea, project or business.

6. It is a great leverage in the business world. It can serve as collateral.

7. It is the best retirement plan ever.

8. It serves as a good means of legacy, and a powerful tool for inheritance.

9. It is a sustainable, safe, secure and less stressful investment.

10. It appreciates even when you do nothing on it. It appreciates while you are sleeping. For example, A land was bought in 2016 (50 by 100). As at today, it is going for 5.5m non-negotiable. A plot of 100ft by 100ft was bought for 725k in August 2020. In December 2020, it is now put at 2.5m. The owner refused an offer of 1.5m already. Another plot of land (in Lagos) was bought for 12m. After 17 years, it was sold for 200m. All these plots, the owners did nothing on them. Nothing. They were going about their normal businesses while real estate was doing its thing; appreciation. So, literally, they were making money doing nothing but simply investing in land.

There are risks (disadvantages but there are real time advantages).

Which do you prefer to focus on? The advantages or the disadvantages?

Investing in real estate is not something you must do but it’s a side ‘hustle’ that can make you rich. Whether side or major, it is what it is.

At Fortreal Rei Ltd., we are concerned about your journey to financial independence through real estate investments and to further ensure that you do so with minimal risk through efficient documentations and other security measures.

Send a message now! Let’s discuss your financial independence plan and partner with you to greatness with our credible investment opportunities ( lands for sale)

Fortreal Rei Ltd… making Millionaire Investors”

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