It has often been said that real estate investment doesn’t come with a map, and the road to riches is not a straight one . That being said, there are things you can do to put yourself on the right path and ensure your best chances for success.
Listening to real estate professionals and successful investors is a great way to start. Investing in real estate is often compared to a box of chocolates. There are so many choices that it’s hard to know what to take a bite of first. But unlike candy, choosing the wrong rental property can be a lot harder to swallow. Ownership of land, the basis of all the investment opportunities we see today in real estate. Ownership has moved from being established by strength to being something you can buy, sell, trade, and rent.
In the old times, there has always been a trade-off for tenancy, a fee paid to the owner for the land and its protection. This responsibility was first afforded to tribal leaders, then to kings, and finally to landlords. Now we have the power to own our home, a development that has changed the way people live. Most youths, especially those in their early and mid 20s, having only just completed a university education, are still not sure of what to focus on in life. In developing societies, most people in that age range, after being done with schooling, are unemployed, underemployed, unguided, and/or not guaranteed of what to expect from life. Their counterparts in the developed societies will at that age only have gotten employed, or just started an entrepreneurship venture that is not high earning. Hence, most young individuals end up confused or irresolute on what real estate ventures they can afford, or how to go about it at all. Young individuals might complain that by virtue of being young, they are blessed with the curse of being persistently broke, and hence unable to afford profitable real estate ventures. But this is not completely true. Real estate has been set up by varying companies and organisations to be as affordable as possible, in whatever quantity or quality is desired. So in essence, real estate is generally considered the crème de la crème for a variety of reasons, including consistent cash flow and the compound effect of appreciation.
Also, the necessity to invest in real estate, especially from a young age cannot be overemphasised. It guarantees a fixed and stable source of income. Seeing that most young people are constantly in need of cash, it makes sense that investing in real estate, which provides a steady stream of financial aid, would be the best way to go. Real estate, even though not in heavy bulk, provides a constant assured almost risk-free source of income in the form of rental income. Owning real estate ventures in areas such as highbrow communities, urban setups, and cities tends to offer a bigger advantage in the sense of higher return and income due to the greater demand for rental services in these areas. It is hence evident that real estate, if managed rightly and set up correctly, can provide an extra source of funding, asides from career money, to serve as retirement benefits, especially in the background of sensible saving by the youth.
Real estate has the added advantage of being able to increase in value over time while producing cash flows from mortgage interests and rental income. In all these, the most important bit to keep grounded in mind is that location plays a major role in determining the returns made in real estate. Then there is the factor of stability for the future. Real estate, being relatively risk-free, serves as a cushion for young people in cases of financial emergencies. If in very dire need of money, real estate ventures can be liquidated for immediate cash, can be mortgaged for loans, a segment can be traded off, and so on, depending on the wishes of the owner. In a society where job security is at an all-time low, and youths are usually bottom tier and the most laid off, owners of real estate investments can breathe a sigh of relief in any eventualities and can be calm enough to make other plans without fear of going broke. Real estate also builds experience and can be an advantage in the eyes of employers, when seeking to select job applicants.