RISING RENTS!
NOW IS THE BEST TIME TO BUY THAT INVESTMENT PROPERTY.
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REAL ESTATE IS AN EXCELLENT INFLATION HEDGE
Trying to hold onto cash during a period of rising inflation is a losing proposition. The value of money continues to deteriorate. And, like home prices, inflation does not appear to be abating anytime soon. Real estate has increased in value as the value of the dollar has decreased. Real estate, whether residential or commercial, is a tangible asset that appeals to investors in inflationary and uncertain times. Real estate, unlike stocks, bonds, paper gold and silver, and electronic cryptos, is an asset that provides recurrent revenue streams and increases in asset value over time. Real estate is often referred to be a "hard asset" for these reasons
WHAT IS THE DEFINITION OF A HARD ASSET?
A hard asset is a resource or tangible asset with intrinsic, underlying worth that is typically retained for a lengthy period of time as a long-term investment. Hard assets, such as cash, stocks, and bonds, are typically used as a hedge against inflation and have values that vary in the opposite direction of soft assets like cash, stocks, and bonds. Commodities, paintings and memorabilia, energy resources, precious metals, and real estate are examples of hard assets.
HARD ASSET INVESTMENT CHARACTERISTICS
Investors are drawn to it because it is physical and tangible, traits that most other investments lack.
A typical portfolio of stocks, bonds, and cash is diversified with hard assets.
Hard assets have a high correlation with inflation, making them a good inflation hedge.
Low correlation with traditional equities and bonds that are more volatile, offering value to a diversified portfolio.
Because the values of assets with fundamental value do not fluctuate based on the nightly news, hard asset prices do not need to be tracked daily or even hourly.
Because hard assets are illiquid and cannot be moved fast, their prices remain relatively steady compared to some stocks, which may lose 20% or more of their value in a single year.
WHY IS REAL ESTATE A TOUGH ASSET?
Developed real estate is made up of two different types of hard assets:
The property is built on land or a lot.
The structure or building itself
These two characteristics that distinguish real estate as a hard asset are also linked to two of the most important advantages of real estate investing: recurring income and long-term asset value appreciation. The complete building or space that is leased to tenants generates monthly rental income and cash flow, while both the land and the building can rise in value over time with investment real estate. Investment real estate is likewise considered a hard asset by the IRS. Because of the IRS, investors can depreciate a commercial building over a 39-year period.
THE AMOUNT OF LAND AVAILABLE IS LIMITED.
There are numerous well-known comments regarding land from persons who become extremely wealthy through real estate investment. "The major fortunes in America have been built in land," according to John D. Rockefeller, while Mark Twain advised readers to "Buy land, they're not making it anymore."
The underlying economic notion of scarcity, which relates to the finite quantity of land and the endless wants and needs for land, benefits land investors.
WHY IS IT THAT FLIPPING OF HOUSES IS SO POPULAR RIGHT NOW?
Despite the fact that there is a lot more competition to buy right now, some people are still getting good bargains. The idea is to do your math as normal, arrange for a cash purchase if at all possible, and purchase a fixer-upper to get a lower price. The timing is ideal, as foreclosures resumed as soon as the government lifted the moratorium on foreclosures in August of last year.
With the current state of the market, you may be able to sell your property without having to spend any money on repairs. In 2021, house prices increased by 16.9%. While no one can anticipate what will happen in 2022, many analysts believe there will be significant buyer demand and likely additional price hikes. If you're a flipper, if you want to get good money, go ahead and improve the house, and then sell it to someone who wants to be a homeowner, or consider holding onto it and renting it out.
WHY IS IT PROFITABLE TO BE A LANDLORD RIGHT NOW?
In today's market, it's more difficult to find a buy-and-hold investment, just as it is with flipping. However, if you can acquire one, go for it. Of course, do your homework first and only invest in a location where people will want to rent. There may be a buying frenzy out there, but investors should keep their cool and only invest if the facts make sense.
With that stated, housing is in high demand right now. Not only is the typical rental market robust across the country (note that this varies by location), but it's also becoming stronger as a result of first-time homebuyers who have been priced out of the market or who are constantly losing out to the competition.
Buying a product that people want is at the heart of real estate investing. And people are in desperate need of houses right now. We have a chance to combat the tendency of institutional investors swallowing up all the available housing stock if mom-and-pop investors can keep real estate investing local. By not giving up, mom-and-pop investors can help ensure that buying real estate remains a viable option
Finding your Property is our mission. And we are delighted to be a part of your real estate journey.
I’m Iluyinka Adeyemi, I’m your very Caring Realtor and with me by your side, all your Real Estate expectations will be met and your peace of mind is guaranteed.
I am not “a quack” and neither did I just bump into real estate, apparently it’s been destined before I even realized it.
I studied Estate Management at the "greatest" university in Nigeria, Obafemi Awolowo University, Ile Ife, and I also have a master’s degree in business administration from another great university, Lagos State University (LASU). I had a very robust 16 years of work experience before becoming a realtor where I gained so much expertise in sales, marketing, business management, etc. I went back to my first love which is real estate in the year 2018 because I want to be a part of the solution providers to the housing deficiencies in Nigeria and also to be a safe hand with integrity to all those who have lost confidence in property investment in Nigeria.
Can't wait to work with You!
To schedule an inspection or for advisory services, kindly call 08127078387 or 08175571113
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