Myths about Africa’s Real Estate (Prt1)
A myth can be defined as “any invented story, idea, or concept” or a widely held but false belief or idea. The real estate sector also has its fair share of myths which has transcended and evolved with time. This article will present some of these myths and at the same time debunk them. Real estate myths are all too common; however, they can be “debunked” with a proper explanation.
REAL ESTATE MYTHS
In no particular order, let’s delve into these myths and see if they hold true or not.
1. Real Estate Investment is for the Wealthy alone: This myth perhaps was born from a misled believe that when the word real estate is used, it refers to skyscrapers, mansions, Highrise buildings etcetera. Real estate is a general term that encompasses land and the buildings on it as well as the natural resources of the land including uncultivated flora (vegetation) and fauna (wildlife), farmed crops and livestock, water and minerals.
The media in some ways has contributed to the misconception, in that it often refers to the “real estate market” from the perspective of residential living. For the sake of clarification, let me state here that real estate can be grouped into three broad categories based on its use: residential, commercial and industrial. Examples of residential real estate include undeveloped land, houses, condominiums, and townhomes; examples of commercial real estate are office buildings, warehouses, and retail store buildings; and examples of industrial real estate are factories, mines, and farms.
Anyone with an interest in Real estate can invest irrespective of the financial status of the individual. It is not reserved for the upper-class or middle-class citizens alone. On the basis of your preference, various investment port-folios and payment plans are available to accommodate everyone in the real estate sector. However it is important to get professional investment guides and tips for making profitable real estate investment. Check out 3invest Real Estate Investor Network for flexible investment options. Or click here to sign up for free
2. Real Estate Property Investment will make you Wealthy: As emotionally appealing as that sounds, there are other factors that must be properly and consciously considered and implemented for this statement to proof true. Without doubt Real estate investment holds unparalleled potentials to yield high level returns on investments that can translate into personal fortune, but the timing, type and the choice of investments will be an influential factor in realizing wealth.
Another key factor that is very important in any investment venture is patience. The time factor is undoubtedly a major key towards achieving personal fortunes in the real estate sector either in form of financial returns, or in acquiring more assets.
3. Flipping is the best way to make money: To help those not familiar with the concept of flipping, it is a term used to describe the act of buying an investment property and quickly selling it on again at a higher price for a quick profit. This act was definitely a widespread activity in Africa during the last property boom as it was relatively easy to buy a home, watch the market rise in value each month and then sell it on normally within 12 months or so for a higher price.
House flippers can make a lot of money, but they can also lose a lot of money as well. It is a risky business as well. The typical investor will normally hold on to a property for at least five years before considering selling, so you can reasonably assume that at present, flipping is not really the best way to make money on property.
We would be considering and debunking other real estate myths in subsequent articles, and narrow them down to certain parts of Africa. So follow us on www.3invest.org for the continuing article.
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