Real Estate Developments Suitable For You
I know a lot of you must have heard many good things about real estate and how it is a good place to invest. There is even a quote by Mark twain that says “Buy Land, They are not making it anymore”. Funny right? But its the truth, they are not making more of it and when you invest in the right land or property you are bound to succeed and reap from your real estate investment. I think it is just right to educate our followers on a few things in this article. I will touch base on a couple of things, Not in any particular order, but at the end of this article, you should understand and get a fair idea of the following;
- How to become a real estate agent
- What is a real estate business
- What is a real estate company
- The various types of real estate
- The benefits of real estate investment
- The roles of real estate agents in the real estate business
What Is Real Estate?
Real estate is real property that consists of land and improvements, which include buildings, fixtures, roads, structures, and utility systems. That is real estate broken down to the simplest form. There are various forms of real estate, and these are mainly;
Residential Real estate mainly consists of individual housing, families, or groups of people. This is the most common type of estate in Ghana and is the asset class that most people are familiar with. Within residential, there are single-family homes, apartments, condominiums, townhouses, duplexes, and vacation homes.
Commercial real estate includes shopping centers and malls, medical and educational buildings, hotels, and offices. These are all used by businesses to carry out their operations and gain income.
Industrial real estate includes warehouses and manufacturing buildings research and development, construction, transportation, and logistics used by businesses.
Land refers to vacant land, working farms, and early developments. This is the baseline for all types of real property.
These are the various real estate forms you can look to invest in should you chose to venture into the field. All the same, I will share a few benefits you stand to gain should you choose to invest in the real estate sector.
- Long term Investment
Purchasing a piece of land or property is a long term investment and financial security. Property always has its value going up but that does not guarantee the value increasing indefinitely so that is why you need to do your research on the area you look to make a purchase and how promising it looks. That way you are assured of a solid investment that can be sold for a higher price and if it is an apartment you can rent the space out and get a different source of income.
- Steady Source of Income
A lot of people look to invest in real estate to earn extra cash flow they can get from rental income. Depending on the location, one could be earning significant income to cover various expenses. Urban cities or towns with colleges and universities do tend to reap higher income due to the high demand in the localities.
- Retirement Cashflow
When done right real estate can be a source of income for you and your family even after retirement. This means it can help supplement your retirement years with income from your rental properties.
These are just a few benefits that come with investing in real estate. You can also choose to make it a business if you want and purchase multiple lands and properties to lease out or develop. Real estate business is a business entity that has to do with the buying, selling, management or investment of real estate properties. If your assets are handled well, this can be a very profitable venture for you. The most common way you can gain value from your investment in the real estate business is through appreciation. Appreciation is the increase in value of an asset over time. You can gain a huge profit from your investment in land holdings and several establishments by selling them when they appreciate in price or lease them out when the value of the community or town increases.
If you will be looking to do this long-term you can choose to setup a real estate company, You need to know this is no small feat. There needs to be a lot of research done or you are setting yourself up to fail. Just like any other business venture out there, the real estate business is alo competitive so you need to do a lot of market research and this has to do with the locations, their value, your competitors your business plan and what is in demand. Once you have done your research you can also choose to go into business with another real estate company that has already built their profile and that way it will be easier to sell of or rent out apartment buildings. A real estate company is simply one that buys, rents and sells out property.
If you think you do not have the finances that can help you start a business or invest as much you can choose to become a real estate agent. A real is basically a licensed professional who arranges real estate transactons, by connecting buyers and sellers together as their representative during negotiations.
How to be A Real Estate Agent
To be a real estate agent, one will have to be affiliated or work with a brokerage firm. These agents usually work on commission base and are paid a percentage once the property is sold. As an agent you can either specialize as a commercial or residential real estate agent, all the same you will be doing basically the same thing but selling different property types.
Depending on who you work for, either the buyer or seller you will be playing the role of advisor if your client is the seller and you will be listing and marketing said property. You advise your client on how to price the property, prep it for sale and if you think any improvements need to be made to boost the value you make them aware. These agents market properties via listing websites and services, advertisement and also personal networking.
Should you be working for the buyer, your main role will be to look for available properties within the client’s budget and what they are looking to obtain with said budget. You will be comparing listed properties to help prospective buyers come up with a fair enough bid for your client.
These are the roles of a real estate agent if you chose to go down that path. If you will like to learn more about being a successful real estate agent this blog might interest you.