separating the facts from fiction.
The bad experiences from friends and relatives on real estate sometimes might kill our interest to invest but not all is lost.
Here are 4 real estate knows and knows not.
Perception - Real Estate is a high-risk investment
Fact: Any investment be it real estate, shares, mutual funds, gold etc. has its own set of risks and rewards. As an investor, before making any investment decision on real estate, you should be fully aware of all the risks to guide you through a wise decision-making process. The advantage in real estate investment, is that your realtor is there to guide you through every step and risk you might accrue. As a matter of fact, real estate is an investment that has the capacity of multiplying your profits. A number of factors contribute towards it like the location, property type, government policies, market condition etc. An expert advice is all you need to make this calculative risk.
Perception – Only metros are the best places to invest in real estate.
Fact: Not all lakes survive from one river source. In Real Estate you should target areas where there is a continuous scope of development. A smart investor always analyses the market trends, scope and pace of market development and identifies the areas that will be the next big thing. Most metros and tier 1 cities have reached a saturation level and there is very little scope for the market drives to find a place an already populated developed areas. In Kenya, a lot of tier 2 cities are emerging as the future real estate markets. The fact is that when a place reaches its peak of development, the new unexplored landmarks become a target to most investors. The emerging localities have an affordable investment bracket at initial time of development, and automatically picks up steadily when development completes.
Perception – Most developers are losing focus on the middle-income group sector and only concentrates on high-end residential projects because it makes better business sense.
Fact: The high end residential projects are really lucrative with high demands with enormous profits, but with the focus of the Kenyan government towards “Housing for All” and “Affordable Housing”; the developers have made a shift to pick up this opportunity. In fact, the construction of mid-income housing projects fetches the investor more demands in terms of units and thus more profits.
Perception – Real Estate market is bad, we must keep away
Fact: Just like any other business, real estate has its high and low moments, as an investor you might be investing when the market is at its low but as a risk taker you foresee a better market ahead that might throw your profits at the top.
When the market is slow, the buyers might be offered convenient payment plan and policies. For this you have to find a developer with a good past record and a credible name in the market, this can be achieved if you get a mentor.
Even though investing in Real Estate has not worked out for some people it does no mean that it's not the right investment for you. All you need to do is research and find an experienced expert to guide you through the investment process to make the right decision.
Saif Properties has emerged as one of the top and trusted real estate property developer in the country with the right people to help you make the correct decision and facts to build your dream home.
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