Land appreciates as time passes, meaning its selling price after some time will be greater than the buying price. Additional improvements or resources available on or beneath the ground add value to the land, increasing its price. Land surface improvement examples are buildings and planted trees, while a borehole is an underground improvement. This is the basis of real estate, acquiring land early at a good price, adding value to it, then later selling it at a higher amount or letting it to people while making profits.
Like any other business venture, it is advisable to conduct a little research before investing your hard-earned cash. Asking those who are already on it will give you an idea of how the markets are. Of course, some may try to scare you with false information to eliminate competition, but some will be helpful. Receive advice from multiple reliable sources, but don’t let them decide for you, make the decision alone.
Understanding that real estate is a land-related venture, it is wise to keep up with current news, especially related to development matters. Find out where a new college is being built, inquire about where the government is opening a bus station. When a new road is built by the government, it attracts businesses and the areas it touches.
Travelers are the target consumers of the goods and services offered along the new road. Business examples a new highway would attract are petrol stations, motels with accommodation services, and fast-food restaurants. There will be demand for land in areas where the road will pass to set up these businesses. The road is just an example, know about where development is taking place. With this knowledge, you will easily find out where to buy land to begin your exciting real estate investment journey.
Real estate is definitely a viable option for accumulating wealth, considering that shelter is basically a commodity. Availability of already built houses is a quick way of finding a home. This saves you from the hustles of finding land, looking for an architect, sorting government requirements, buying materials, and paying builders until the house is complete. Generally, buying an already built home is expensive because of all the land improvements leading to value addition. See, all these profits go into the investor’s pocket, leading to the accumulation of the investor’s wealth.
Apart from the residential part, the real estate venture includes selling plots from subdivisions of large tracts of land. With enough capital, profits can be generated by selling a huge piece as smaller parcels than a whole. Hiring the services of professional planners and land surveyors will greatly assist you in determining how many plots can be created from a particular size of land. Approvals of local authorities are required at this stage to verify if the proposed subdivision drawings are in line with government policies. Some policies may include the width of the least access road or acreage of the least plot. Once the drawings are approved, the plots can be advertised through the media, ready for sale. Good returns will help accumulate your wealth since land is an appreciating resource, meaning even if you don’t find customers today, tomorrow they will buy at a higher price!
Having discussed the residential and plot selling part of real estate, let us explore the commercial side of real estate. Here, the purpose is to generate profit not from the sale of single-family homes but generate revenue from more than one unit. Tall buildings with office spaces, shops, eateries, and large spaces suitable for supermarkets are part of this category. People who invest by letting space generate huge returns since the demand for offices and business spaces grow with growing education and a wide pool of loans for business start-ups!
Since land is a requirement for most business ventures, the real estate extends its tentacles to agriculture by providing land for cultivation. Letting land to farmers, for certain periods of time, at certain amounts contributes to more wealth generation. Profits from real estate with the right research and information can lead to wealth creation. In letting hostels close to a government university, the landlord is always assured that rooms will always be occupied as long as the university is open. As the population grows, demand for land increases, and the price for it rises too. Do not wait until land is so expensive, buy today and start your wealth accumulation journey.