By Yinka Kolawole, with agency report
Real estate investment is considered to be one of the safest, due to the appreciating values of property around the world. Interestingly, when compared to other forms of investments, the real estate depreciation rate is very low. This is ideal for prospective investors to generate profit through rents or leases of varying lengths. As an attractive investment opportunity, not everyone can invest in real estate. However, if you want to venture into property, there are simple ways to approach your investment.
If you do not have large purchasing power, you can start with buying property in the suburbs and work your way up to purchasing in the city. Buy land for low rates in suburbs and wait until the demand rises and the price appreciates before you sell. This involves a lot of patience. Also you can buy a property and put it up for rent or lease, thus obtaining a fixed monthly income. Ask a professional, who has a keen eye for satellite towns and areas with development potential, for help. This expertise will go a long way in ensuring the amount of profit you can make from re-selling land to new owners.
Join a cooperative
Cooperatives are a good way of getting affordable land, as members contribute small amounts to buy large portions of land in semi-developed locations. You can resell your plot of land once it has been allocated or gradually develop it, before it is put on the market for sale or lease. Buying as a collective is also a good idea as the purchased plots can be developed at a similar pace.
Build a small house
Sometimes, it is more viable to sell a property than just a piece of land, as the margins are higher. If you have a plot of land, erect a structure on it before putting it on the market. It could be just the foundation of a house, but this increases your bargaining power and property value when transferring ownership.
Cooperate with a trusted property developer
Property developers have an eye for developing properties. Usually, the developer holds the property for an agreed period of time to recoup his investment before ownership reverts to the owner of the property. If you have a landed property, it can be put on the market to earn some extra cash.