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REASONS WHY YOU SHOULD INVEST IN REAL ESTATE

Many Real Estate Brokers just delved into the business without fully grasping the concept of investing in Real Estate. We can simply say that Real Estate is an Investment Vehicle much like Stocks, Bonds, IRAs (Individual Retirement Accounts), and other core Investments.

Real Estate investments offer a variety of facets that cause pension funds, Equity funds, and Persons of high net worth to use Real Estate to diversify their portfolios. There are many areas and specialties within Real Estate such as retail office, industrial, multi-family, storage e.t.c, and each area offers value as an investment. At their core investments simply use the money to make money, and Real Estate Investments do this very well.

Why Real Estate?: Real Estate Investments had long been favored because, unlike many other Investment assets, they are more than a simple piece of paper. One can touch and see these assets, as It has a physical location and a larger part of it will always exist (the lands). Real Estate goes all the way back to the beginning of time as being a highly valued asset. Real Estate can also pass from generation to generation, so there is a little time value loss as Real Estate will always exist.

The key to investing in Real Estate is the return one gets from the investment. The return is the net dollars/naira that the Real Estate Produces. This return can come from cash flow, but it can also come from appreciation. For example, imagine a piece of vacant land, this piece of vacant land does not produce cash flow returns, but the Land can produce appreciation over time. The cash return on vacant Land comes only from the sale of the Land, but the asset (the land itself) will always have value.


The Benefits of Investing in Real Estate: The benefits of investing in Real Estate are numerous. With well-chosen assets, Investors can enjoy predictable cash flow, excellent returns, tax advantages, and diversification. And it is possible to leverage Real Estate to build wealth.
Thinking About Investing in Real Estate? Here is what you need to know about Real Estate benefits and why Real Estate is considered a good investment

Cash Flow
Cash flow is the net income from a Real Estate investment after mortgage payments and operating expenses have been made. A key benefit of Real Estate investing is its ability to generate cash flow. In many cases, cash flow only strengthens over time as you pay down your mortgage and build up your equity

Tax Breaks and Deductions
Real Estate investors can take advantage of numerous tax breaks and deductions that can save money at tax time. In general, you can deduct the reasonable costs of owning, operating, and managing a property. And since the cost of buying and improving an investment property can be depreciated over its useful life you benefit from decades of deductions that help lower your taxed income.

Appreciation
Real Estate investors make money through rental income, any profits generated by property-dependent business activity, and appreciation. Real Estate values tend to increase over time, and with a good investment, you can turn a profit when it is time to sell. Rents also tend to rise over time, which can lead to higher cash flow.

Building Equity and Wealth
As you pay down a property mortgage, you build equity, an asset that is part of your net worth. And as you build equity, you have the leverage to buy more properties and increase cash flow and wealth even more.

Portfolio Diversification
Another benefit of investing in Real Estate is its diversification potential. Real Estate has a low and in some cases a negative correlation with other major asset classes. This means the addition of Real Estate to a portfolio of diversified assets can lower portfolio volatility and provide a higher return per unit of risk. It is also important to note that diversifying your Investment Portfolio is essential. If you put all your eggs in one basket you could suffer a total loss in the blink of an eye. But when you invest some funds in the stock market, other funds in bonds or ETFs, and some in Real Estate, you will increase your chances of higher earnings and fewer losses.

Real Estate Leverage
Leverage is the use of various financial instruments or borrowed capital (e.g., debt) to increase an investment's potential return. A 20% down payment on a mortgage, for example, gets you 100% of the house you want to buy which is leverage. Because Real Estate is a tangible asset and one that can serve as collateral, financing is readily available.

Inflation Hedge
The inflation hedging capability of Real Estate stems from the positive relationship between GDP growth and the demand for Real Estate. As economies expand, the demand for Real Estate drives rents higher. This, in turn, translates into higher capital values. Therefore, Real Estate tends to maintain the buying power of capital by passing some of the inflationary pressure on to tenants and by incorporating some of the inflationary pressure in the form of capital appreciation.

There are several ways that owning Real Estate can protect against inflation. First, property values may rise higher than the rate of inflation, leading to capital gains. Second, rents on investment properties can increase to keep up with inflation. Finally, properties financed with a fixed-rate loan will see the relative amount of the monthly mortgage payments fall over time, for instance, ₦10,000 a month as a fixed payment will become less burdensome as inflation erodes the purchasing power of that ₦10,000.

If you want to invest in Real Estate, but you are not ready to make the jump into owning and managing properties, you may want to consider a Real Estate Investment Trust (REIT). You can buy and sell publicly-traded REITs on major stock exchanges. Many trades are under high volume, meaning you can get into and out of a position quickly. REITs must pay out 90% of their income to investors, so they typically offer higher dividends than many stocks.



Also, you can Indirectly invest in Real Estate which is an investment that involves no direct ownership of any property or properties. Instead, you invest in a pool along with others, whereby a management company owns and operates properties, or owns a portfolio of mortgages.
Despite all the benefits of investing in Real Estate, there are also drawbacks. One of the main ones is the lack of liquidity or the relative difficulty in converting an asset into cash and cash into an asset. Unlike a stock or bond transaction, which can be completed in seconds, a Real Estate transaction can take months to close. Even with the help of a broker, it can take a few weeks of work just to find the right counterparty, and therefore it requires patience.

Still, Real Estate is a distinct asset class that is simple to understand and can enhance the risk-and-return profile of an investor's portfolio. On its own, Real Estate offers cash flow, tax breaks, equity building, competitive risk-adjusted returns, and a hedge against inflation. Real Estate can also enhance a portfolio by lowering volatility through diversification, whether you invest in physical properties or REITs.
It is funny that some people avoid Real Estate Investment because they think they are scary or need a lot of money to invest, but neither of such thinking is accurate, and to reassure you these are some great reasons why Real Estate is a good investment and why You Should Consider Investing in it.

So take advantage of the many Real Estate Investment plans and make yourself some really good cash flow by consulting us today and we will help you in choosing the right Real Estate Investment.


For further enquires or consultations send us an email at adenijiadele.valuers@gmail.com or call us on 08024553943 or 07032416310 and we promise to offer you the best Consultation Service.

THE ENTIRE MANAGEMENT OF ADENIJI ADELE AND ASSOCIATES FELICITATE WITH YOU ON YOUR ELECTION AS THE PRESIDENT OF NIGERIAN INSTITUTION OF estate surveyors and valuers (NIESV)

THE ENTIRE MANAGEMENT OF ADENIJI ADELE AND ASSOCIATES FELICITATE WITH YOU ON YOUR ELECTION AS THE PRESIDENT OF NIGERIAN INSTITUTION OF estate surveyors and valuers (NIESV)

The world is getting smaller.

With more land being used for agriculture, industry, housing, etc.

It is wise to invest in a landed property today.



OUR SERVICES

Property Valuation

Property Letting

Property Sales

Real Estate Consulting

Property Management. etc...



ADENIJI ADELE & ASSOCIATES

62/64 CAMPBELL STREET, LAGOS ISLAND, LAGOS.

Phone Numbers:08115397530,

Having given a brief meaning of Property Valuation, now let's look at its importance.

1. Property Valuation helps to Ascertain the Actual Worth of a Property: Valuation will help the buyer of a property know whether the price mentioned by a seller/owner of a property is appropriate, likewise also the seller would be able to know if his/her property is actually worth the price he/she is offering it in the market.

2. Mortgage or Loan Process: If a buyer is planning to take a loan from the bank for any purpose, the bank will first conduct what is called Property Valuation on the property that the client wants to use as collateral for the loan and then set a seal on the loan amount. Different mortgage terms and conditions of the loan depend on the final property valuation report.

3. Insurance Purposes: DUE to unforeseen hazards or accidents one would want to ensure their property and for such process, Property Valuation comes in. The accurate property valuation ensures that the coverage cost is reasonable and the buyer does not run the risk of low insurance coverage.

4. In the Case of Rental Purpose: You will find out that many property buyers in the Real Estate market plan to buy a house/flat or even a shop for rental purposes and we definitely know that the motive behind such investment is to create a continuous income generating option. Now valuation would aid the buyer to compute the market value of the property and this will be the basis of anticipating a monthly rent of 6% to 10% of the total calculated value. Plus, it will also help to throw light on the prevalent rental rate in the locality and assess the viability of the property with regard to its rental potential.


https://www.youtube.com/watch?v=w1KMkkbq9Fo

ADENIJI ADELE & ASSOCIATES
62/64 CAMPBELL STREET, LAGOS ISLAND, LAGOS.
Phone Numbers:08115397530, 08024553943

TO LET

DESCRIPTION:3 Bedroom luxury flat with 2 room BQ to let

LOCATION: 9A, Maroko Close (Tony Eromosele close), Ikoyi, Lagos.


PRICE: N12MILLION

Service Charge: N2MILLION

Diesel Deposit: ₦1.5MILLION

FOR RENT ( strictly Residential )

DESCRIPTION: 1unit of 3bedroom flat and 1unit of 2bedroom flat

LOCATION: Opposite Delakes Mall Lekki Phase 1.

PRICE: 3 Bedroom 4MILLION
2 Bedroom 3MILLION

While owning a property can be quite an investment, it’s equally a great source of additional income when it is a Rental Property. However, it also comes with added responsibilities of property management, including upkeep, repairs, and marketing. If you are asking yourself “do I need a property manager?” then you should consider the benefits when using a Property Management Company and then make you conclusive answer to your question after you might have gone through this article.

It’s clearly so important to to use a Property Management Company such as a registered Real Estate Firm to manage your property and this importance can not be over emphasized. Millions of individuals own properties that are improperly managed which sometimes gets them frustrated that they sell off the property, sometimes they can not manage it themselves because they have no time to even manage the property not to talk of when they have more than just one property.

Before we look at the benefits I believe it would be fitting to actually know who a Property Manager is:
A Property Manager is one hired to handle and oversee the day to day operations of a Real Estate property which includes responsibilities like collecting rents from tenants, setting rent prices to fit the market, seeking out and approving new tenants, coordinating leases, and following up on maintenance requests e.t.c

Property owners who typically understand the essence of hiring a Property Manager do so in order to achieve their goal of building a steady investment income while reducing the burden of daily property operations on themselves.

Who can be a Property Manager: Before anyone can be regarded as a Property Manager to any Real Estate property he/she must be certified and well trained professional knowledgeable and experienced in the Real Estate Industry and must be fully licensed to handle all the relevant properties.

Over the years, there have been a lot of issues that property owners face with regards to handling their properties as it is not an easy task to handle daily, monthly, and yearly maintenance of these properties while also at the same time trying to keep up with the Landlord-Tenant relationship. And thus the reason why property owners should consider getting a Real Estate Company to manage their property/properties.
So having said all these let us now look at the benefits one would get from using a Property Management Company.

1. Screen Out Problem Tenants

One of the biggest benefits of property management is that the property manager will handle tenant screening. Experienced property managers see hundreds or thousands of applications, so their trained eyes are more likely to notice potential red flags when reviewing an applicant’s paperwork. They are quickly able to spot good tenant qualities, such as paying rent on time, taking care of the property, and more. Letting them manage the tenant screening process can improve your chances of landing a reliable renter.

2. Act as the point of contact for tenant concerns

If something breaks at your property, it’s not always convenient or possible to drive over to the unit to inspect it yourself especially if it’s in another town or state. A property manager can address problems at all hours of the day and arrange for a service provider to repair or replace the item. Or, if you have a tenant who always seems to have a complaint be it the noisy neighbors or the dog who relieves itself on the front lawn you can breathe easy knowing that the property manager is the point of contact for those types of calls.

3. Market your rental

Property managers are skilled at rental marketing, including writing rental ads, taking high-quality photos, and hosting open houses. They also have local real estate knowledge and will be able to help you set a competitive rent price. Hiring a property manager with marketing experience can help fill your property sooner and reduce the time it sits vacant. If you plan to market your property yourself, Adeniji Adele and Associates offers a hassle-free way to list your rental on multiple traffic highway websites. It would interest you to know that 84% of renters use online resources when shopping or searching for a home so it’s a good idea to list your rental on the right sites to attract those potential tenants.

4. Decrease tenant turnover

Good property management companies know how to keep their renters happy. They are responsive and available, and they take care of problems when they arise. Happy renters are also less likely to look for another place to live and more willing to accept reasonable rent increases. For tenants who choose to stay in their current lease, 50% of them think their home is a good value for the price and 40% say they love the place they rent.

5. Ensure rent is paid on time

Because property management companies deduct their fees from the monthly rent, they are motivated to keep those payments flowing in. Consistent rent collection is key to receiving rent payments on time, and using a Property Management Company will help enforce lease policies if payments aren’t received. If tenants are consistently failing to pay their rent on time or at all, the Property Manager will know how to deal with the situation, including issuing an eviction notice if necessary. Payment collection can be a common issue the typical renter spends 29% of their income on rent, and a significant share of rental households are one large expense away from being unable to pay.

6. Avoid potential legal issues

Property Managers understand landlord-tenant laws and fair housing laws, which can help you avoid potential lawsuits and save time, money, and energy in the long run. They will also typically take care of any lawyer fees associated with evictions or property damage issues. If you are not comfortable handling things like evictions, signing and terminating leases, and handling rent and security deposits, you may need Property Management Company expertise.

7. Save you money on maintenance and repair costs

Using a Property Management Company may also come with discounts for maintenance services if the Property Managers work with a regular service provider or employ an in-house maintenance staff. They can perform regular inspections and find issues before they turn into bigger problems which will reduce the number of emergency repair bills.

8. Reduce your rental headaches

If someone else is handling the daily management of your rental property and tenants, you will have fewer complications and commitments to worry about. If more time and less stress are key to your quality of life, using a Property Management Company can be a great asset.
These are the benefits of Property Management and investing in a rental property can contribute to your monthly cash flow and build long-term wealth but day-to-day Property Management is not for everyone. If you just want an additional income from rent and don’t want to be responsible for the details of your rental investment, consider all the Property Management benefits that you will receive for a percentage of your rental income.

 We at Adeniji Adele and Associates are known to be experienced with managing properties for individuals as well as cooperative organizations and we would like to help you to manage yours and relieve you of all the rigors involved with managing your property/properties yourself. So call us today on our official numbers 08087086993 or 08091290611 Or send us an email at adenijiadele.valuers@gmail.com and we will ensure that you rest easy and achieve your goal on Property Rental Investment.