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Routes to profitable property investment in 2018

by CHUKA UROKO

January 9, 2018 | 5:01 pm
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Though the real estate and construction sector in 2017 was negatively impacted by the 13-month economic recession which translated to a fall in GDP growth in that sector, experts have predicted positive outlook that will lead to growth in the sector in 2018, making investment in the sector compelling.

Planning to invest in this sector in 2018 is therefore a good way to step out in a new year. Essentially, real estate investment is a life-changing step for many people. It has the potential to change lives and exponentially increase peoople’s wealth.

Real estate is one of the safest forms of investment. It has performed in a particular fashion in the last 100 years. The banking industry knows this pattern and that is why operators lend substantially to assist investors in achieving their investment goals.

But before stepping out to invest this new year, it is advisable to develop a solid strategy for your investments. Experts insist that potential investors should enter the world of property investment well informed.

There are routes to investment and knowing these can really help the investor choose his investment strategy wisely.

One of such routes is the ‘Buy to Let’ which offers stable capital gains. Investors generally want an investment property that has high rental yields to secure a monthly cash flow. This particular route is considered a low-risk strategy that has the potential of greater gains when the property is sold.

This is because off-plan properties and new builds in the residential segment are considered the safest and most popular for first time investors. However, the Buy-to-Let strategy requires excellent knowledge of the local property market.

Another good route to investing is the ‘Buy-to-Sell’ which is also called ‘flipping’. This is a strategy that enables investors to buy a property and sell it off-plan, that is, before the redevelopment is completed.

Flipping can offer large capital growth quickly, since market demand for new homes skyrockets when the redevelopment is about to be delivered. This strategy requires excellent market knowledge, management and knowing when the time is right.

Yet another good route to take is the ‘Joint Ventures’ which are usually on the higher end of the investment layer. Most popular types of joint ventures occur when one part has the land and partners with another party to develop on that land and then share the returns.

A Joint Venture’s success ultimately comes down to what the different parties bring to the table and if they are united by common financial goals.

Before taking any of these routes, investors whether they are experienced property portfolio owners or are just starting out, after they have decided what their investment goals are, should are advised to consult an expert.

Fine & Country West Africa, a leading real estate marketing firm, explains that getting an expert’s opinion will help investors to minimize risk and equip them with valuable information about current trends and opportunities in the property market.

 

CHUKA UROKO

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by CHUKA UROKO

January 9, 2018 | 5:01 pm
  |     |     |   Start Conversation

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