How to Determine Value Appreciation of a Property:
A real estate investor has to calculate a lot of things before putting down his money for a particular property. He does not just buy a property simply because it is cheap and he feels that he can easily afford to pay the price placed on the property. He knows that he is buying for business and not for pleasure and business is all about maximizing profits. Price does not always count while considering investments in real estates sector, rather the main focus is the value appreciation of that particular property. Real estate investment is a long term investment, this however does not mean that you will go and tie down your money somewhere believing that one day it will appreciate, some properties actually take ages before appreciating in value. You have to remember that if you really want to play big in the real estate sector, definitely, you will have to borrow money from the banks, and the banks are also into business, so they begin to charge you interest the very day the loan is granted to you, so if you tie down your money in one property that takes a very long term before appreciating in value, the interest alone can wipe out all your profits, which I know that you don't want. So determining the value appreciation of a property before investing is very critical to the growth of your income in the real estate sector.
So, what are the things that play major roles in determining the value appreciation of a property? What are the things to look out for, as an investor, in order to be sure that you will recover your money within a short period of time and equally make a reasonable profit from your invested capital? What are the signs to look out for to know that an area is about to experience an explosion and therefore as a seasoned investor, you have to take position before the explosion starts and the price of the properties shoots up?
The first thing you need to look out for is EVENTS. This demands fore-sight, information that others don't have, and the ability to see beyond what others are seeing about an upcoming event in a particular environment.For example, the federal government of Nigeria hosted the first world festival of arts and culture ( FESTAC 77) in the year 1977 in a remote part of Lagos which was then the capital of the country. This event alone opened up a window of opportunities for discerning investors in real estate. The government created new road networks in that area, built hotels, electricity and government presence was seen in an area that was neglected before, thereby forcing the price of lands and property to jerk up immediately. It is over thirty years now, but that environment is still relevant as of today, and a real estate investor that invested there at that time would have recovered his money for a long time since then.
So if I may ask you the reader of this particular post now, what is the information that you have now about an event that is about to take place in your environment or an area that you know very well, this might still be rumors now, due your search and find out if it is real, that singular event may be the golden key that you need to unlock your door of wealth and enter into your own financial freedom
I want to stop here today, keep a date with me here tomorrow because we still have other factors to look at which are things that determines the value appreciation of a property. See you tomorrow.