Real estate investing is the process of buying property and then renting it out or selling it for a profit. This is done with the goal of generating a steady stream of income. Real estate investing can be a great way to build wealth but there are also some drawbacks to consider.
There are many reasons why people invest in real estate. Some investors want to generate income and others want to create wealth that they can leave behind for their children or grandchildren.
Some of the pros of real estate investing:
– The ability to generate income from rents or sales
– Low risk because you’re not dealing with stocks, bonds, or other securities
– You can make money even when the market is down because you have control over your property’s value
Some of the cons of real estate investing:
One of the main reasons that people shy away from real estate investing is like any other investment, it involves some risk. For example, stocks and other securities are volatile, but they’re also considered lower risk options than real estate because they’re more liquid.
Unlike stocks and bonds, real estate is not as volatile but the risks involved are such as being conned and it lacks liquidity. Dealing with stocks, you might realize a deal is going bad and pull out, for real estate you don’t get the chance to just liquidate your investment as you’ll have to find a ready buyer in the market first.
How to Get Started with Real Estate Investing?
Real estate investing in property can be a great way to build wealth. However, it’s not as easy as just throwing money at the problem.
The first step to take when you want to start real estate invest is to figure out the type of property that you want. There are many different kinds of properties that can be good for investment, such as residential, commercial, and industrial.
Determining the type of property you want first will be a great place to start. Knowing this will allow you to further filter through different properties using factors such as price and location.
The Different Types of Properties You Can Invest In
Residential properties are homes that people live in and rent out to others. Types of residential properties:
Examples of residential properties include single-family homes, condominiums and townhouses. These properties are popular among homeowners who want to live near schools, shopping centers and public transportation.
Examples of Residential Property
1. Single Family Homes- 4 Bedroom House in Loresho showcased by Nyumbani
2. Condominium- 2 Bedroom Apartment in Kahawa Wendani showcased by Nyumbani
3. Townhouse- 4 Bedroom Townhouse in Lavington showcased by Nyumbani.
Commercial property is a type of property that can be used for business or commercial purposes. Examples include office spaces, retail spaces, warehouses and industrial buildings. Commercial properties are often cheaper than residential properties because they offer less space per square foot and they are not as desirable to live in.
Office Space- Panesar Centre
Marketing Strategies That Will Generate a Sustainable ROI with Real Estate Investing
Marketing for property investments is a difficult task. You need to understand what your target audience needs and wants, so that you can create marketing strategies that will generate a sustainable ROI on your investment property.
Some of the strategies that real estate investors should implement are:
-Create social media campaigns to promote their properties
-Use email campaigns to drive traffic to their website and promote their properties
-Invest in video marketing/ virtual tours to reach a wider audience
-Invest in search engine optimization techniques
Investing in real estate can be a great way to diversify your portfolio. It is not always easy to know where to start but that first step is always important to take. Do your research and visit real estate directories such as Nyumbani to know the available options to you.