Real estate is a property comprising of land and the buildings on it as well as the natural resources of the land including uncultivated flora and fauna, farmed crops and livestock, water and minerals. Real estate investment on the other hand simply means the purchase of a future income stream from property.
Many will wonder why is so much attention being given to real estate out of the numerous things someone can invest in. Come along let’s find out. The following are the benefits of investing in real estate among others.
1. Competitive Risk-Adjusted Returns: Based on data from the National Council of Real Estate Investment Fiduciaries (NCREIF), private market commercial real estate returned an average of 8.4% over the 10-year period from 2000 to 2010. This credible performance was achieved, together with low instability relative to equities and bonds, for highly competitive risk-adjusted returns.
2. High Tangible Asset Value: Unlike stocks and to some extent bonds, an investment in real estate is backed by a high level of brick and mortar. This helps reduce the principal-agent conflict, or the extent to which the interest of the investor is dependent on the integrity and competence of managers.
3. Attractive and Stable Income Returns: A key feature of real estate investment is the significant proportion of total return. Real estate is also attractive when compared with more traditional source of income return.
4. Portfolio Diversification: Another benefit of investing in real estate is its diversification potential. Real estate has a low and in some cases, 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.
5. Hedge against Inflation: The inflation hedging capability of real estate stems from the positive relationship between GDP growth and demand for real estate. As economy expands, the demand for real estate drives rents higher and this in turn translates into higher capital values.
If you are still doubting whether to venture into real estate investment , clear your doubt today!
Our cheap and affordable lands at Ibeju Lekki are still selling fast. For more information or enquiries, visit http://www.vafiero.com or call 08025013032, 014531189. Your Investment is SAFE with us.
1. Competitive Risk-Adjusted Returns: Based on data from the National Council of Real Estate Investment Fiduciaries (NCREIF), private market commercial real estate returned an average of 8.4% over the 10-year period from 2000 to 2010. This credible performance was achieved, together with low instability relative to equities and bonds, for highly competitive risk-adjusted returns.
2. High Tangible Asset Value: Unlike stocks and to some extent bonds, an investment in real estate is backed by a high level of brick and mortar. This helps reduce the principal-agent conflict, or the extent to which the interest of the investor is dependent on the integrity and competence of managers.
3. Attractive and Stable Income Returns: A key feature of real estate investment is the significant proportion of total return. Real estate is also attractive when compared with more traditional source of income return.
4. Portfolio Diversification: Another benefit of investing in real estate is its diversification potential. Real estate has a low and in some cases, 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.
5. Hedge against Inflation: The inflation hedging capability of real estate stems from the positive relationship between GDP growth and demand for real estate. As economy expands, the demand for real estate drives rents higher and this in turn translates into higher capital values.
If you are still doubting whether to venture into real estate investment , clear your doubt today!
Our cheap and affordable lands at Ibeju Lekki are still selling fast. For more information or enquiries, visit http://www.vafiero.com or call 08025013032, 014531189. Your Investment is SAFE with us.
At Vafiero International Limited, EVERY SQUARE METER COUNTS