Myths and misconceptions about Real Estate investment
There are a number of factors playing a role in real estate investment, including tax incentives, fluctuating market conditions and economic strength. However, figures show that fewer people invest in real estate than the stock market, raising the question why?
It is just too risky
Whilst investing in property comes with risks, so do all investments. The property market is an increasingly attractive way to make money, as long as time and effort is spent researching the current property market, and its changing conditions. With the help of experts, you can make a calculated decision before taking action.
The Ghana Real Estate Developers Association (GREDA), a body of private real estate developers, organizes periodic seminars and workshops to provide valuable information for members.
The more properties you own, the easier it is to make money
Real estate is not a get-rich-quick investment; it can take time to develop a good cash flow. Managing a lot of rental properties at once takes a lot of time, and resources. By nurturing your investments, you may be able to afford a property manager. However in the initial stages, it makes more financial sense to start off small.
Only the wealthy can invest in property
While it is true that you need to enter into property investment with financial security, you do not need to be wealthy to invest in real estate. It is realistic to consider that a property will appreciate in the long-term. If you can plan, research, and negotiate a good deal for the right property with profit potential, you can successfully make a smart investment.
By limiting yourself geographically, you are ignoring investment opportunities, both in the same country and globally, that may be more profitable. Whether you would want to live in this location or not, consider how attractive the area may be for those looking to rent. Are there attractive local amenities? Is it well connected? Is the neighborhood desirable? These are all questions to ask yourself when considering the location of your investment.