Investment is the act of foregoing consumption of money from one's wealth today to enhance future consumption capabilities created by an increase in the value of wealth. Investors can choose to grow their wealth through either real or financial investment asset classes. On the one hand, a real investment refers to a tangible asset class such as plots, lands, machinery and equipment, real estate among others. On the other hand, financial investment asset class refers to intangible assets such as corporate stocks or bonds, which exist in contractual agreements, put in either electronic or papers forms.
We start by looking at the reasons why investors
should consider having real estate in their investment portfolio then cover the
different real estate property themes and thus, options for investment in real
estate and conclude with the factors that investors look at when evaluating
real estate deals.
(i)
Residential
Units
Residential
rental property refers to homes that are purchased by an investor and inhabited
by tenants on a lease or other type of rental agreement. Residential property
is property zoned specifically for living or dwelling for individuals or
households; it may include standalone single-family dwellings to large,
multi-unit apartment buildings.
Owning a residential property is not all about to
lease out at the end. You can buy a residential property to build a home for
your family, which has been the case for the residents in different places like
Ngong, plots
in Matuu , Kangundo and Nakuru.
Some best real estate companies majorly deal with
this kind of property when it comes to real estate. Username Investment limited
is one of the top-notch companies you can never go wrong with especially for
Kenya citizens looking for plots
on sale from diaspora and from Kenya.
Residential rental property can be an attractive
investment. Unlike stocks, futures, and other financial investments, many
people have firsthand experience with both the rental market as tenants and the
residential real estate market as homeowners. This familiarity with the process
and the investment makes residential rental properties less intimidating than
other investments.
On top of the familiarity factor, residential rental properties can offer monthly cash flow, long-term appreciation, advantage using borrowed money, and the aforementioned tax advantages on the income the investment produces.
(ii)
Commercial
Units
In this case, investment can be made into real
estate property, which constitutes of one or a combination of offices,
warehousing or retail units intended for business usage that can be sold or
leased out for by the owner.
Commercial property has traditionally been seen as a
sound investment. Initial investment costs for the building and costs
associated with customization for tenants are higher than residential real
estate. However, overall returns can be higher, and some common headaches that
come with residential tenants are not present when dealing with a company and
clear leases.
What
are the real estate companies to go for these deals?
Username
investment limited is one of the leading real estate
companies here in Kenya and has been offering this service for the past nine
years at affordable prices and in strategic places.