Creating Wealth Through Real Estate Investments

Being wealthy is not just about having a lot of money, it is also about having an abundance of valuable possessions, and the real estate sector enables you to have both properties and money. Real estate investment is one of the best ways that you can use to create wealth. Wealth grows through compounding, which means putting money into something with the expectation of making a profit through accumulating some interest. Historically, real estate has been a consistent compounder for a simple reason: there is only so much land to build on and so many houses you can rent out!

Real estate investment is more than having a home to live in or land to build on, real estate investment opens the doors for wealth creation. Real estate properties’ potential for consistent appreciation and income generation makes the sector an excellent wealth-building tool.

Below are a few ways that investing in real estate can help you create wealth.

Buying and holding land

Land is a commodity that will always be on demand. When you invest in a parcel of land in an area with potential for growth, you open doors for wealth creation by being able to hold on to the land until its value appreciates, which will bring in great profit once sold. Safaricom Investment Co-operative offers parcels of land in prime areas like the Brookvale Tuala in Ongata Rongai, which would bring great returns once utilised well.

Buying and renting homes

Another way of creating wealth is by ensuring that you have a steady stream of income to supplement your normal income. Investing in a residential property that you can rent out or offer Air BnB services allows you to have an alternative stream of income. Properties such as The Miran Residences, which has studio lofts, studio, one-bedroom, and two-bedroom apartments, can offer Air BnB services or renting services.

Owning properties

Wealth can be measured by the number of assets that one owns. Owning a piece of land or a home brings you closer to wealth creation. Being able to own a home offers you the opportunity to channel your savings that would have been used for paying rent to other avenues that will bring you great returns. Owning the right property can help in ensuring the home will serve you for a long time leading to an increase in your net worth over time. A parcel of land, on the other hand, allows you to have a piece that can serve you in diverse ways for a very long time. The land can be used for commercial farming, leasing, or having recreational facilities such as a swimming pool, which will bring in income.

Investing in commercial real estate

Commercial real estate properties such as malls, shopping centres, and office spaces are investments that can offer you an avenue for building wealth. Such investments can bring in a steady cash flow through renting out the spaces. Commercial real estate properties have the potential for exponential growth through valuing the property rent in a manner that will bring you great returns over the years.

The journey towards wealth creation is not just for you, but also for your future generations. Choosing the right investment and working with real estate investment experts such as Safaricom Investment Co-operative will bring you closer to sustainable wealth, one property at a time.