The act of deploying money, efforts or time into an economic venture to make a profit or gain.
Classes of Investment?
- Ownership Investment, e.g Sole proprietorship, Partnership, Limited Liability Company e.t.c
- Purchase and sale of stocks and shares
- Purchase of precious objects e.g. gold. diamond
- Lending Investment e.g, savings account, fixed deposit. e.t.c
- Collective Investment which is the bringing together of investors under a single umbrella e.g. real estate investment trusts (REITs), esusu
- Real Estate Investment, which is the purchase and sale of fixed property, e.g land, buildings e.t.c.
Real Estate Investment?
This refers to fixed and Immovable property, acquired by an investor with a view to generating income and capital appreciation
Real Estate Investment Vehicles/Channels
- Individual investor
- Collective investment. This can be undertaken by two or more persons by pulling their financial resources together. e.g REITs
- Corporate investment. Also known as artificial persons, corporate bodies can also invest in real estate.
Types of Real Estate Investment
- Purchase of land
- Purchase of a building
- Construction of a building
- Renovation of acquired building
- Estate development
Benefits of Real Estate Investment
- Source of Income
- Provision of Shelter
- Capital appreciation
- Can be used as collateral for a loan facility
- Profitability consideration
Challenges
- Funding
- Investigation of title and cost of perfection of title
- Acquisition by the government
- Natural disasters
- Wars and hostilities.
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