Acquiring property is one of the most pivotal decisions most people will make in their lifetime, and it is no wonder therefore that people tend to spend a lot of time researching before making a purchase. Information online can be confusing, as some resources claim that a property is an asset while some claim it is a liability. This article will discuss the reality of investing in property and how to make the right acquisition.
The right property can be a great asset in your investment portfolio. This is because it provides the following benefits.
- Financial and Emotional Security. Owning property means you and your family do not have to worry about being thrown out of your home when you lose your main income source.
- Store of value. The value of property tends to rise each year, thus an investment in property is a good way to ensure that your wealth is protected from inflation and currency depreciation.
- Rental income. Owning property provides you the opportunity to earn extra income through renting out for extended periods or even nightly.
- Collateral for loans. Should you require loans from a bank or other finance company, your property will serve as an excellent collateral that helps for your loan application to be approved.
- With your own property, you are free to save or invest money that would otherwise have gone into rent.
- Inheritable wealth. Passing down property to your children is a sure way of setting them on a solid financial foundation.
Despite these significant benefits, when you make a mistake by investing in the wrong kind of property, it can be a liability. Some of the challenges you may face include.
- High repairs and maintenance costs due to inferior building quality. If you purchase property that has not been built by a tried-and-tested developer, you may end up spending so much on repairs and maintenance that it will make the property a drain on your resources.
- Low rate of price appreciation due to poor location. Even though property prices usually go up, the choice of a poor location can leave your property value unchanged for years. This is why you should seek property from an experienced developer who has ensured that the location has all the necessary amenities to make it desirable.
- Lack of demand for rental. If the property does not have the right facilities and is not in a desirable location, then it would be difficult to find tenants or short-term occupants. This challenge can be avoided by purchasing from a developer who has ensured that all the facilities that will command an attractive rental price has been provided.
- Excessive insurance premiums. Where insurance companies cannot vouch for the quality of the property, they are likely to charge higher premiums to insure the property because of the heightened risk. You can get fairer insurance premiums when the insurance company is familiar with the quality provided by a developer. This is because the insurance company knows that risks of fire, theft, and damage have been reduced to the barest minimum.
- High property rates. The purchase of property that does not appreciate in value or generate rental income can make even modest property rates look excessive in comparison. This can be avoided by purchasing property from a developer who has a track record of generating attractive value for clients.
It is clear from the challenges described that the best way to avoid your investment in real estate from becoming a liability is by purchasing from a trusted real estate developer such as the CPL group. With over two decades of experience, they have built a reputation for creating value for their clients with developments such as Oasis Park Residences (Tetteh Quarshie) and Avenue Gardens (Airport Residential Area).
Their new flagship development at East Legon, Belmonte, provides executive studio, one-bedroom, and two-bedroom apartments that includes features such as high-speed elevators, CCTV & fire protection, premium porcelain bathrooms, high-speed internet, back up water and electricity systems and many more. Their experience with previous developments gives the assurance that Belmonte will be an excellent addition to the portfolio of anyone seeking a luxurious living experience or a high-income generating asset.
Contact CPL through sales@CPLestatesgh.com or call 0535177877 / 0204343011 and ask them about Belmonte and their other real estate offering.
BY Ing. Stephen Debrah- Ablormeti, CEO, CPL Developers Limited