Is a real estate business beneficial?

Real Estate in Kenya is a good Investment - CommercialKe

Real estate is just like any other business. If you handle your assets well, the returns will also treat you well. It’s a mutual relationship between the business and the owner. And in real estate is one business earning profits can be quite simple if you understand the ways in which you can achieve this. There are two major ways in which you can earn profits through real estate;

Profits through appreciation of the properties

Appreciation is the increase in value of an asset over time. This accounts for the most collective way in which real estate agents earn their profits. These assets could be in form of underdeveloped land, commercial properties or even residential properties. The market is really unpredictable and volatile. The most profitable time for these properties is when demand is high and the supply of the property is scarce. This translates to higher prices. But for the business owner, the business is in a boom hence profits are in order.

However, in the case of the underdeveloped land, development plays a big role in marketing these properties. This will in turn steer a rise in demand to the property. Patience also plays a key role in the real estate business.

Profits through income

Here, income is generated through rents. These are given prices that residents come into agreement with the property owners to be paid at a certain period of time. And this incorporates mostly the residential and commercial properties. Tenants are usually selective when it comes to residential areas especially based on the location. If you want to attract more tenants, set up your residential properties in places that most preferred by your customers. You may also land on big gigs like establishing structures for companies. Either way income is being generated, the advantage is that the profits are massive.

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