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July 18, 2018, 04:20:28 AM |
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Real estate is recognized as a source of substantial returns and functions as one of the preeminent store of value assets. This value is derived from land which has an immense potential to appreciate in value and can be developed into an income producing asset that generates additional wealth. The accumulation of wealth and other advantages such as leverage, scalability, diversification and recession-proof have attracted many investors to exploit this investment approach. Many investors’ real estate assets are held in the secondary market through home ownership, supplementary properties, real estate income trusts (REITs) and new options such as real estate limited partnerships. Real estate development, the most prosperous real estate investment strategy, is vitally under exploited. In spite of the huge profit potential, many investors are dissuaded from this investment method due to its excessive capital requirements, extensive time commitment, enormous knowledge obligation and the risk responsibility. This primary market is critically under financed by private capital, allotting the potentially high yields to the affluent investor and large investment firms.
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