Why Property Investment for your Children will do well for both of you
To be honest with you reading this, real estate Investments typically take time before they yield large returns.
This is why if you start today and invest smartly, you’ll be patting yourself on the back a couple of years from now for a job well done.
Like any other investment, real estate investments make sense if you understand what you are doing and be diligent enough to do your work and research when investing in real estate.
Today we will look at why property investment for your children will do well for both of you. The country as at now is not a friendly one whereby the government has a plan for you or your children.
I remember a few years back during my undergraduate days. I have a friend then who survive in school with their parent real estate investment plan.
They died when she was about gaining admission to the university. She had cried and felt the pain of losing her parent but not only that, they had left seven children behind and being the third born there is a lot of responsibility to face.
How would they survive she thought?
Their parent has houses in almost prime areas in Ibadan and when they died; their children are to take over from those properties which mean there’s a will to back that up.
Another one was during my youth service year I had a close friend who told me his own story about how he and his brother are enjoying their parent investment and that is what they had used to pay school fees till they graduated and served.
Investing in your child or children could be of many benefits.
How Could Buying Land Be An Investment In my Children’s Future?
Most people that invest in properties do so for a couple of reasons. They either want it for the near future to perhaps build on, or they may be thinking of it for a long term investment.
Couples that have children usually always think about how they can make the future secure for their children, but often don’t consider that purchasing land while they are at a very young age could provide an excellent future for them too.
Let’s consider some benefits
Raw Land Requires no Upkeep
Buying raw land requires no upkeep at all. Whereas if you were to invest in a property that was already built on then you would have the upkeep costs of this over the years which is not a bad idea to invest in those kinds of properties.
But raw land will be good as it requires no upkeep. Just buy, fence and keep for your children
Having raw land that could be signed over to them when they become of age would really give them some options of either building on the land or selling it at the current market value.
Increase in Land Value over Time
There are many different types of investments that could be made for children. There is the stock market which can be volatile at any given time, or there are all kinds of savings accounts.
What you really need to look at is what would the return on investment be for these? With stocks, there are big risks, and with savings accounts they are solid but the interest gained is low.
But in property investment, Let’s say you invest 300,000 in a property at the time of your child’s birth. If the land appreciates even by a mere 5% or 10% per year, by the time your child is 20, that same property you purchased 18 years back, has doubled in its original purchase price.
Investing in your Children or when buying property for your children you also want to consider some of the other options that may be available to you.
Buying it for them to build a home on is just one consideration. You want to know what other uses could be made of the land. For example, if it is land that has a lot of timber then perhaps an income could be gleaned from the land. Or if it is agricultural farmland, your children when they get older may want to work on the land for farm use.
There are many more benefits that will help your real estate investment plan for your children. The benefits provided here in this post is not limited here.
The great thing about land investment is that you just sit and wait until the land appreciates, find the right time to sell and make money off of something that requires little to no maintenance. It’s a safe way to secure a nest of an egg for your children when the time comes.
Invest in your child today a few years from now you’ll wish you did.
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Adeyeye IfeOluwa is a Web Designer & Developer, Digital marketer, Real Estate Consultant, and Writer
Landsprout.com came with a passion to help you achieve wealth in real estate investment and solve the hassle within it.
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