Real Estate Investment Options

Investing in fully developed properties,
Investing in partially developed properties, and
Investing in un-developed properties.

• Investing In Fully Developed Properties

Investors who are interested in investing in properties in fully built up areas would likely adopt this method. This is so because it will be easier to buy an already built property and modify it to taste; than to get a virgin land in the midst of a built up area and building from scratch. This kind of investment has its advantages and disadvantages, therefore investors should weigh the pros and cons before venturing into it. In brief the advantages of this option are that it saves time, and one already knows the kind of facilities available in the neighborhood. However, one may not be able to fully determine the quality of materials used in developing the property, and it would be more expensive than buying land and building from scratch.

• Investing in Partially Developed Properties

Investing in partially developed properties is another option open to real estate investors. This involves buying buildings in various stages of development (carcasses) and completing them to desired taste. This option is a faster way of developing property especially in built up areas and still be sure of the quality of materials used to a large extent. It has the advantage of being faster than building from scratch, knowing and determining the quality of materials to a large extent as well as knowing the general outlook of the neighborhood beforehand. However, it could be more expensive than building from scratch, and the quality of materials cannot be fully determined as is the case when building from scratch.

• Investing in Un-Developed Properties

This type of investment involves sourcing for virgin plots of land, designing and developing the property to the desired quality and design. While it takes a longer time to achieve, it is cheaper and more cost effective than the previously highlighted options. Undeveloped properties can be utilised in different ways; value can be added to it by developing the necessary infrastructures such as road net work, power supply, drainage system etc. and partitioning it in to serviced plots to be sold to individuals. It could also be developed into tenement blocks of flats and apartments, or even into commercial blocks for lease or sale.