In today’s world, real estate is a profitable investment that has drawn a variety of celebrities. However, a career in real estate investing has many obstacles that scholars need to consider in order to make the right choices about their potential careers. As a person with a great deal of interest in real estate, my field of specialization would be housing. In particular, I’m going to concentrate on the ownership of apartments to help realize my investment aspirations. The housing market has a number of challenges that need to be understood effectively by individuals to better make wise investment decisions. Challenges in the housing market typically arise from various outlets. Therefore, it is critical for an investor in the housing sector to initiate efficient strategies for solving the issues that arise in the investment described above.
Career in Commercial Real Estate Investment
The first issue in the housing sector results from the activities of the tenants in a given apartment. An examination of the various flats indicates that some of the tenants cause inconveniences in the housing sector due to late payment of rents. Indeed, the delays in paying rents significantly impede proper planning and accounting for the revenues that an investor receives from a given apartment. Also, the security issues of the tenants are prevalent in the housing sector. A career in commercial real estate investment is lucrative due to the increase in human population and urbanization, a factor that has significantly enhanced the need to increase the number of houses (Makinde, 2014). Therefore, the demand for homes increases leading to an increase in revenues that the owners of apartments receive. However, the maintenances on the flats are often costly and can significantly reduce the incomes that investors receive from their apartments. Apart from the costs that the apartment owners incur, the damages on the houses pose various risks to the lives of the tenants and can lead to death when the houses collapse.
The housing authorities can also restrict the use of a given apartment that they have discovered to be posing significant risks to the welfare of humankind. In the past, the regulatory authorities had not formulated numerous policies to guide the construction and maintenance of houses thus investors in commercial estates were generating substantial incomes. The research on the housing sector indicates that tenants also damage apartments thereby increasing the maintenance costs that a housing investor incurs (Kazimoto, 2016). Initially, the issues concerning the investors in the housing sector could efficiently solve the problems that relate to tenant’s rent payment; however, in the contemporary society, the government has established various policies that significantly deteriorate the processes of handling the issues concerning the tenants’ inconveniences.
An analysis of the housing sector also indicates that the construction of houses and purchase of apartments are enormous challenges to the personalities in the real estate investments. Kazimoto (2016) argues that the government policies concerning the construction of houses are stringent hence impede the desires of the real estate investors to engage in the housing programs. Also, the ownership of apartments faces the challenge of capital acquisition due to the deficiency of housing finance arrangements, and strict conditions for acquiring loans from banks (Kamau, 2015). In the past, the real estate had minimal regulations, but presently, the government policies on the sector above have tremendously increased. Also, the acquisition of funds for investment in the housing programs was leaner compared to the processes in the current society. Therefore, the challenges concerning the costs of purchase or construction of apartments have adversely affected the career in commercial real estate investment.
After the analysis of the career in commercial real estate investments, it is crucial to conduct public education for the citizens. The sensitization of the community on the investment strategy above is critical in the improvement of the economic progress in the society. However, in the course of sensitizing the community on commercial real estate investments, I discovered that there are various civic issues that one can encounter due to lack of awareness among the society members concerning the policies that the government has established to guide the investment in housing programs. A majority of the citizens are not aware that the government has set various policies to govern the purchase and sale of apartments.
I also discovered that another critical challenge in the commercial real estate investment is lack of adequate information concerning the acquisition of capital for the purchase or construction of houses in the society. A majority of the citizens are not aware of the mortgages that banks offer to the individuals who intend to invest in the housing programs. Consequently, most of the investors in the real estate do not seek financial aids from the lending institutions within their communities. Finally, the public issue that I encountered in the course of sensitizing the society about commercial real estate investment is that most of the citizens are not aware that investment in housing programs is a lucrative business that can significantly improve their economic statuses. For instance, some of the citizens lack information about the various investment plans that are available in the contemporary society.
Through the community service, I have learned that the real estate investment has various issues that significantly affect the plans of the potential investors. The problems that affect the investors in the commercial real estate investments need proper solutions to help encourage the society’s involvement in the business of construction and sale of houses. First, I have learned that a majority of the citizens require proper sensitization on the policies that the government has established concerning investment in the commercial real estate. Precisely, the community needs awareness on the taxation and planning of the lands where investors build apartments. Also, it is critical to educate the society on the strategies that they can use in the process of acquiring funds from the banks. For instance, the banks need to employ agents who can sensitize the society about the types of resources available and the procedures for acquiring the housing mortgages. Indeed, proper education on the acquisition of funds will play a critical role in increasing the number of investors in the real estate programs.
Finally, I have discovered that it is essential that the government establish programs for sensitizing the society about the various investment plans in the community. Indeed, a majority of the citizens lack information about investment in the real estates. Consequently, the potential investors in the real estate sector crowd other sectors in the economy thereby reducing the rate of development in the critical areas such as infrastructure. The application of the previously described recommendations will significantly aid in the improvement of the economic growth and development in the society.
Kamau, K. M. Challenges and Prospects of Real Estate Investment Trusts (Reits) Financing of Real Estate in Kenya.
Retrieved from http://erepository.uonbi.ac.ke/bitstream/handle/11295/99321/CHALLENGES%20AND%20PROSPECTS%20OF%20REAL%20ESTATE%20INVESTMENT%20TRUSTS%20NEW-modified%20(Autosaved)-completed%202.pdf?sequence=1&isAllowed=y
Kazimoto, P. (2016). Challenges facing real estate investment and economic growth.
Retrieved from http://www.indusedu.org/pdfs/IJRIME/IJRIME_758_79934.pdf
Makinde, O. O. (2014). Housing delivery system, need and demand. Environment, development and sustainability, 16(1), 49-69.
Retrieved from https://link.springer.com/content/pdf/10.1007%252Fs10668-013-9474-9.pdf