By youth perspective
ONE of the best pieces of advice an older adult ever gave me was to invest in real estate. Why was it the best piece of advice? Well, I haven’t invested in any real estate, not yet, at least. I have, however, read and did my due diligence on it. I am no professional in the field, so I won’t share many logistical details, but I’d like to enlighten you all on the importance of it. Our country’s economic landscape is widening daily, and the Guyana we live in is shifting its focus to more modern approaches. The concept of real estate is slowly becoming a widespread standardised practice. At least that’s what’s happening where I currently reside. I’ve heard from my late grandmother that long ago, people simply purchased lands because they saved and needed a place to house their families in our town. There was no use of the phrase “real estate”. Nowadays, the cost and value of those lands have astronomically increased from then to now. She even indicated that many people now live in regret because; “if they did know, they would buy too”.
With what my grandmother shared, I thought I didn’t want to be one of those persons who deeply regretted not investing in property. I know many young people may have inherited money, worked for their money, or looked for ways to make money in Guyana. Even though I’m a social worker, I have an immense passion for entrepreneurship.
If you’re like me and you see entrepreneurship as a “hobby” or “passion”—you can take it a step further with real estate. A property is anything that can be owned, such as a house. According to the Corporate Finance Institution, real estate is real property that consists of land and improvements, which include buildings, fixtures, roads, structures, and utility systems. Real estate investing is a financial strategy. Real estate investing is the purchase of property as a form of income. That investment is expected to generate income rather than be used as personal property or primary residence. Said investment includes the management, ownership, purchase, rental, and/or sale of property for profit.
It’s important to understand that there’s a difference between a gambler and an investor. There are two key aspects of investments; time and risk. You must take into consideration how long the term period for investment will be as well as how high the risks are for investing. There are different types of real estate; residential, industrial, commercial, land, retail spaces, mixed-use spaces, and “fix and flip spaces”. These are essentially the various classifications you can choose to invest in. Certain pointers need to be considered before investing in real estate, especially for young people. I know we don’t live in a credit-based economy.
However, many young people will always say they require capital to first invest. They have the vision but not the resources. My advice is to research and find out about the options available—you can consider loans or collaborations with experienced investors and lenders. You can analyse the pros and cons to see which options are best for you and even if no options are available—prepare yourself in case any arises. You should also be able to network and have a sense of self-confidence when you start. You should be prepared to build connections and relationships with others in the real estate industry so that your resource base is wide and accessible in times of need.
If you’re not taken seriously by certain people, you approach for investment or collaboration—know that they may be not for you, but that doesn’t mean there isn’t a group of people willing to work with a young and skillful entrepreneur like yourself. There are so many other factors to consider but the most important one of all is the need to continually educate oneself about real estate and its processes. There are tons of online resources accessible and while your information on Guyana’s market may be limited, you can always inquire with professionals already in the real estate business in Guyana about its processes here and get advice on how to get started. With the right set of skills and commitment, you can improve your quality of life for years to come with the right investments and outcomes.
