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Many people, when they hear about the word “Investment”, first thing that comes in their mind is equity investment. The reason behind it is, with equity investment you can start investment with small amount of money, and still you can hope to have good profit if you have followed good investment ideas. On the other hand, real estate investment is equally good. In fact, it can give you more profits than equity investments. Sometime the prices of stock may goes up’s and down’s, but in real estate, it is not so, rather, the price of land constantly increases. The price of land hardly goes down.

The other factor to the advantage of real estate investment is the population figure. A country like Nigeria has a population of over 140 million, where the population increases 3 to 4 % per anum. This increase in population requires more land which demands more lands and houses at a faster pace, government alone cannot meet up with this huge demand. This alone makes investment in the real estate sector to be a gold mine of profits.

To say in simple words, real estate investments is purchasing or managing land or landed properties. Land is nothing but the area, where as the land properties are houses or buildings like residential complexes, hotels, office accommodations, commercial complexes etc. These are the properties that are very rewarding in terms of return on investment. Whether it might be stocks or any other investments there are some factors that should be considered before investing to gain good profits. In the same way, we have some important and crucial factors to be considered before starting in to the real estate investment.

There are some factors that affect the price of the land property to either go high or go down. This depends on people, environment or place and one of the factors that affect the increase or decrease in profit is geographical factor. This deals with the location of the property. The economic, social or political activities play major roles in determining the cost of the property or land. In real estate investment we have to be careful in choosing location of the land or property.

Any property which is in the centre of politically active area or at the center of core governmental area or at the centre of a town or city always attracts a premium price tag. Even though the property is not well designed; the environment will push up the price of the property. On the other hand, a well structured or well designed property with an expensive fittings and all the stuff, but is located in the remote or poor area, due to environment the property will not attract a good price as it is supposed. These are some factors that should be considered in the real estate investment.

The best source for up to date facts about buying and selling a home or real estate investment is the National Association of Realtors (NAR). The NAR has done the extensive research and had provided some facts. According to the NAR 2005, 79% of all home buyers use the internet as an information source. In the fourth quarter of 2005, the homeownership rate was 69%. In 2005, in the survey made by NAR, the facts came out by the home buyers is that they first know about the house they brought is, 24% said through internet; 36% said real estate agents; 15% said yard signs; 7% said friend/relatives/neighbors; 5% said news paper advertisement; 7% said builders. These are the some of the facts behind the real estate investment.