Knowing where to invest, how to invest, who to invest with and when to invest is very important in managing your funds especially if you live abroad. My focus is to highlight the ‘where’ to invest. Unarguably, where to invest with substantial returns on investment is real estate. Do you have enough motivating reasons to invest in real estate?
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| House for sale in Benin City |
Consider the immortal statement of Louis Glickman:
“The Best Investment on Earth is Earth” A careful study of this statement
shows that real estate investment is far
better than other investment options like crypto currency, stocks, bonds,
mutual funds, and savings in the bank.
Crypto currency is highly volatile and subject to the influence of market forces. Forex trade is another volatile investment option. For you to gain, the other person has to loose. You can be rich overnight, and you can loose all your money overnight. It’s never a win-win situation. But in real estate investment, there is stability, your cash is secured, and appreciation is sure. It’s also a liquid asset. The ease at which you can resell with a profit is enticing.
Watch PART 1 of the Video on this topic on Youtube below. subscribe to the CHANNEL
8 Reasons Why You Should Invest in Real Estate
1. Passive
income
2. Leverage
3. It’s
a tangible asset
4. The
value appreciates
5. It
serves as a retirement income
6. Inflation
hedge
7. Legacy
building
8. Diversification
Passive income: Owning
rental properties can generate passive income, which is money that is earned
without the need for active work. This can provide a consistent stream of
income that can help to build wealth over time.
Appreciation: Real
estate can appreciate in value over time, which means that the value of the
property can increase. This can provide a significant source of wealth for
investors who hold onto their properties for the long term.
Watch PART 2 of the video on Youtube below
Leverage: Real estate
investing often involves using leverage, which means borrowing money to finance
a purchase. This can allow investors to control more property and potentially
generate higher returns on their investment.
Diversification:
Adding real estate to your investment portfolio can help to diversify your
assets and mitigate risk. This can be particularly important in times of
economic uncertainty.
Leverage Without Labour: Real Estate gives you the unfair advantage over others. You work less but earn more. John Stuart Mill provides another perspective when he said: "Landlords grow rich in their sleep". So even while doing nothing, your wealth grows. This is a lazy way of making money. Wealthy people in the society continue to harness this strategy without making any noise about it. The more the asset grows, the easier it becomes to borrow money to expand. Financial institutions like banks often bow to individuals with such portfolio, giving them money with ease.
Real estate
investments facilitate the creation of a lasting financial legacy. By building
a portfolio, investors can pass down a source of income to future generations,
solidifying real estate as a wise choice for those looking to leave a lasting
impact. It's an inherited wealth strategy. Having a real estate portfolio, it's
like laying a solid foundation for lasting wealth and prosperity. Proper
Planning of Real Estate portfolio Precedes Prosperity
Real estate proves to
be an effective hedge against inflation. As the cost of living increases, so do
rents and property values. It's a nice direct proportional relationship.
This makes real estate an attractive option for safeguarding wealth against
inflation and market volatility, especially in regions like Nigeria.
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