Real estate investment cannot be talked about in isolation.
I don’t mock or laugh at people’s losses that’s why this post looks like an “I told you so” post but the truth is that it isn’t. After this chat with one of my favourite UK clients about her real estate investment, I was inspired to do a property talk which I did and I remember vividly highlighting and making 6-month projections of different investment plans. It’s less than 3 months and 80% of the projections have come to pass.
We need to stop hiding under the guise of financial illiteracy, some outcomes are logical plus you don’t need a degree to understand the money cycle… Hello, this is the 21st century!
While many may blame Elon Musk, China’s directive to its institutions to ban cryptocurrencies, and all reasons provided by financial experts. The question is are they to blame?
The excuse that the country is hard should be the more reason you shouldn’t put all “your eggs in one basket”
Here I am thinking Ponzi schemes, fraudulent investment schemes and other terrible money quick schemes like MMM, MBA forex, Quintessential investment owned by Joshua Kayode have taught us serious lessons but here we are.
During the crypto boom, I did a Lil research to find out how much Nigerians know about cryptocurrency and the percentage was extremely low. It may interest you to know that a huge chunk of hard hitters has below-average knowledge of the market, they are only involved because of the returns.
Diversification
Unfortunately, we are in a country where diversification is not a choice but a must. That’s why May 19th is a RED DAY! For a lot of people. Diversification is spreading your risk across different types of investments, the goal being to increase your odds of investment success. It’s like saying since no one can know for certain who is going to win this race, let’s bet on everyone.
Diversification is important in investing because markets can be volatile and unpredictable.
Advantages of Diversification
Diversification helps Minimizing the risk of loss, increases sales and revenue, reduces the impact of market volatility, Helps seek advantage of different investment instruments. Helps achieve long-term investment plans. Helps avail of the benefit of compounding of interest. Help keep the capital safe.
There will always be unpleasant surprises within a single investment just like putting all your life savings in crypto. Being diversified can help in balancing such surprises.
Real Estate Investment is Ever-Green
Now, this is a FACT! One of the constant things almost all BILLIONAIRES have is REAL ESTATE. While there are over 256 billionaires whose main business is real estate. This was better explained when Andrew Carnegie said “Ninety percent of all millionaires become so through owning real estate and Russel sage over a century ago that Russel sage said over a century ago “Real estate is an imperishable asset, ever-increasing in value. It is the most solid security that human ingenuity has devised. It is the basis of all security and about the only indestructible security.” and to think this quote is still relevant to date.
Those who have read https://cozyhavenscentre.com/sustainable-wealth-despite-the-inflation/ know I have nothing against all other forms of investment. Real estate investment is not a get-money-quick scheme but it is a guaranteed wealth plan that has been passed down for ages. It is solid, it is tangible, not imaginary.
Rick Ross said Stock and Shares are fine but I prefer to invest in something that I can touch like Real estate…aside from the fact that he has the biggest mansion in the state of Georgia and before you say he is talking like a black man.
Can you mention an investment that never depreciates with a GUARANTEED Return on investment with no heart attack involved….. I am waiting!!!
Real Estate Investments Facts
Let’s look at some stats and facts:
Only 29% of the Earth consist of land
There is an annual increase of at least 80 million people added every year
Nigeria is the most populous country in the world and Number 7 in the world with above 200 million population
Population growth rate: over 2.6 % annually
Fertility rate: over 5 births per woman
Housing deficit: over 22 million
Should I continue?
What anyone and everyone can deduce from the above, is that for something so limited and scarce as land, a lot of people need it. Either to live or for investment.
Kathy Fettke said ”The bottom line: investing in real estate is smart because a property is tangible. People always have, and always will need shelter. This means it is very unlikely that our need for shelter (ie: buying or renting homes) will ever go away.”
Conclusion
Let me leave you with one of my favourite real estate quote from Franklin Delano Roosevelt the 32nd American president, he said “Real estate cannot be lost or stolen, nor can it be carried away. Purchased with common sense, paid for in full, and managed with reasonable care, it is about the safest investment in the world.”
Advice: Don’t put your money where your mouth is, put your money where your head and your mind are. Learn before you make an investment decision, don’t act based on impulse and hearsay. To some the crypto memes fest are funny, to others, it should be a lesson. When you see somebody else fall, don’t laugh. LEARN! – Minister Louis Farrakhan
