Investing in Real Estate with One thousand Naira.
Crazy huh? When I started writing this, I wanted to start from 100,000 Naira. It seemed insane to start from this number, but something nudged me to kick off this series from an extreme number.
If you're reading this, you paid for internet data in the last 30 days with at least 1000 naira. So this number isn't strange from an expense point of view, but it is odd from an investment point of view.
Everyone wants the prestige and security that comes with owning a family home. It is a long journey, and it requires baby steps.
Perhaps the biggest baby step is considering 1000 naira to invest in real estate in the first place.?
The first thing to consider is why you want to invest…
Typically, if you have this money, you are testing out the waters, and you mainly want to learn about investing, which is perfect.
There are a couple of ways to start investing. Still, all those ways will produce returns that might be discouraging, especially if you tell yourself to invest long-term, so I will let you in on a secret.
Aside from a juicy wrap of shawarma, the best way to treat this money is to save it, create a dedicated account, and decide to fund that account with 1000 naira continuously. Chances are that you will need to create a strong and consistent habit for the money to have a meaningful impact on your life.
If you do it weekly, you will get N4000 per month. This allows you to have the flexibility of funds in case you want to liquidate; you can easily do it.
Let's be practical.
Step 1: Create a goal. Why am I doing this? To build wealth? To learn about Investing? To have some emergency fund? You need a driver for this decision.
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Step 2: Open a High-interest Dollar account and a Naira Account. This allows you to have some flexibility to withdraw and save over time.
Step 3: Automate the process, Structuring a daily, weekly, and Monthly? savings
Investing in Real Estate has historically been very expensive. It would require more capital from your end to get started. But I'm happy to start you off on the journey.?
Practically, there are a couple of ways to still invest in Real Estate through what is Known as REITs. REITs are Companies that manage and own real estate assets, they are publicly traded in the stock market. They allow us to essentially buy a piece of real estate indirectly through the lens of a company and most of the time, 90% of returns are paid periodically to shareholders. They are the cheapest forms of Real Estate Investing and we would explore which to pick in the coming articles.
For Now you can explore these options.
List of REITs
Here are some examples of REITs:
If you want to speak to an investment advisor click here.
Thanks for reading!
Let me know in the comments your experience and what you learned.