The peculiarity of this season is one we must tap into. Sometimes in order to move forward, you need to learn from experiences of the past. The history of America shows that the men who rebuilt the economy during recessions harnessed the opportunities they found in the economic crisis of the period.
Nigeria is not different: in the economic crisis we face today in the country there is wealth to be created, you just need to know how.
There are key investment to be made that can guarantee a worthy increase. Amidst the many opportunities in the market, this month I will be looking at two key industries that can be exploited for wealth creation.
Yes I said real estate. In these tricky times where you think people do not have disposable income it’s actually a great time to invest in this sector, especially if you have a long term view and you’re not looking for quick returns. With the current drop in the prices of land and built property you could buy for long term investment which would appreciate and can be sold at a time when the economy is on an upswing and the market value would have risen. You could also invest in developed property that can yield returns in rent or lease income.
As much as these are tricky times for the real estate industry, if you have a plan and access the products properly you will be best positioned to make the best out of this industry. ‘How do I fund this property acquisition?’ I hear you ask. The easiest (though most expensive option) would be to get a mortgage from a bank. However, there are also established institutions created to aid property acquisitions at a cheaper rate – especially in partnerships with state governments who are looking to resolve housing issues by partnering with individuals.
These include Federal Mortgage Bank of Nigeria, Nigeria Mortgage Refinance Company, Imperial Homes Mortgage Bank, etc. Contact them and tap into the many schemes they run. Bear in mind though that the process of getting the facility/scheme may be fairly lengthy.
Now is a great time to buy some shares in that company you have always wanted to invest in. The volatility in most
share prices between 2015 and 2016 has been quite significant, leading to opportunities to trade (provided of course you monitor the movements VERY closely) and also buy to keep. If you’re buying to keep, my advice would be to stick to blue chip companies as they are generally structured to be around for the long haul and are able to weather most economic storms.
There has been quite a dip in the price of shares compared to this time last year which has made it easier to invest in shares as part of a long term investment plan. The economy is on the way to rebuilding itself which should in turn raise the value of your investment shares over time. Just as a guide, here are some comparisons of some blue chip company shares in 2015 against 2016.
Company (February 2015 Average) (February 2016 Average)[/infobox]
- GTBank N22 N16
- First Bank N3 N6
- Nestle N767 N670
- Guinness N122 N115
As always, do your homework and talk to experts before investing.
These are just two out of many opportunities out there. Study economic outlooks for the year and look at the industries to watch out for as these investments are sure to create a secure financial future for you.
In the next issue we will go through key areas to look at for when trying to make an investment decision.
Rolayo Akhigbe is a Holistic Finance Specialist passionate about helping people invest wisely in their emotional, physical and financial health. Connect with her on the following: Website www.RolayoAkhigbe.com | Email: [email protected] | Twitter @rolayoakhigbe | Instagram: ROLAYOAKHIGBE | Facebook RolayoAkhigbeInspire