In this edition, we aim to shed light on the pressing global and national problems that demand our attention and immediate action.
Inflation is a persistent threat to our financial stability and the overall health of our economy. It erodes the value of our hard-earned money, making it increasingly difficult to meet our basic needs and achieve our long-term goals.
Presently, there is so much panic in Nigeria due to the constant increase in inflation of over 100%. Food, Household materials, Transportation and everything have been affected by inflation.
Staying updated would assist you in making informed decisions and taking proactive measures to stay ahead of inflation.
What are the investment instruments to avoid inflation during this period?
Forex: Certainly! Investing in forex comes with several risks that you should be aware of. The prices fluctuate rapidly and unpredictably which are influenced by various factors such as economic indicators, geopolitical events, and central bank policies.
Treasury bills and other government securities: Treasury bills offer lower returns compared to other investments such as stocks or high-yield bonds. They are also vulnerable to the loss of purchasing power due to the rise of prices in the economy. Treasury bills lose market value when interest rates rise, as investors can find higher interest income elsewhere.
Nowadays, there are seemingly endless choices about where to invest your money. Either residential or commercial property, Stocks, shares or bonds, mutual funds, exchange-traded funds (ETFs), commodities, Gold and a lot more.
Despite the investment options, most investors come back to the basic choice between investing in property.
Why you should invest in land?
“Property investment is a major wealth creator” Obviously, one of the key objectives of any investment is to maximize profits whilst minimizing risks. Within the property sector, there are 5 major advantages of owning or investing in land”.
- Land value appreciation: Take the Lekki-Epe development for instance, the largest and most ambitious urbanization project in Nigeria. It has attracted significant investments from both local and international developers, leading to rapid growth and development with over 63% increase in two years. Epe is the new Lagos zone, commanding high-value appreciation that will pay off with over 100%.
- Transfer of wealth: Have you wondered about creating wealth for your children’s children so that your 4th/5th generation will have financial freedom? Try owning Assets that will generate you annual income, yet appreciate over time, then you go to sleep with an easy retirement and enjoy the fruit of your labor.
- Land Banking: A smart investor saves money on assets that guarantee high returns. For instance, buying a property at Epe Lagos today will appreciate over a 100% increase in 1 year which automatically generates premium value.
- Land Rental Income: You do not necessarily buy a property to live in, you can decide to build and place on rent for either, monthly, annually or quarterly.
- Agro Real Estate: Recently, the cost of food increased continuously due to the rate of inflation do you know that last year with #25,000 you could buy a bag of rice but presently, this would not even get you half a bag of rice? The best way to save the cost is by engaging in Agro-Real Estate.
One effective way to combat inflation is by investing wisely. Traditional savings accounts may not provide the necessary returns to outpace inflation. It is essential to explore the real estate opportunities and diversifying your investment portfolio can help mitigate risks and increase the chances of earning higher returns that outpace inflation.
Additionally, you must prioritize saving and budgeting. By consistently setting aside a portion of our income and living within our means.
Should we assist you in building a financial cushion that would protect you from the impact of inflation?
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