HOW & WHERE TO INVEST WHEN INTEREST RATES ARE VERY LOW.

The falling interest rates across all tenors in Nigeria and the world over are no longer news. I’m talking about fixed deposit rates with commercial banks, government bonds, treasury bills, etc.

In fact, some countries in the West are already seeing negative interest rates. 

Yield-hungry investors and retirees who depend on interest yields on their retirement accounts are scratching their heads thinking about what to do. So, with interest rates heading south, what should you do?

Some experts would advise you to move your investments abroad. The amount of research you would have to do across several countries to eventually get a winner is enormous. Not forgetting the regulatory requirements, transaction costs among others which make foreign investments hard to get into.

Others would recommend getting into dividend-paying stocks. I mean, not all of us have the guts, risk appetite or tolerance to venture into the equity market. 

You see, at times, hard times call for hard decisions but any decision that does not potentially involve capital maximization isn’t always worth the associated efforts.

I am sure you’re wondering what better alternatives exist.

The answer to all of this isn’t far fetched really.

It’s all around you. You interact with it daily.

You probably have some working for you already, bringing in passive income.

I’m talking about Real estate. Luxury real estate precisely.

The market for it is small but very consistent and in a market like Lagos, you can’t go wrong holding one or more of these.

The property appreciation is timely, rental yield is impeccable at 30% and above especially in an estate like the PERIWINKLE LIFESTYLE ESTATE situated just at the end of Freedom Way, Ikate, Lekki Phase 1.

The serene waterfront view, garden & green areas, jogging area, shopping malls, cinemas, detachment from the bustle make it an ideal destination for expatriates, elite Nigerians, sportsmen, professionals & senior executives working in the Lekki/ Ikoyi/ VI axis.

It is the quintessential live, work, and play environment in Lekki.

Low-interest rates really have nothing on you if your funds are locked in on luxurious real estate assets that have cash flow consistently.

Now, the best part- all the properties at the Periwinkle Lifestyle Estate are actually off-plan (meaning they are under construction). This is good news because the cost of purchasing land; 1,2,3 bedroom flats; 4 bedroom penthouse; terrace duplex or even a fully detached duplex is at the lowest price ever.

Once development is concluded, the prices go up immediately.

Pro tip- Where you buy (location) and when you buy (timing also price) property are perhaps the biggest considerations in real estate.

 

Ben ‘Luxury Real Estate’ Chiedu