FIVE REVEALING REASONS WHY INVESTING IN REAL ESTATE IS BETTER THAN SAVING IN THE BANK

- Written by Ayobayo Babade & Atilola Ajayi

Some feel that saving money in the bank is a good strategy to building wealth. Though it is very good to save, it is not a good wealth building strategy. The gains of real estate investment far outweighs that of saving in the bank for the following reasons.

1. Currency always diminish in value while real estate appreciates: The purchasing power of money continually diminishes. The things One million naira could buy five years ago are not the same things it can buy today as the prices of goods have gone up.

However, real estate always appreciates. If you buy a plot of land in a good location, take effective possession and perfect necessary documentation today, in five years time, you can sell it for double (or even triple) the price you bought it.

2. Return on savings is infinitesimal while returns on real estate investments are huge: When you save your money in the bank or do a fixed deposit, your returns on investment are usually single digit per annum.

Conversely, based on the rate of development in the area you purchase your landed property or building, the return on investment are often huge.

If you buy a house for example and let it out to tenants, between a decade to two, you will have recovered your investment and you will continue to make profit for the rest of your life.

3. Your money in the bank simply makes the banker richer while your money in real estate makes you richer: If you save money in the bank, the money will be used by bankers to give loans to customers and you will be paid an interest. The difference between the interest given by the customer who loans your money and the amount given to you is taken by the bank. Thus making the banker richer.

On the other hand, when you invest in real estate, the difference between the price you bought the property and the price you are selling it is taken completely by you. Thus making you richer.

4. Expenses always arise to deplete your savings but your property is always there appreciating in value: When you have money saved in the bank, no matter how disciplined you are, there will always be expenses that will arise to deplete the savings.

When you invest such funds into real estate, your cash is tied into an investment that will be appreciating in value no matter how lose you are with the remaining cash in your possession.

5. None of the rich ascribe their success in gathering wealth to saving but most of them have impressive property portfolios: Of all the wealthy individuals in the world, I do not know of anyone whose wealth strategy was saving in the bank.

However, a cursory look at the wealthiest individuals in the world, in Africa and even in Nigeria show that property investment is the preferred wealth building option.

Therefore, if you desire your money to appreciate with high return on investment which makes you richer and among the wealthy men in the world, consider investing in real estate.

Noted

Good one OP

Some would rather invest in iPhone 5, 6 & 7. Things that would lose value come 12 months. The way youths of nowadays think amazes me.

This is true. I can testify because my short investment in UACN shares resulted in profit. Though i left it for a while, it was just in green. I agree that there are so many things involved in trading stocks, but real estate is always appreciating.

E

Nice article

Nice one

You are right, in my own case I started buying properties from age 22. Now I can only say, thank God.

God bless the mod on duty this morning not dat mumu lala who will be moving pant and bra topic to fp

nice one

Best Idea!!!

Anything Property Increases by the day!!!

I don buy space

I had some problems few months back which has caused my family to relocate to the village. And though most of the problems are solved, especially the internal. Pls refer to my previous post for more details.

Now, I'm here in total surrender to the WILL of God, and I'm doing just fine, but my family. Mother Inlaw has started nagging, though I understand with her, it's not easy. School has resumed, kids got to go back to school.

My wife found a way of using my POS for services in the village. Usually, from my village to where you can access a bank is a bit far. So she used a hundred thousand naira to start rendering ATM service. The money was given to her by her aunt who was keeping it for their meeting.

Daily withdrawal of that 100k will fetch extra 2-3k, at 200 naira charge per withdrawal from 1k to 5k, and 300 from 6k to 10k. This was what was sustaining them. Though it will take another 24hrs to be reimbursed after the withdrawal of the 100k, which usually got finished before 11am. She was doing just fine.

Now the money have been collected from the person she was keeping for. Taking loan in this state is callous. Help is difficult to find because of the times, the few who could, had trust issues.

The only friend who understood and is willing to do anything to see me on my feet again has no cash at hand. He however, has decided to sell off a property at Abakaliki for same price it was offered last year but he refused. The buyer however, don't have cash to pay again.

So, I wish someone can come really fast to buy that land it is cheap. Or invest in this little activity my wife has started and take it to another level. If 400k is invested, 200k to service each day, there will be a return of no less than 100k extra by the end of the month.

My business is already registered, you'll have no issue with CAC should you pick the name. Its still same operations. Just that I won't be involved. My hands are tied.

So, buy a land, invest or partner with Wify and you'll be our little Angel in this time of crises.

I wouldn't mind however, if you can just give sacrificially to help out. Then you'll be more than just an Angel. God bless you for reading, but God will bless you more for deciding to do more than just reading.

To haters just know I'm immune to your bitter comments, spill it if you care, you'll still be blessed.

Ok

Ok

Very true....land and buildings are the only thing that holds value and appreciate in a degree during a recession. Currency fluctuates , gold is another good bet to store value but the problem is purchasing power has completely been eroded for the majority. Feeding is a struggle and the number one priority

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spyder880:
You are right, in my own case I started buying properties from age 22.

spyder880:
You are right, in my own case I started buying properties from age 22.

spyder880:
You are right, in my own case I started buying properties from age 22.

Snr man i hail

Every one knows that...

It's because of inflation

I completely agree with u

I advice anybody I comes around in life , to always try as much as he can to secure a plot or more depending on individual capacity and fanacial level, I had to sacrifice the money would have used to purchase a vehicle in order to purchase 2 plots of land in oyigbo ph, and today the land is 3 times worth the purchase fee , back then , invest your money on real estate and properties, especially this recession period , But be very careful of FRAUDSTERS, they are EVERYWHERE !!!

@op, it depends on location of the properties. Sometimes it is even better to invest your money in business or TB than building one useless houses that wont give your money back in the next 10 years.

Another thing i want you to know is that,property especially houses dont usually appreciate execept it were located at commercial areas.

I dont even need to read these reasons,but what i know is that i will rather invest in real estate (consciously or sub-consciously) over savin in d bank anyday.
Infact,any money wey i first hammer na to buy land take build house.

Me wey still dey vex for my papa say im sell all d lands wey im get.

Real estate na d koko jare.

hmm

Turks:
Some would rather invest in iPhone 5, 6 & 7. Things that would lose value come 12 months. The way youths of nowadays think amazes me.

lol once u leave a phone shop it has already lost 40% or its valur

e no reach 12 month

yemmit90:
@op, it depends on location of the properties. Sometimes it is even better to invest your money in business or TB than building one useless houses that wont give your money back in the next 10 years.

Another thing i want you to know is that,property especially houses dont usually appreciate execept it were located at commercial areas.

Lands appreciates, but rate of appreciation differs greatly. But buildings depreciates (only considered appreciating if well located) and if not we'll located, will only result in little income.

Sometimes it's not just about investing but knowing the best thing to invest in. A good business will yield far more than properties that are poorly located.

So I agree with you..

Spots-on! Highly enlightening!

At Orisun Estate you can buy lands for the cheapest and most affordable payment plans in the country. Abuja, Ibeju Lekki, Ikorodu, Ifo, Simawa, Ibadan, Ede etc Call Chris 08164173622.

Oga stop lying ooo like Aunty Linda

spyder880:
You are right, in my own case I started buying properties from age 22. Now I can only say, thank God.