Everybody is an investor. Whether you are spending your time on a learning process or going to the gym for a workout, you are unarguably investing in a set goal. However, money investment goes beyond buying properties or Treasury bills; critical calculations will help you make the right investment decisions to attain your money goals. In this article, we will be focusing on treasury bills and real estate investment plans.
When deciding on any form of investment, you need to ask yourself these questions; What are my investment goals? How long can I wait? And, when do I want my money back? Answering those questions will help you determine whether you need a short term or a long term investment plan. Treasury bills are perfect for people with short term investment goals as the maturity period ranges between 91 days to 180 days, with 364 days as the highest maturity period. The end period interest rate of any T/bills investment has been predicted to be around 12-13% in 2020.
In comparison, real estate investments are suitable for longterm goals. The value appreciation for land and buildings is dependent on several factors that include the location of the property and the inflation rate. With a minimum of about 5% annual ROI, property investments can yield as high as 15%-30% ROI within 12 months.
The best plan for an investor with high investment capital is Buybacks. In BUYBACKS, an investor offers a real estate company a certain amount of money for 12 months in exchange for properties worth of that amount in collateral for the duration of the agreement. A certain percentage is agreed upon between the two parties as the interest rate to be paid back to the investor in addition to the original capital invested. The other better options for property investment include purchasing land and houses.
As good as an investment in treasury bills and real estate sound, they both have risk factors. Unlike treasury bills that have a fixed interest rate and might not be generally acceptable due to some religious views on interest-based investments, real estate offers a more flexible return rate, and there’s no limit to how much profit an investor can make on a single property deal.
A significant factor that affects both treasury bills and real estate is inflation. While inflation might devalue your original investing capital in Treasury bills and ultimately reduce your return rate, It is usually the opposite for real estate. It means that the cost of apartments will increase, which translates to more money for a landlord.
Another essential factor to consider is government policy. Before investing in anything, it is essential to factor in a change of government and the likelihood of policy change. Government policies can have a crippling effect on real estate investors if the government decides to expand roads or construct public structures. The best safety precaution for real estate investments is to do business with a standard real estate company to prevent getting scammed and also to avoid the usual family disputes that are mostly attached to buying properties from independent sellers in Nigeria.
Longterm investments are best made in real estate, and real estate investment plans are best done with registered property companies in Nigeria. Invest wisely, invest in real estate, and most importantly, invest with Dradrock Real Estate Limited.