Understanding fundamentals of real estate investment
When real estate professionals gathered recently for this year’s edition of Finer Wealth Series in an Ikoyi area of Lagos, top on the agenda was how to get millennials onto the property ladder by making them understand the fundamentals of investing in real estate as a viable asset class.
The Finer Wealth Series is a real estate investment and wealth initiative launched by Fine and Country a couple of years ago aimed to enlighten, encourage and equip more female investors get onto the property ladder individually and collectively to leverage the power of numbers.
This year’s edition which had as theme, ‘Building Blocks: Understanding the Fundamentals of Real Estate Investments’, focused on engaging and enlightening younger female investors and their families on practical knowledge of investing in residential property.
Seasoned professionals who spoke and made lasting impressions on the young audience at the event included Abigail Aneke, former United Bank for Africa (UBA) executive director, Subu Giwa-Amu, the MD/CEO, FBN Mortgage, and the host, Udo Okonjo, CEO of Fine & Country. Each shared her real estate investment story that caused the mentality of their audience to undergo a major overhaul.
Joy Ehonwa, a Lagos based writer and blogger, was particularly impressed by her experience at the event, disclosing her surprise when she got the invitation to attend a real estate event which, she thought, was not for her as “I’m not wealthy yet, not by a long shot. Editors don’t earn much, and writers are paid even less”.
She reasoned however that her client who invited her to the event might have seen into her future and that she was about to come into money; “after all, investing in real estate is for rich, financially free people”. She therefore gladly went, eager to learn something she could use in the not-so-near future.
Ehonwa learnt at the seminar that she had been wrong because real estate isn’t just for the rich and established; it is also for her, a young woman in her 30s trying to build a career and raise a family. “Real estate is for you, too. And we can start now”, she enthused.
She disclosed that her mentality underwent a major overhaul after listening to the professionals share their real estate stories and experiences. “I cannot possibly share every single thing I learnt at this event, but there are just a few priceless nuggets that I must let others know”, she volunteered.
According to her, “the starting point for anyone who wants to invest in real estate is considering it and you don’t need money in your pocket to do that. Being bold enough to consider it is the foundation; this means that it is possible to invest in real estate without money”.
Udo Okonjo told the story of how a book titled ‘Nothing Down’ taught her this and changed her outlook, leading her to earn $100,000 on a single investment 18 years ago, without her putting any money down.
She advised that anybody who wants to finance his first investment can start saving for it right away, saying, “this meant the most to me as a young person who had never invested in real estate before. Treasury bills were recommended amongst other low risk investments that can help you multiply your money. I already knew that saving towards a goal makes it easier and more enjoyable, but whereas I thought real estate investment too lofty a goal for me, I no longer think so”.
Another advice for prospective investors is that instead of thinking affordability they should think collaboration and as Okonjo put it, “you don’t have to invest in real estate alone, or even save up for the investment all by yourself. People come together to acquire property all the time.
“Even if you don’t have any money now, check out this scenario: you and nine other women save N100,000 every month. In a year, your group would be able to afford property worth 12 million that none of you can afford individually. And you already know that even if all you do is buy land and sit on it for a few years, it will appreciate and you’ll all be richer for it when you offload and share profits. This is what Finer Wealth Circles are about”, she said.
Okonjo also pointed out that money could be easily made from research and the first step to making money in real estate is research is to “know your location and ask lots and lots of questions”.
She noted that an unsuccessful first venture need not mean failure, explaining that though she is now an incredibly successful real estate investor, her first investment was a disaster. According to her, “such a thing can only be termed failure when you don’t get up, unpack it, and learn from it. Understand that you will make mistakes, even when you become astute. Learn to forgive yourself”, she advised.
Ehonwa came away from the seminar feeling wealthier than she ever had, even though her account balance was exactly the same. “I may not be able to buy land right now, but I’m no longer ignoring real estate broadcast messages and adverts”, she said, adding, “the possibilities are endless if you simply open your mind to the fact that you, too, can invest in real estate. Once that can happen in your mind, it can happen in your life”.
CHUKA UROKO