Investing For Beginner - Free Tips For Beginning Real Estate Investing Lagos Nigeria
Let's start by asking the question . . . what is the single biggest reason why most people don't invest?
Some would say "lack of capital". As a young man or woman just beginning real estate investing, you may likely agree with people who say this.
Yes, mortgage loans will enable you increase your purchasing power. Nevertheless, you must understand that banks give real estate loans to people who have money to finance it.
What does that mean?
It means you cannot collect mortgage loan from a bank unless you already have some money to contribute. Banks call this your equity contribution.
Some banks require you to make 20 percent equity contribution while others require 30 percent equity contribution.
Let's take an example to drive the point being made by this investing for beginner guide home.
Suppose you want to buy a property valued at 6 million Naira. Suppose too that your bank requires you to make equity contribution of 20 percent of the loan amount. To qualify to collect this loan, you will first have to pay your bank 20 percent of 6 million Naira (that is, 1.2 million Naira) before your bank will give you the 6 million Naira mortgage loan you requested for.
If you do not have 1.2 million Naira to give to your bank, the bank will not approve the loan of 6 million Naira for you.
Get the point?
You need money to make money even if you're getting the extra money through a bank loan.
That is where your savings come in.
Your savings will provide the equity contribution while your bank will provide the leverage required for you to invest in real estate with an amount greater than your savings amount.
Now that you understand that, this investing for beginner guide will focus on an serious issue that prevents a lt of people from turning their dreams into reality . . . the critical factor that leaves most people beginning real estate investing stunned out of their wits.
What am I talking about?
I call it . . . Right Sizing.
Right sizing is the process of admitting your financial capability and then beginning real estate investing according to the size of your pocket and not the size of your dreams.
To illustrate, some people have dreams of buying real estate in the heart of Lagos Nigeria.
People call me and tell me I want to buy a house in Ikeja, even if it's a small bungalow. And they tell me the house should be neat, clean, and not too old. When I ask them what their budget is, they tell me 4 million Naira max.
Now, that is a dream!
Unfortunately, 4 million Naira, though big, cannot buy an old bungalow in the heart of Ikeja . . . a location where a plot of land alone goes for as high as 15 - 30 million Naira (as at the time of this writing) depending on the part of Ikeja in question.
The sad part is that some people with this kind of dream may decide not to invest in real estate until they have enough to buy property in the choice location they prefer.
Many never invest at all.
They planned to investing for retirement. But their desire for real estate beyond heir means stopped them from investing. And this 'greed' makes their retirement worse than it should be.
Take the advice of this investing for beginners guide. And the advice is . . . invest what you have while you have it. If you don't, you will lose it.
Most people who failed to invest while they had the money cannot account for how they spent the money . . . they can't find the money anymore.
. . . it's not anywhere. They've lost it to time and chance.
Invest while you have the funds even if the funds is so little that all it can buy is a plot of bare land in the outskirts of the city.
Someday, that investment may pay bills that would otherwise threaten to embarrass you big time.
Take the advice in this investing for beginner guide seriously. It could change your life for good.
This investing for beginner advice is for you if you're just beginning real estate investing or even if you're been long in property investing. Even elders make mistakes.