HOW RENTAL PROPERTY INVESTMENT SAVED MR MICHAEL’S FUTURE
As employees, we all have this special joy that flows through the veins of our body when the month is coming to a close. By this time of the month, our hands are glued to our phones, waiting earnestly for that “credit alert” message, indicating salary payment. However, any other messages that will not bring in the good news will be considered an anti-virus which has to be wiped out with immediate effect.
This kind of feeling is what Mr Michael has every month, being an employee. The 30-year old man happily married with a kid could not seem to stop perusing his phone as he impatiently waited for an important SMS from his bank.
The young man, who works in one of the biggest real estate companies in Lagos, was indecisive about what He wanted to use the salary for. He asked himself, should I use it to pay debt or change my wardrobe or invest the money in treasury bill/stock? He pondered for the last time whether to stick to his investment plans or use it for other expenses he had on his list.
READ: RENTAL PROPERTY: MAXIMIZING YOUR RETURN ON INVESTMENT
Prior to this time, Michael had gone on an excursion of research about personal finance and investing in real estate. Among the books He read include: How to Create Wealth: Investing in Real Estate by Grant Cardone; Cash Flow Forever by Jeff K. Johnson; The Millionaire Real Estate Agent by Gary Keller; The Richest Man in Babylon by George S. Clason; Rich Dad, Poor Dad by Robert Kiyosaki; The Cash Flow Landlord and Automatic Property Millionaire by Chudi Kalu etc to mention but a few.
This, of course, changed his understanding of wealth creation. Above all, He learnt his savings won’t take him to his financial dreamland but investing will.
While the measurable goal of savings is to increase his savings rate, investing is the deliberate action of deploying saved to reach a predetermined objective.
In other words, there can’t be investing without saving. He learnt that in order for him to put a stop to his meagre living and also become part of the few wealthy class in the next ten years before he retires, He has to take invest. However, with the kind of lifestyle He wanted coupled with the gigantic responsibilities saddled upon him, He’s confused as to what kind of investment He could do that would help fast-track his journey into financial independence.
The major forms of investment coming into his mind were treasury bills, stock market and mutual funds, real estate and crowdfunding. Eventually, He opt-in for treasury bills whose interest rate is 12% per annum but became discouraged due to low Return on Investment he received annually. In the same vein, the volatile and unstable nature of stock market restrained him from investing in the venture.
So, he decided to seek a better investment option. He got into real estate investing after coming in contact with Middlechase Property Limited. His conviction about their integrity, transparency and timely delivery of their projects. By using his savings, he acquired some units of rental property from the company and with this smart move, he knew that in a little time, he wouldn’t be bothered about financial instability as these properties would generate consistent cash flow for him.
