The recent Global Economic meltdown has taught me the lesson that one should create a balance to complement stocks.
For the past two years begining late 2008, I have been neck deep in real estate investment.
These are my techniques as a salary earner with limited funds.
(i) Verify from appropriate authoriities about title documents.
(ii) Due to large funds required start with land purchase in a promising suburb with a standard layout with planned infrastructure, ie an organised environment that permits INSTALLMENTAL PAYMENT spread over several months.
(iii) Deal with reputable real estate companies that is well recognized with a large portfolio of real estate assets.
(iv) Subscribe to the kind of land that does not require immeediate development so as to give enough time to appreciate.
(vi) Subcribe to more than one plot so as to sell one and use that to start to develop the other at a future date to provide seed capital for development.
(vi) Plan to get your sub-lease title after payment and get acquainted with update and physical development of your plot.
(vii) If possibler also diversify across cities and locations.
(viii) Just like stocks have a land portfolio where you access whether to continue holding or to sale.
(ix) Befoore you decide to buy a serviced plot,
visit the site with your experts, see what you want to buy and be legally convinced after due diligence. Do not be in a hurry to take decision as there is always another opportunity.
(x) Check the grace period legally permited after payment before development. Most cases from my experience it varies from 18 to 60 months.
(xi) Confirm that you can comply with basic development required. Most cases a fence and gate and constant clearing of the land is the basic minimum.
(xii) Lisase and find out the cost of msterial and labour required for basic development so as to be well prepared ahead.
(xiii) Find out the condition and commisisions required to sale your land if you so wish at a future date as it is better to give the land to the estate company you bought from if you decide to sale.
(xiv) Give your self a minimum period of 5 years before you consider selling as by then the area would hasve been fully open an competetive with many prospective buyers just like a rising stock.
The returns on stocks is dividend while the returns on real estate is rental income.
For real estate, I am not in for rental income, mmy approach is to develop and sale, but in between some ripe plots can be sold to build on others.
I intend to complete my serviced plot portfolio holdings early 2011 and will return fully to stocks and fixed income securities.
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