18/07/2022
*WHICH IS BETTER ?*
*INVESTING IN REAL ESTATE OR SAVING IN BANK*
Some feel that saving money in the bank is a good strategy to building wealth. Though, it is very good to save, it is not a good wealth building strategy. The gains of real estate investment far outweigh that of saving in the bank for the following reasons:
*Currency always diminish in value while real estate appreciates:*
The purchasing power of money continually diminishes. The things One million naira could buy five years ago are not the same things it can buy today. However, real estate always appreciates. If you buy a plot of land in a good location, take effective possession and perfect necessary
documentation today, in five years’ time, you can sell it for up to 10× or more of the price you bought it.
*Return on savings is infinitesimal while returns on real estate investments are huge:*
When you save your money in the bank or do a fixed deposit, your returns on investment are usually single digit per annum. Conversely, based on the rate of development in the area you purchase your landed property or building, the return on investment are often huge. If you buy a house for example and let it out to tenants, between a decade to two, you will have recovered your investment and you will continue to make profit for the rest of your life.