Sure Investments to Beat Current Inflation Rates

Nigeria’s inflation rate is rising drastically and only keeps getting worse. As a result of the inflation, every part of the economy has been affected.

In April 2022, according to the CPI (Consumer Price Index), the inflation  rate of Nigeria got to 16.82% , the highest ever recorded since last year 2021.

Plus, both rural and urban inflation rose to 16.32% and 17.35% respectively in April 2022.

The only way to secure your financial health is via investments. But even this is hard because high yielding ones are difficult to find in the midst of high inflation rates.

What is the Best Investment to Beat Inflation?

REAL ESTATE

That’s pretty straightforward, but you might be wondering why we believe investing in the real estate sector is the best way to beat inflation so we’ll offer a few reasons why we think so:

1 When there’s an inflation, it affects all of the economic sectors, not leaving out the real estate sector. The difference is that, with the other sectors, it’s a bad thing to but with the real estate sector, it’s a good thing.

The reason is that real estate investments do not depreciate. When money is invested in real estate, when there’s an inflation, it appreciates instead of depreciating, which means more profit.

Many real estate experts agree on this matter. The CEO of Whiterose properties, Ayobami Kareem, for example, says that even though inflation is a negative thing for every economy, it can be a blessing in disguise in the real estate sector because of how its value will only keep appreciating. He adds that the returns can happen in a shorter than usual time as a result of inflation.

The best places to invest in right now, would be the Lagos and Abuja markets, because the Forex fluctuations become advantageous. The volatility makes it possible for you to get assets cheap, especially in markets with huge unmet demands like the middle market sector.

What are some good ways to invest in real estate in an inflation?

• Purchase distressed properties, renovate them and then rent them out. This way, you’re saving time and getting turnover faster.
• Join crowd owning deals or funding property deals
• Look to invest in international properties
• Rent discounting (Guaranteed)

The real estate market will remain profitable because the value of property keeps appreciating as a result of the margin that exists between its demand and supply; the need for both commercial and residential properties, especially in major cities keep rising.

However, you should know that during an inflation, investing still is dicey, and there are guarantees. It is true that real estate investments shield you from the erosion of value that happens during high inflation, but there are no guarantees for returns.

There are other kinds of investments that can work during an inflation, like gold, growth stocks, Savings Bonds, Crytocurrency, REITs, crude oil and even food and agriculture). These assets are also tangible, and possess fundamental values that makes their worth measure up in an inflation.

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