Why you should invest 50-70 percent of your money in real estate if you want to achieve financial independence

When one mentions Real Estate Business, he simply means purchasing/acquiring land and deciding how to use it.

One can decide to buy Land, leave it to appreciate over time and then resell it; lease it; or develop it by building rental houses, set up a farm, etc.

Although it’s regarded as an investment that doesn’t maximize returns quickly, real estates is a defensive passive income investment with minimum risks if the investor carries out proper due diligence.
Warren Buffett once said:- “Risk comes from not knowing what you’re doing.”

Infact – Andrew Carnegie once said; “Ninety percent of all millionaires become so through owning real estate.” And then a – Hebrew Proverb that states;
“He is not a full man who does not own a piece of land.”

So there are million reasons why every person must have a percentage of his income in the Real Estates Business;

1. STATIC SURFACE:
The size of surface remains constant yet the size of world population explodes every year. So there shall always be demand for scarce and static land this making land very expensive.
“Buy land, they aren’t making anymore of it.” – Mark Twain

2. APPRECIATION:
Real Estates don’t depreciate in value. Prices will always rise due to the long run due to the limited amount available. Everyone wants to own it but not everyone can.
“Everyone wants a piece of land. It’s the only sure investment. It can never depreciate like a car or washing machine. Land will only double its value in ten years.” – Sam Shepard

3. HOUSING DEFICIT:
There’s a high registered housing crisis/deficit which gives investors an opportunity to grab. Statistics clearly show that about 400 Million people in Africa will be living urban centres by 2050. In Kampala-Uganda, about 80% people are tenants.

4. NO SKILLS REQUIRED:
This field requires limited skills to invest and manage. All you need is to carryout due diligence before buying land, plot or property.
“We don’t have to be smarter than the rest. We have to be more disciplined than the rest.” – Warren Buffett

5. LITTLE CAPITAL INVESTMENT:
The size of capital investment is determined by the size or value of the property. So it doesn’t necessarily mean that you should have alot of money to start. Although buying land will require money, it’s a process you can embark on slowly and achieve it in a short time. “You can start saving for it now”

6. PASSIVE INCOME:
Rental income is semi passive though can be made completely passive if you work with property management companies. Once you own a property and fully rent it out, you’re ready to get money without pain. So the investment offers financial smartness.
“Landlords grow rich in their sleep.” – John Stuart Mill

7. LEVERAGE:
Real Estates is one of the easiest assets to leverage and create generational wealth with. You can obtain a loan by mortgage your property and use income from rental houses to pay back the loan.

Remember:
“……to invest in housing, you will first need land; plan to own a piece of land today”

Written By; Ssalongo Ssali – Financial Therapist
WhatsApp +256779164810
Email [email protected]

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