There is always a better opportunity in between two comparable opportunities. For instance, comparing the work from home and the office job.
First, your presence will be needed in that particular office for the number of days deemed. Talking about time, you know what this means, if you are to resume work by 8:AM, preparations should have started an hour earlier. That is a minus one hour daily, I talked about compounding time and how it can add up to boost you and yes, your finances.
Another thing to still consider is expenses; you will have to pay yourself to and fro. Even if you will have to walk down there, it is still an expense on your side. You will have to consider it takes time and energy to walk to and fro (time is an expense). You will also have to feed in the process, it would have been much better or should I say affordable if you ate what's in the house. Having to depend on junk food and eateries means you have to spend at their own term.
At the end of the year if you want to calculate the growth between a work from home personnel and an office worker who are in the same salary/payment brackets, you will see the former has a higher chance of a good returns on investment. Ok, I was just citing a fast example here. My concern will be on a market that I have divided into two because of it huge differences in returns.
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It is not going to be that financial market discussion but a solid investment environment. The real estate sector is and will continue to be a boomer. First we have to understand the multiplication process in humanity. Adding to that, technology and urbanization is becoming sought after.
Every village wants to become a town and so does every town want to also turn to a city and it goes on. At least I can attest to this from my neighborhood, those who are smart in the real estate area are making good returns on investments.
Nevertheless, there are those who are making far better than others even when it seems they are investing less. Real estate is an industry that requires capital to start. Adding to that, you will learn to exercise patience, a good return on investment here is measured in years.
Some have had to wait five years or more to even get their investment capital first. It has been one thing I have spotted after I was been enlighten by a wise investor.
His idea was, if you want to enter into real estate don't invest in living house/apartments but rather leased out shops or mostly self contents. It was today that I was heading out that I saw an example of what he meant. There is this house that was built as a big living apartment around my area. I think that house should have been built four or five years ago.
A two storey building that has six two bedroom flats I guess. You should imagine how much was used to build that house, paint it, fence it and put so many facilities to stand out. So how much will a tenant be paying yearly.
I had someone who once lived there and I failed to ask him by then. He later moved out to his apartment. But from my class analysis I feel he must have paid around N1.5 million to N2 million. Ok, let's even keep it at N3 million annually. How much will be the total revenue for that building in a year?
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We are talking of N18 million in a building that should have cost it's owner $100 million plus to build. He will have to exercise patience for close to a decade.
You have to consider maintenance. As I just passed, the beauty of that building is no longer really seen, the painting has faded and the Windows have shown worn out signs. How about the inside then I assume. The reverse would have been the case for a leased out store or a self contents.
Still passing along the same way I saw exactly such a building. This time the owner divided the entire house into self contents and gave the downstairs for leased out stores. You should imagine how much he will be making yearly from a two storey building.
His chances of getting out his investment capital is higher and faster. Maybe I should TRY and make this analysis more clearer. A tenant will agree to easily pay N350,000 for a self contents (a room, toilet plus kitchen) rather than pay N420,000 for one bedroom flat or even N500,000 for two bedrooms in the same building. It means that if a two bedroom were to be converted to a self contents its owner could have likely seen over a million naira in one year.
To conclude, let me add, how about stores, a good location store is very worth it. There is no much expenses needed to build out a store. It is ALL about a space for someone to do business with.
The tenant will likely arrange its exterior and interior as he/she sees fit. It is one of those real estate ideas I have jotted down so that anytime I am opportune to enter this industry I will know exactly where to hit. A good investment also entails spending less to get more in a shrinkable period of time. This is financial intelligence.
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