REAL ESTATE INVESTING WITH SMALL SAVINGS - WHAT THE DOCTOR HAS PRESCRIBED !
"Local Investors' Dilemma" screamed the headlines of the NewsDay's business section on Tuesday, January 31. This story by Victoria Mtomba reported how popular investments like the stock and money markets are failling to give meaningful returns for small investors in Zimbabwe. On one hand the stock market is haunted by economy-wide liquidity constraints and indigenisation worries that are believed to cause the erosion of value as shares underperform. On the other the investment institutions are demanding a minimum investment requirement of US$10 000.00 which is too much for small investors . So how can these investors invest? What can be done about this ?
Indeed, something should be done about it, because it is important to help and support these small investors since such noble efforts have been linked to increased personal and national wealth creation in more developed countries. In USA for example, the level of poverty is low because there are more micro, small and medium sized enterprises than in many countries and these are deliberately nurtured hence they contribute immensely to GDP and employment. Like what economist John Robertson was quoted saying in the NewsDay the way forward was to have solutions centralized on " small investors combine their skills, forming, partnerships and producing a product that they can sell."
One of the ways of forming these partnerships as I alluded to in my article, MAKING MONEY THROUGH REAL ESTATE INVESTING WITH SMALL SAVINGS, is when people can combine resources and invest in the lucrate property development sector. Real estate has very low risk and unprecedented demand especially in highly sought after areas. Its possible that these small investors can share a return on combined capital invested of over 10% within a reasonable period of time.
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