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Thursday, 16 February 2012

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.

Thus said what remains is for this to be done. I do challenge you to take advantage of this avenue now and dont wait for next time or tomorrow. Once this concept is clear why wait? Procrastination is the thief of progress!



HERE IS ANOTHER INTERESTING POST;

HOW TO SELL PROPERTY IN A MONEYLESS MARKET?

 http://propertymattersnews.blogspot.com/2012/06/how-to-sell-property-in-moneyless-market.html
How do you sell a property in a moneyless or illiquid market ? This is the million dollar question in the minds of those who want cash for their investments. But how can you possibly do it? In the past five years of my real estate career I have discovered an answer and that answer is the  needs-focused marketing strategy. This strategy works because the liquidity problem creates serious competition as market players wrestle for the little cash available, so in order to survive this struggle one should be as competitive as possible through sharpening the needs-focused strategy. I will define this strategy later but for now I shall start with simple but important basics you should know first. 

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