Meristem Real Estate Advantage Portfolio: A Hedge Against Weak Naira
Nigerians are naturally exposed to fluctuation in their naira assets now. With rising inflation and weak local currency, many have become poorer than they really think they are! Think about what naira can buy years back and what the same amount can buy today.
Wait a minute; convert your annual income years back to dollars and do the same for your current income. The difference between a poor and rich man used to be access to information. Now, there is another aspect to it. Quality of information and outright application in taking an investment decision.
Every dick, tom and harry pitch investment in real estate as an option not minding the initial costs. Sorry to burst your bubble, real estate takes big money to participate meaningfully.
To be a real estate investor, you might need to have a moderately deep pocket and it also depends on the angle where you are looking at it from. At the lowest of it is land acquisition with an expectation to see double-digit appreciation – Not always.
But, the hard fact that is rarely stated is that it could take time before land appreciates to the extent that the gain would be so impressive.
It might actually take a few years before real estate investors get the so-called double return. What if you earn returns piecemeal over time? What if there are urgent needs for cash?
You force no one to buy property– so, it is not always an investment option that can readily translate to cash within a short time. That is where Meristem Securities real estate advantage portfolio becomes appealing to potential and existing investors in Nigeria.
A quick one: It is a “hard currency” denominated investment with real estate as underlying assets. That could provide double-edged sword protection against rising inflation and unstable local currency.
What is it about this real estate advantage portfolio?
According to Meristem Asset Managers, it is a British pound denominated investment, designed to offer investors the actual advantage of currency appreciation and rental income.
Through this product, asset managers said investors have the opportunity to co-own real estate and generate income via short-let rental and full-term tenancy arrangements.
The minimum investment required for a start is £2000 and multiples of £500 after the first deposit. Guess what? If you had taken a position in this, say in the last 24 months, apart from your stable earnings, you would probably be smiling reading this now!
Investment Options with Julius Alagbe. You can reach our editor for discussion, information or enquiries via [email protected] or 08076677706-07