How Safe is Your Investment

An investor understands that the task their money embarks on has the end goal of giving more than a decent return. Diversification is one of the few things that, when done right, hand the investor a chance to make it big.
There are many asset classes, but real estate has proven solid in many portfolios. However, the affordability of real estate has been subjective, with only so many people able to acquire and even fewer able to diversify it.
Globally, property is the most common form of investment. But where are the funds to trade in such a risky and expensive market? And how can we afford to diversify our assets when the solutions are, quite ironically, the problem?
Diversification is a strategy for reducing risk, and it is one you can use when you invest in real estate. Diversifying means having different types of investments so that if one investment loses money, you do not lose everything. For example, let us say you purchase an apartment worth 30 million shillings that gives you a monthly rental income of 100 thousand shillings. Not bad! But there are many factors to consider in such an instance. You will have to find tenants and deal with the problems of being a landlord: rent, water, and whatever else. If your tenants move out and you do not get new ones, this does not give you the expected returns—this is putting all your eggs in one basket!
You can identify a real estate company that will deliver several options that cost the same amount. For example, for 30 million shillings, you can get 12 small apartments (each 1.8M) and have a large chunk of change left over.
You can identify a real estate company that will deliver several options for the same amount, such as 12 studios for about 30M, each 1.8M (and have some change leftover). These studios can be in different locations according to the investor’s preference, are a passive investment, and spread risk evenly. It is easier for one apartment to remain empty than for all five.
There are investment consultants who help you navigate the often treacherous field of investment choices. They walk the investment journey with you, provide ample information to facilitate your decision, and can even help you avoid pitfalls that may cause you to lose money.
To be financially independent, you have to invest your money wisely. The way to do that is by diversifying your portfolio so that no single loss can wipe you out. Taking losses is a part of investing this is why, it is prudent to ensure that all of your investments are well distributed so that if one company goes down, the other can offset it, and you will not lose a significant amount of money.

An investor understands that the task their money embarks on has the end goal of giving more than a decent return. Diversification is one of the few things that, when done right, hand the investor a chance to make it big.
There are many asset classes, but real estate has proven solid in many portfolios. However, the affordability of real estate has been subjective, with only so many people able to acquire and even fewer able to diversify it.
Globally, property is the most common form of investment. But where are the funds to trade in such a risky and expensive market? And how can we afford to diversify our assets when the solutions are, quite ironically, the problem?
Diversification is a strategy for reducing risk, and it is one you can use when you invest in real estate. Diversifying means having different types of investments so that if one investment loses money, you do not lose everything. For example, let us say you purchase an apartment worth 30 million shillings that gives you a monthly rental income of 100 thousand shillings. Not bad! But there are many factors to consider in such an instance. You will have to find tenants and deal with the problems of being a landlord: rent, water, and whatever else. If your tenants move out and you do not get new ones, this does not give you the expected returns—this is putting all your eggs in one basket!
You can identify a real estate company that will deliver several options that cost the same amount. For example, for 30 million shillings, you can get 12 small apartments (each 1.8M) and have a large chunk of change left over.
You can identify a real estate company that will deliver several options for the same amount, such as 12 studios for about 30M, each 1.8M (and have some change leftover). These studios can be in different locations according to the investor’s preference, are a passive investment, and spread risk evenly. It is easier for one apartment to remain empty than for all five.
There are investment consultants who help you navigate the often treacherous field of investment choices. They walk the investment journey with you, provide ample information to facilitate your decision, and can even help you avoid pitfalls that may cause you to lose money.
To be financially independent, you have to invest your money wisely. The way to do that is by diversifying your portfolio so that no single loss can wipe you out. Taking losses is a part of investing this is why, it is prudent to ensure that all of your investments are well distributed so that if one company goes down, the other can offset it, and you will not lose a significant amount of money.

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