Investment opportunities seen in real estate, bonds, shares in 2020
In view of the continuous slump in Treasury Bill (T-Bill) yields occasioned by the stoppage of individuals and non-bank corporates from the Central Bank of Nigeria’s (CBN) Open Market Operations (OMO) auctions, a real estate advisory firm, Northcourt has called on investors to invest in real estate, shares and long-term bonds to reduce risk and realise higher returns.
Northcourt is a real estate investment solutions company that adopts a research-based approach to developing and managing property as well as providing real estate advisory services in West Africa.
Speaking at the capacity building forum of the Finance Correspondents Association of Nigeria (FICAN), on the topic “investment opportunities in 2020,” the Chief Operating Officer/ Director of Advisory, Nourtcourt Ayo Ibaro said though there is always a risk of losing money whenever one invests, there is also the need to invest wisely.
Stressing that the recurrent expenses in the retail sector is still huge, Ibaro revealed for instance that most big malls spend about N30 million in diesels per month.
According to him, the real estate sector provides a better option for investors that are looking for long-term windows to invest in, because real estate has greater chance of appreciation.
He added that land for instance was not static, which explains why it kept appreciating even during recession.
“If you have appetite for just short-term investment, then invest in shares, bonds and explore currencies because,” Ibaro advised.
He wants retail investors who have been having sleepless nights over low T-Bill yields to be careful in 2020 because the CBN and other multilateral organisations might still take certain decisions that could change every market expectations.
Regretting that the real estate sector has a lot of dead capital, Obaro argued that attention should be paid to in-occupied multi-million naira houses scattered across Nigeria, saying that the owners could pay a token every month to government.
Such amount he said, could be channelled into provision of tangible social infrastructure especially children centres, schools, hospitals, health facilities among others.
In certain cities like Port Harcourt, Ibaro said, it was the hotels, governments and churches that are top users of Land, thus crowding out entrepreneurs.
On challenges facing the sector, the real estate expert stated that costs of construction of residential houses, lack of social and affordable amenities were among them.