It's 2016, Have You Invested Yet?

Michael, 34, has a good job, an ok 3bedroom apartment in the Surulere part of Lagos Mainland but his car is always having an appointment with the mechanic for repairs of one issue or the other which results sometimes in unplanned expenses. He has to get around to work or outings and therefore has no choice but to keep repairing the car. Then he started thinking since he could afford it, he should buy another car and even move from Lagos Mainland to Lagos Island partially because his job is in Victoria Island and partially because he felt that his ok apartment wasn't what he really wanted. Over drinks with some buddies, he shared these thoughts and all of them agreed and said it was all a good idea and that his comfort was important. Well, all of them agreed with him expect Jay. Jay thought the idea of moving and buying a new car was fantastic and that it would no doubt make him happy and feel more of a 'Lagos Big Boy', but that how about he invests in a Land instead. That is, buy a plot of land or even 2. Michael said it was a good idea but that he wasn't ready for buying a land now.

Seriously??? LOL!

Alot of people would respond like Michael because they don't see the potential in acquiring a land property.

Let me break down something most people don't know. There's what's called Asset and Liabilities. An Asset is an investment that will provide future economic and financial benefits while a Liability is an investment that will present future obligations. Examples of an Asset are Land, Business, etc. While examples of Liabilities are cars, gadgets, electronic, etc. Assets appreciate with time, which means that a few years from when an asset was invested in, the price goes up, so if you choose to resell, you gain. Liabilities on the other hand results in you spending more money either to maintain or fix and then if or when you wanna resell, you end up getting less than half of the actual value which results in you losing.

I always said that when I had enough money to buy a car, I would rather endure a couple more years squeezing uncomfortably in public transport and use that money to invest in a Land. I mean, I would buy a Land first before buying a car. Why this choice? Because, if I buy a car I still have to fuel it, get it to the carwash, do a quarterly maintenance on it, be very careful on the road so I don't get the car dented or bashed by one reckless driver or motorist, etc. On the other hand, if I buy a land, it will be there appreciating year by year. I could choose to rent it out pending when I'm ready to build on it or even resell it. Plus, with the current rise in profit in the real estate industry, even people who have lands are still buying more lands.

I'm not saying you shouldn't be comfortable now with your car or tasteful apartment in a high brow area in Lekki. I'm saying as a young individual, an investment, especially in a land, isn't a bad idea. You should secure your future and that of your future family so you can have investments to fall back on when you choose to retire.