The Covid-19 pandemic and global shutdown have undoubtedly hit the investment world hard, with many companies seeing a sharp decline in stock prices in its aftermath. In 2022 alone, major companies like Tesla, Meta, Amazon, and Apple all experienced losses in market capitalization. Tesla lost around 70% of its stock value, Meta stock saw a drop of about 65%, and tech giants Amazon and Apple each lost a staggering $800 bn in market cap.
The market volatility has highlighted the need for investors to exercise caution and strategic thinking when it comes to investing. This is especially important for people in developing countries, where investing presents an opportunity to generate passive income and build wealth. In many African countries, where the average daily expenditure does not exceed $5 a day, the need for passive income is even more pressing.
The cryptocurrency market, well-known for its volatility, also experienced an especially turbulent year in 2022. Popular coins such as Bitcoin and Ethereum saw a massive drop in their value, with each dropping by over 60%. This significant decline caught many investors off-guard, leading to billions of dollars of losses across the crypto industry and underscoring the inherent risk of such a speculative asset class.
Yet even traditionally stable investments like bonds fared no better, with many experts calling 2022 a “historically awful year” for the bond market.
There is no denying that people are looking for ways to invest their money, and Africa’s fast-paced tech ecosystem has grown to accommodate this need. Investment platforms are cropping up and accruing large amounts of users on their platforms.
But the current economic downturn has dealt a blow to individual investors, many of whom are now forced to seek options they believe will offer them both transparency and stability. Startups like Keble. co are rushing to fill this space.
For those still seeking to invest their money in spite of the heavy losses of last year, the question remains of where that money will have the safest chance of yielding returns. The simple answer? Real estate.
Real estate has long been recognised as one of the more stable forms of investment. Thanks to urbanization, the tangible nature of housing, and an ever-increasing global population, real estate can withstand the worst of economic downturns and inflation, providing a stable income stream and long-term appreciation.
Despite the aforementioned economic challenges, Nigeria’s real estate market has shown its mettle, with an impressive 18% year-on-year growth in the third quarter of 2022. With the increasing demand for housing in Nigeria and the government’s commitment to developing the sector, real estate investment opportunities in the country are expected to grow.
Furthermore, as the Nigerian economy continues to expand, the contribution of real estate to the nation’s GDP is expected to rise, potentially reaching levels similar to that of leading economies like the US and China, where real estate contributes 13% and 14% respectively to their GDP.
Keble is a real estate platform that brings this stability and profitability to the doorstep of Africans by allowing them to own real estate fractionally. They offer a unique investment opportunity that allows users to invest in properties for as low as $10, making it accessible to a wider range of individuals.
By breaking down the cost of property into smaller, more affordable units, Keble enables investors to participate in lucrative real estate deals with less financial commitment, allowing everyday people to benefit from the security and growth potential of the asset class.
At Keble, users have access to a wide range of carefully selected real estate properties, each offering its unique investment potential. The platform provides the freedom to browse and select the property that best aligns with their investment goals.
As part-owners of the property, users will benefit from a share of its value appreciation as it matures, and they even have the freedom to take it out at any point they desire.
The effects of inflation are a significant concern for investors worldwide, but it poses a particular threat to African investors. It can erode the already abysmal purchasing power of money over time, making it challenging for investors to maintain the real value of their wealth. Rental income and property values are generally linked to inflation and can be adjusted to keep pace with changes in the cost of living. For this reason, real estate has often been regarded as a good hedge against inflation.
Keble’s offerings, therefore, provide a unique opportunity for Africans to invest in and benefit from the protection real estate presents against inflation and economic volatility.
In addition, the startup’s dollar-based investment approach offers another layer of stability. This approach ensures that an unpredictable currency does not depreciate the value of users’ investments. With Keble, investors can confidently invest in real estate, bank on the transparency and security of their assets, and watch their money grow over time.
A significant advantage of investing with the platform is the transparency they provide. With their experience in the real estate market and their relationship with developers worldwide, investors can access detailed information about a property, its location, and its progress. Keble’s partnerships provide a level of security hard to come by on other platforms, one that ensures its customers get the full value out of their investments.
The goal with Keble’s fractional real estate framework is not to stop other forms of investment, but to allow you to diversify your portfolio–a necessary aspect of wealth building. When one thinks about the $237 bn loss incurred overnight by Meta last February, the unprecedented FTX crash that sent the crypto industry into a tailspin or even more recently the $100bn drop in Alphabet stock caused by an error, the prospect of having a diversified portfolio puts you at ease.
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