WorldStage Newsonline– Following the continuous slump in Treasury Bill (T-Bill) yields due to the restriction of individuals and non-bank organisations from the Central Bank of Nigeria’s (CBN) Open Market Operations (OMO) auctions, a real estate advisory firm, Northcourt has advised investors to embrace real estate, shares and long term bonds in order to reduce risk and realize higher returns.
Speaking at the capacity building forum of the Finance Correspondents Association of Nigeria (FICAN), on the topic “Investment Opportunities in 2020,” Mr. Ayo Ibaro the Chief Operating Officer/ Director of Advisory of the firm which adopts a research-based approach to developing and managing property as well as providing real estate advisory services in West Africa, 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 that most big malls spend about N30 million in diesel 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 because land is not static, it explains why it keeps appreciating even during recession.
“If you have appetite for just short-term investment, then invest in shares, bonds and explore currencies,” Ibaro advised.
He asked retail investors who have been having sleepless nights over low T-Bill yields to be careful in 2020 because the CBN and other multilateral organizations could still take certain measures that could change every market expectations.
Regretting that the real estate sector had 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 channeled into provision of tangible social infrastructure especially children centers, schools, hospitals, health facilities among others.
In certain cities like Port Harcourt, Ibaro said hotels, governments and churches were top users of land, thus crowding out entrepreneurs.
The real estate expertlisted cost of construction of residential houses, lack of social and affordable amenities among challenges facing the sector.