Other Investing Opportunities For Kenyans”As he thinketh in his heart so is he”Investing is something that everyone who desires to become wealthy needs to do. It is not an option for such people. In my article The First Investment Everybody in Kenya Needs to Make, I stress that investing in yourself is the greatest favor one can do to themselves because when you are empowered the sky is the limit for you.
Investing in yourself can enable you to get returns from royalties from books, songs, publications or other original works that you have created. You can also get Patent royalties for you inventions, get income from advertisements in your blog or website or from your pension plan.
Investment Opportunities For Kenyans
In Kenya when we think of investing in business we only think we can only invest in our own business. That does not have to be the case. You also can invest in other existing businesses that you believe in. Employed people are always wondering which business they can start on the side to double their incomes. You do not have to reinvent the wheel.
Look for a business that you relates in what you believe in or where you think there is a great demand or will do well in a few years to come. Investing in such a venture can get you ownership of a small percentage of the company. This will mean you will not be involved in the day to day running of the business but you have a second source of income without the hustle of running a new business.
You have now joined the league of the wealthy and can now be called a venture capitalist. You are investing in other businesses. You can invest as many businesses as your money allows and have as many sources of income. Your investment could be as little as Kshs 20,000, it depends on the kind of business. Ofcourse you need to do your due diligence before engaging.
Investing in the Real Estate
Investing in the real estate is a booming business in the whole world mostly in the big towns. The population of the world has increased but the land remains a limited resource. Therefore, it is the only solution into buying a home which uses a small area and is economical. Real estate is using your money to buy a property with the intention of reselling it, leasing it or using it for personal advantage.
Investing in the real estate is in two ways. The residential real estate is the purchase of property for residence. The purchaser mostly asks for the financial assistance from the bank which gives a financial support of more than 70%. Therefore, the purchaser may not have the full ownership of the property until he or she pays the borrowed finance.
There is also investing in the commercial real estate. This investment is on properties such as offices, retail space, restaurants, warehouse and other commercial buildings that will be rent for income. The difference between investing in residential and commercial is that in the former you get a passive income on a monthly basis.
Investing in the Real Estate requires much more money than most people have and so assistance from financial institutions is always sort. This then means that one has to have a relationship with a financial institution and a large regular and reliable income and so investing in the real estate is not for everybody.
In Kenya, however, because many Kenyans realize that they would not make it on their own, they have grouped up and pool their resources together to invest in real estate. So you find women groups pooling in their money to buy land and eventually constructing houses for renting where they can get an income from
Investing in Bonds
Investing in bonds is another option. Investing in bonds can be risky because bond price’s changes now and then and the issuers can refuse to give interest as agreed. However, the bonds investment is very profitable if the bonds are doing well in the market. The best advice is therefore to invest for longer periods for such kind of investments. Below are several tips to help you make more of your bond investment.
Buy bonds from different issuers to avoid the fact that one issuer may fail to pay the interest and the principal money. For instance, buy from government, municipal, corporate and other organizations.
Buy bonds with different maturity dates. This will help you to manage the risk that comes with interest rate and also to have a regular income.
Buy a bond and keep it to maturity so that you earn interest income and the maturity face value of the bond.
Maximize your bond income by Investing in long term bonds and high yield bonds.
Manage the interest rate.
Besides having the bond, invest also in stock because it will help you to generate stable performance.
Have a future goal to invest in with the money you get from the bonds.
Investing allows your money to grow in more ways than one and increases your chances of gaining financial freedom by ensuring that your money is working for you and not you for the money.