5 Investment Opportunities to Venture into in 2023

After the year 2022, that had bouts of inflation and rapidly rising interest rates, investors reeling. With the new year comes new possibilities and another opportunity to invest in new ways that are likely to deliver higher returns.

Considering investment is key as it can provide you with another source of income, fund your retirement or even get you out of a financial craze.

The decision on where to invest your money should be based on your financial position, your understanding and knowledge of the market, having future goals or targets in mind, and the consideration of all risk factors that come along with the investment opportunity. 

The following is a list of investment opportunities that you may consider venturing into in 2023:

1. Real Estate

Real estate investment is often an excellent option. Kenya’s real estate industry has tremendously grown over the years making the market quite lucrative and competitive. With the rapid increase in population, the demand for housing units and residential property values has shot up. Whereas one may need a lot of initial money, the rewards can also be high. Proper research and due diligence are needed to ensure an investor is well-informed before making the investment.

2. Real Estate Investment Trusts (REITs)

For others, instead of investing directly by purchasing or constructing a property, one can invest in the real estate market through Real Estate Investment Trusts (REITs). One can invest in REITs with a lower sum compared to what is needed when purchasing a piece of property. The REITs shares are traded on the major stock exchanges which makes them easy to buy and sell. The buying of REITs shares involves purchasing a portfolio of properties or mortgages and not a single property. Investors can enjoy higher capital gains since REITs tend to be held for an extended period of time. You can also exit your investment depending on the term of the REITs. 

3. Stock Market

The Nairobi Stock Exchange (NSE) is where the public can invest in financial products. The financial products include Bonds, Shares, REITs, EFTs, and others. It is important to note that each financial instrument contains its own risk, therefore, detailed research is advised before investing. You can also invest in NSE through licensed stockbrokers and investment banks. The best time to buy a cheap stock is during IPO (Initial Public Offering).

4. Starting a business

Investing money in yourself is an excellent way to guarantee your own future growth and expansion. One can utilize skills, education, work experience, and unique capabilities that you have. While entrepreneurship can be challenging, it teaches one how to manage resources and diversify when your business income grows.

5. SACCO Investment

Savings and Credit Co-operative Society have enabled the Kenyan micro financial sector to grow over the years. The returns from an investment in a SACCO come in the form of dividends from interest on loans. SACCOs are governed by the SACCO bylaws which state the objectives, membership, share capital, organization structure, management, and lending regulations. Most are managed by a professional team, which reports to a committee elected by members annually. As a member of the SACCO, you can earn interest on your savings which are part of what you have borrowed, lowering your borrowing costs further. Additionally, SACCOs have lower interest rates and can help you accumulate a substantial savings base. 

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