Wealth Migrate - Afrikan Heroes

Special Report: Why crisis investing will cost you but treading carefully can get you an overseas passport

July 25, 2021

Research has shown that as many as 80% of South Africans who invest offshore lose money, and one of the main reasons for this is crisis investing. When crises hit, the instinct of the novice investor is to act quickly and move their affected assets without much consideration to the return on investment (ROI), but when it comes to investing, this can have disastrous consequences.

Research has shown that as many as 80% of South Africans who invest offshore lose money, and one of the main reasons for this is crisis investing. No one makes good decisions when they are stressed and emotional; the best investment decisions are made when you are calm and able to take the time to do your homework.

“The two most important things to successfully preserving and growing your wealth, especially during times of volatility, are to have access to (1) the right information and (2) the right partners. With mature FinTech investment platforms, you can now get access to the best investment partners worldwide and have access to trustworthy and transparent market information. Both enable you to make educated and informed decisions on your investments,” says Scott Picken, CEO of online investment platform Wealth Migrate.

Mature FinTech investment platforms like Wealth Migrate disrupt the industry by cutting out the middlemen (also known as brokers), which means costs to the individual investor fall and their ROIs rise. About 20 years ago, you needed at least $100,000 to invest in one opportunity offshore – just to cover the deposit. Today, you can invest that same $100,000 in 10 different opportunities at $10,000 each – ensuring your eggs are not all in one basket, thus reducing your risk.

Investing offshore gives people greater freedom in the choices they make for themselves and their families, but it can also give you access to securing another passport. One way to do this is to buy property in another country – for example, Portugal, the US, Mauritius or Panama – giving you access to a passport. But you will need at least $300,000 in cash, and all your capital will be tied up in that one asset for years.

“A far smarter way to do this is to follow my uncle who was based in Zimbabwe. In 1980 he started investing in First World assets and earning a First World income. He grew his diversified asset base and became a Global Citizen. In 2003 he had the freedom to move with his family to Australia,” says Picken.

The technology available today via FinTech investment platforms makes it possible to become a Global Citizen, and with platforms like Wealth Migrate, your journey can begin with a simple investment of only $100.

When life becomes chaotic and frightening it is easy to make hasty decisions that you come to regret. Rather follow the lead of the wealthiest people – make good, solid decisions based on thorough research and get trustworthy partners in your corner.

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry

How Different Property Classes Coped With the Pandemic

March 27, 2021

The property market has undergone huge changes during 2020 as a result of the Covid-19 pandemic, but not all sectors have had the same experience.

As the year comes to a close, it is useful to have a look at how different asset classes have been affected and what lies ahead for them in the New Year.

Scott Picken, CEO of online investment portal Wealth Migrate

Industrial
The one sector of the economy that benefited from lockdown has been online retail outlets and this has also been good news for the manufacturers that supply them. An interesting twist to this is that some malls, which have battled, could be turned into distribution centres for e-tailers.

Hospitality
The hospitality industry was one of the hardest hit during lockdown as planes were grounded and borders closed. A slow recovery is discernible, but research puts a return to 2019 levels in only 2024.

Office
Remote working was very nearly the death of the office, in fact, office buildings as an asset class have been the worst affected. Pay close attention as some companies may make remote working a permanent feature for at least some of their workers.

Multi-family
The stand-out best-performer of 2020 has been multifamily apartments. In the US, strong occupancy and collection rates, along with stimulus cheques and savings have boosted the asset class. Affordable financing deals have also driven up demand for multi-family offering.

Student housing
Student housing is in demand as top-tier campuses absorb students from other schools. Also, as social distancing demands that on-campus housing reduce its occupancy levels the need for off-campus housing is on the rise (especially for buildings within 1.5km of campus).

Medical office
Any medical building with tenants that offer critical care and procedures are worth considering, but those that offer optional care and procedures are less of a sure bet. Location and solid tenants, with clear longevity, are crucial when deciding to invest in these buildings, advises Scott Picken, CEO of online investment portal Wealth Migrate.

Retail
Consumer behaviour has been changed, possibly irrevocably, so if you are looking at a retail asset make sure it has a strong supermarket as an anchor tenant along with two to three other good, solid tenants that will bring foot traffic to the shopping centre, which in turn will attract other good tenants.

Senior housing
Researchers expect there to be a significant demand for senior housing in four years’ time as the Baby Boomers start entering their 80s, this demand will then increase each year. When it comes to investing in senior housing, a good partner is always a must, so choose carefully.

Self-storage
An often-forgotten property class is self-storage, which is in demand, especially when it offers amenities such as heating, ventilation and air conditioning (HVAC) and good security. The needs and expectations of self-storage clients are quite exacting, so, again, a good partner can ensure you make a success of this.

The whole world is holding its breath as the slow roll-out of the vaccine heralds a return to normality, take note of the types of real estate you could pursue in the new year to ensure 2021 is be the beginning of fresh successes.