Afrikeen Wealth

  Real estate has long been considered a cornerstone of wealth-building, however, direct property ownership is capital-intensive and time-consuming. Real Estate Investment Trusts (REITs) offer a simpler way that is more accessible to invest in real estate. Allow me to provide a detailed understanding of REITs, by covering what they are, the different types available, their benefits and risks, and how to start a REITs investment. What Are REITs and How Do They Work? Real Estate Investment Trusts (REITs) are companies that own, operate, or finance income-generating real estate projects. They allow investors to pool their money to purchase and manage a considerable portfolio of properties or real estate-related assets without owning the properties directly. How REITs Work Income Generation: REITs generate revenue through rental income from properties or interest from providing real estate loans. Income Distribution: REITs must distribute at least 90% of their taxable income to...

Interest rates movements have a major influence on investment performance. Understanding how they work can help you make informed decisions since rates fluctuate. In this article, we’ll explore how interest rates affect different types of investments, ways to mitigate related risks, and strategies for managing your portfolio when rates change. How Interest Rates Affect Different Investments Bonds: When interest rates rise, bond prices usually fall since newly issued bonds offer higher yields which makes older bonds less attractive. Conversely, bond values often increase when rates drop, making them appealing to investors seeking capital appreciation. Stocks: Interest rates affect stock prices by influencing borrowing costs and consumer spending. Borrowing becomes more expensive for businesses when rates rise which reduces profitability. Growth stocks, in particular, can be more sensitive to rate increases, while dividend stocks may provi...