After years of investing in real estate in Nigeria and the United Kingdom (UK), John Ogubunka realised that his UK investments had significantly outperformed their Nigerian counterparts. The naira devaluation has resulted in rising inflation. Prices of goods and services have tripled, with headline inflation reaching 32.70% in October 2024.
Inflation is eroding the value of the Naira and reducing returns on local investments. Businesses are seeing their profits squeezed by inflation as costs rise, to lower stock prices. Investments like bonds which offer fixed interest rates are becoming less attractive because inflation is eating away at the returns. Real estate investments are considered safer because they usually yield high returns as property values often rise with population increase and development. However, due to Nigeria’s current economic state, developers are operating at a loss and so are real estate investors. Increased construction costs from importing building materials are stalling new developments and pushing up property prices. This makes it harder for the average Nigerian to invest in real estate. For those who can still invest, even if they see a nominal return, it might not be enough to keep up with inflation. Investors are spending more and barely seeing any gains. For the average Nigerian, this makes any investment practically impossible. Nobody wants to lock money away in hard economic times only for the return to be devalued by inflation.
To help tackle these challenges, John Ogubunka had the brilliant idea to democratise investing and give Nigerians the same access to foreign investment. He created PariVest, a fintech company that allows Nigerians to invest in UK real estate using Naira and earn returns in Pounds.
Hedging against local inflation with foreign investing
Investing in a country with a stable or even appreciating currency compared to one’s home country provides a double advantage for investors. Even if property values stay flat in the investment country, a favourable exchange rate can increase your returns when you convert the proceeds back to your home currency.. If property values increase, investors will get higher returns. Because the UK has a more stable economy, pound-based investments are protected from Nigeria’s high inflation and Naira devaluation. According to some reports, investors are pouring money into the European real estate industry, leading to a 20% rebound in real estate investment activity in 2024, with the UK leading the charge.
PariVest is making the thriving UK real estate market more accessible to the average Nigerian. It removes the challenges to foreign investing like currency conversion, high costs, and legal barriers. The fintech helps users protect their money from devaluation while earning a decent return in pounds or naira. Unlike most non-naira investment products that are usually dollar-denominated, PariVest is primarily a pounds investment platform that offers the unique advantage of either pounds or naira investment options.
What PariVest offers
PariVest offers both investment and savings products to suit user needs.
- Investments: Users can invest in UK real estate for fixed terms of 6, 12, or 24 months with a minimum of £10 or ₦10,000. The longer they invest, the higher the return they earn.
- Savings: The Flexi-Save product is a savings account that gives users easy access to their money whenever needed. The Target Saver product is a savings account designed to help users achieve specific financial goals with a 3-36-month timeline. Users can use this option to save for a future UK property purchase or any other financial goal.
All of PariVest’s investments are held by Futureview Asset Management Limited, a Securities and Exchange Commission (SEC) registered company.
The Future of PariVest
Looking ahead, PariVest is working towards offering more benefits to their customers. The company is building two exciting products to add to its repertoire. The first is a mortgage product to help Nigerians finance their dream of owning property in the UK. The second is introducing dollar-denominated real estate products. This will expand their services and allow users to invest in real estate in the USA.
PariVest is making it easier for Nigerians to invest in global real estate and hedge against inflation. With its secure platform, flexible investment options, and expansion plans, PariVest is a powerful tool for anyone looking to grow their wealth.
