JMMB Elevate 4.0: Real Estate Investing, A Real Option For Everyone 

JMMB Elevate 4.0 virtual event brought the three-day long, financial empowerment series to a close recently with its panel discussion titled “Affordable Investment Opportunities in Real Estate.” 

The panellists, Peter Thompson,  group client investment manager at JMMB and Howard Johnson Jr., CEO and Broker at the Howard Johnson Realty Group alongside moderated by TEDx speaker and podcaster Terri-Karelle Reid dispelled the myth that real estate investing is only for the rich, but in fact accessible to ordinary Jamaicans.

One of the best moves a person can make with their money is to invest in a proven market, and real estate certainly has proven that it can generate significant income for those who invest in it. Thompson notes real estate is one of the best avenues for investment as it typically outperforms inflation, which is key. Adding, the Jamaican housing market remains resilient, despite a struggling economy caused by the COVID-19 pandemic, and there is no expectation that this trend will change. 

“In your basket of investment assets, you need to have some real estate. Whether that’s a small apartment, whether that’s an office space, whether it’s a commercial building, there’s money to be made in real estate, not only as an investment for the long-term but also income generating real estate (through rental income). You can also invest in ‘raw’ land. It’s a broad asset class,” outlined Johnson.

Recognizing that ordinary Jamaicans interested in investing in real estate may not have substantial capital,  Thompson suggested these individuals with less capital outlay can pool those limited financial resources.

“. There are real estate companies listed on the stock exchange, (like Kingston Properties (KPREIT)) whose sole purpose is investing in real estate. You can buy the shares in those companies and they will then talk to Howard (for example), and invest in different properties on your behalf.” By being a shareholder in one of these companies, your portfolio will have real estate exposure.  

“The other option (to buying real estate directly) is unit trusts or mutual funds. Those pooled (assets) are a little bit different in that they are not listed on a stock exchange. They’re really held by a trustee and you invest through one of the brokers,” who manage your portfolio and invest in real estate on your behalf. For example, you can invest at JMMB through our unit trust fund (JMMB Optimum Capital Fund).   

“With as little as $20,000, you can get exposure to a pool of real estate assets,” Thompson said. “A lot of the commercial buildings you see in New Kingston, you walk past them, you probably own a little piece of one, because it is held by pooling people’s money, buying those properties and then renting them to businesses. It’s an excellent model – the business wins and investors win.”

Additionally, unit trusts and mutual funds invested in real estate, have the advantage of an easy sale, should it become necessary, and none of the hassle associated with being a landlord. “In the event that yuh buck yuh toe (have an emergency), and you want to actually pick yourself up and reset, you can get the money out of the mutual fund or the unit trust, and the good thing about it is that the value you have built up over time, that’s the profit at which you’ll be able to come out,” shared the investment manager.

Johnson in ending on an optimistic note said, “I know investing and buying your first home might be daunting. A lot of young people say, ‘I cyaan afford it, ah rich people ting dat.’ But it’s just putting your mind to it and working towards it (consistently).” Karelle-Reid echoed similar sentiments, as she urged individuals to “stay in their lane” and not get caught up with the social media hype and feel forced to ‘keep up with the Jones.’ Instead, start investing in real estate with the thousands or millions you have with the financial experts and/or realtor, was the word of advice shared by the panel.  

JMMB Elevate 4.0 partnered with Express Fitness, Domino’s Pizza, WATA, CranWATA, Live Simple Beauty Products, and Bresheh, to provide opportunities for the hundreds of participants to win giveaways over the three-day event.