Abraham Maslow’s hierarchy divides human needs into three (3) broad categories. The basic needs category describes safety and physiological needs such as food, water, and rest. The second category describes our need for esteem, love and belonging. These are psychological needs. The final category describes self-fulfilment and self-actualization needs.
I like to think that human needs as presented in these three broad categories are first emotional. Remember that saying about a hungry man being an angry man. Even food trigger intense emotions yet we need food to survive. Meeting these needs deliver emotional fulfilment and reward. The amazing thing is that real estate meets needs across the hierarchy from bottom up.
Let me show you how.
First, let me describe real estate.
Investopedia describes real estate as the land along with any permanent improvements attached to the land. Whether natural or man-made—including water, trees, minerals, buildings, homes, fences, and bridges. This description means that there are many ways to look at real estate. Shows how convertible it truly is.
The Basic Needs: These are also physiological needs; food, water, warmth, rest, security and safety. Food in agriculture and water is from the ground. Warmth and rest do not happen in isolation. We derive them from a subset of real estate such as a built property. Likewise, within a bounded area is where you feel safe and secure.
When you provide basic needs to your family or other people, you derive a sense of fulfilment. This is regardless of the provision being free or paid for. Sometimes you feel you have self-actualized doing this.
This is why it feels terrible when parents are unable to provide shelter for their wards. Especially when these wards are still financially vulnerable. It even feels more terrible losing your shelter when your ability to earn an income has now reduced as a result of advancement in age or other reasons.
When your basic needs are met, you are in a positive emotional state and motivated to be more productive.
The Psychological Needs: Ever wondered why some people buy houses on certain streets and neighbourhood? While there are several reasons, chief on the list is because they want to belong and remain within a certain societal class.
Psychological needs are the esteem, belonging and love needs. We crave these emotions at varying degrees and want to have them fulfilled. Real estate is a tool that is used to meet these needs. You have been using real estate to meet these needs and you do not even know it! You derive esteem or have a sense of belonging to a certain class when you occupy or use real estate in certain locations.
There is also the case of perception. Sometimes, people will only regard you based on your house or property investment location on the earth’s map. In many cases, people will only do business with you because your office has a certain address. Apart from the perks of having a Victoria Island business address, it is also to meet these psychological needs.
The Self-fulfilment Needs: Self-actualization is achieving one’s full potentials or attaining a high level of creativity. The Dangote Foundation once donated ₦1,200,000,000 worth of student accommodation to the Ahmadu Bello University, Zaria. Going by the history of the foundation’s activities, finding a deeper level of fulfilment is at the core. By that donation, he has contributed to a people-centred purpose.
While donating accommodation facility deriving a sense of fulfilment, a basic need for the students is being met using real estate. The students will be getting an education with some level of comfort. It then becomes easy to get more creative because there is now shelter besides security.
If you have not taken investing in real estate serious before now, it is high time that you begin to. It is a convertible tool that meets almost all human needs. Real estate makes being a human being possible. It delivers emotional fulfilment. It supports the essence and existence of life.
Therefore, you should pay attention to how you invest in real estate and convert it to meet your needs. Especially if you are not satisfied with the status quo or you are ambitious. Extracting optimum value from real estate does not happen by chance.
5 simple ways to be intentional about real estate investing.
- Know how you respond to real estate.
- Check what you know about real estate investing and deriving value from it.
- Be real estate investment literate. Even when you plan to just buy a home.
- Read biographies of people who have legitimately extracted value from real estate. Remember it is universally convertible.
- Have a clear and relevant goal about what you wish to achieve using real estate. Then find out how to best achieve that goal