It takes money to make money.
Someone once told me to forget about building wealth if I
wasn’t willing to take the risk of investing in long-term ventures. They are
typically two types of investments: long-term investments and short-term
investments. Each option comes with its benefits and the level of risk
involved. Typically the economy you find yourself in determines the sort of
business you should invest in.
Nigeria, for instance, is an emerging, middle-income, mixed
economy with rapidly expanding manufacturing, financial, service,
communications, technology, entertainment and real-estate sectors. Although
fairly stable, the Nigerian economy is immensely influenced by its political
stability and transference of power. Each political tenor typically comes with
new policies and in most cases hinders the furtherance of the past tenor’s
developments. In a country that typically operates like this, investing in real
estate is one of the few safe investment options that hardly succumbs to the
frequent political alterations.
Real estate is the quickest way to build wealth (not
overnight) but in a lifetime. It is largely a numbers game. Investing in
real-estate is not reserved for the financially buoyant, it’s an open playing
field that guarantees good financial returns and you can be a part of it.
Read what Pastor Paul Adeferasin, Head Pastor of the House
On The Rock Church has to say about investing in real estate in Nigeria:
10 years ago, we bought House On The Rock, an area just
under 10 acres for ₦25 million. This same area without the brick and mortar is
currently valued at ₦3 billion. In other words, we’ve created an asset base
with 10 years differential of ₦3 billion with just ₦25 million. With the fully
finished and furnished building, the value spirals to at least ₦10 billion
naira today. What about 50 years from now?
How Can You Benefit From This?
Firstly, real estate investment is a long-term venture. The
value of property appreciates with time (usually years). There are various ways
to invest in real estate, however, this article would focus on land
acquisition. The simple rule of thumb is, buy low, sell/lease high, save
profits and re-invest in acquiring more property. This is how to exponentially
grow your real-estate portfolio particularly if you’re just starting out.
Go For Land
Acquiring land gives you the opportunity to start on a small
scale, with minimal maintenance. Land can lay fallow for years and still
appreciate in value compared to a property that needs constant maintenance and
a truckload of cash. However, with acquiring lands, you need to tap into the
gift of foresight; see where the future is going and get there before the crowd
does.
Today’s most lucrative estates where once seen as far-off
and unreachable. For instance 10 years ago, the Lekki region was extensively
swampy and seemed to have low prospects of growth. At this time, the lands were
inexpensive and seemed unprofitable. 10 years down the line and a plot of land
(if available) in this area is worth millions.
What Makes Nigeria Such A Fabulous Location?
Rapid Growth Rate
As reported by Worldometers, Nigeria’s current population is
197,363,050 based on the latest United Nations estimates. With a population
density of 215 per Km2 (557 people per mi2.)
51.0 % of the population lives in urban areas (99,967,871
people in 2018)
The median age in Nigeria is 17.9 years. (An actively
growing population)
The total land area is 910,770 Km2 (351,650 sq. miles); an
amount that’s relatively fixed.
With the above statistics, this is a good place to quote
Mark Twain.
“Buy land. They’re not making it anymore.”
Nigeria’s economy is rapidly increasing and has a growing
population, coupled with its uniqgue political, economic, growth prospects and
market trajectories, buying land is the surest way of securing your future and
building wealth.
The first step is to begin by saving. Saving ferociously,
especially if you’re a low/middle-class earner.
How to spot a great location for land acquisition?
The smartest decision with buying land is location; choosing
the right location to buy land is EVERYTHING.
In choosing where to buy land, you need to do your research:
Factor in the economic growth potential of the region
The level of immigration
Infrastructural developments
Nature of land; is it prone to flooding?
The biggest mistakes some investors make is buying
overpriced land in an economically declining area and yet expecting a high ROI
in a few years. While the value of land appreciates, there are areas that
appreciate faster than others. Some might take 10 years, while others take 5
years.
Find out where the industries going. Consider the history of
the area. Is the area prone to social, political or religious riots? Where are
multinationals pining their tents?
Picture this, where companies go, young people go, where
young people go, smaller businesses follow and thus housing needs shoot up.
Don’t just go in the middle of a bush somewhere and assume
it’s a perfect location, do your homework.
Most importantly, ask for the
land title.
Choose LekkiVale Estate
So you’ve read all I have to say and perhaps you’ve read a
couple of other articles and reviews on investing in real estate in Nigeria. In
case you haven’t heard, Ibeju-Lekki is ‘hot’ cake. This region is a convergence
of factors and necessities that make buying land so delicious.
But as with all good things, this area is currently
saturated with multiple real estate companies and independent sellers. How do
you decide who to deal with?
Pick a plot with access to well-paved roads.
Choose an area that isn’t susceptible to flooding.
Ibeju-Lekki has a broad coastline, which is naturally susceptible to flooding.
Look further and choose land that drains well.
Choose land that has a C of O or Governor’s consent.
Choose a real-estate company that gives you the best prices
and are willing to create a flexible payment plan to fit your budget.
Choose a real estate company that’s open, transparent and
guides you through the entire verification process.
Choose LekkiVale Estate; strategically located by the
Lekki-Epe Expressway, 10 mins from the new airport and has a valid C of O.
Make up your mind and let’s give you the best investment
deal of your life with a guaranteed 400% ROI in five years.
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