Deciding when to buy land in Lagos is not the easiest decision to make. Buying land requires a huge financial commitment which appreciates after a number of years. With the current economic downturn in Nigeria, investing in real estate isn’t the most practical option.
However, investing in real estate is still one of the safest long-term investment options in Nigeria. If you aren’t already thinking about buying land, here are five top signs you need to own land in Lagos.
1. You’re Nigerian
Ever heard the saying, “everyone is a Lagosian?”
Anyone can own acquire property in Lagos and if you’re Nigerian, even better. Lagos is the friendliest state to do business even if you don’t live in Lagos. In 2015, the UN projected Lagos to have an annual growth rate of 6-8% per annum, making her the 11th Mega City in the World. There’s more, statistics from the Nigeria Immigration Service (NIS) indicated that the number of foreigners that come into the country is more than those that left the country within the last five years. A more detailed report stated that 86 people migrate to Lagos every hour. Of course, the explicable reason for this gross influx of people is the ease of doing business in Lagos.
How can these numbers pay you?
As a landowner in Lagos, your land appreciates in values twice as much than any other state in Nigeria. Areas like Ikoyi, Ibeju-lekki and its environs reap even higher value appreciation.
2. You Have Money in Your Savings Account
“How many millionaires do you know who have become wealthy by investing in savings accounts? I rest my case.“ – Robert G. Allen
While buying land is a huge financial commitment, it pays enormously in the long run. It might seem a clever idea to hold on until you’ve saved enough but, the reality is the cost of land always tend to rise in the long run. So, while you wait, land gets more expensive plus you’d have to factor in inflation rates.
What does this mean to you?
You can start with what you have right now to get your own land. You don’t necessarily need to start with the extremely high-end lands. You begin with growing outskirts like the Ibeju-Lekki region. This region has high growth potential. If you’re looking for a rapid turnover, here’s your chance.
Read more: How to get the best land deals in Nigeria.
3. You Have Investment Plans
Investing is the quickest way to build wealth. However, every form of investment involves risks at varying degrees. Fortunately, investing in real estate is the safest investment option in Nigeria. The best part is, anyone can invest in real estate. You don’t have to be a land expert to buy land. Your main concern should be the location of the land for sale.
Buying land allows you to build equity in invaluable assets, which can be sold for cash, used as collateral or used to fund other projects. Once you’ve found suitable land for sale with valid land documents, make the move!
4. You Need A Retirement Plan
As you get older, you’d need a steady flow of income. Being a landlord in Lagos gives you this much needed financial leverage. The cost of housing in Lagos is one of the most expensive in West Africa. Frequent spikes in rents are triggered by the high demand for houses and land.
Most influential families with properties in V.I, Ikeja, and Ikoyi, etc. currently benefit from the proceeds on their properties.
Even better, it serves as an incredible way of passing something on to your children. Let’s just say, unless you’ve mapped out or hoarded for yourselves the absolute retirement fund, you should consider venturing into property acquisition.
5. You have a luxury car or two
Nigeria is the number one buyer of cars in Africa, with Lagos incubating majority of these cars. I once saw a social media meme that read, “If you live in Lagos, you’d think a Range Rover is N 250, 000.”
If you can afford a luxury car then, you can afford to buy landed property and you should.
The depreciation value of an average brand-new car is up to 40% by the end of its first year and this number increases to about 60% by the time the car is three years old. Of course, these statistics vary depending on the brand, mileage and other factors.
Let’s compare this to buying a plot of land at Ibeju-Lekki. (I continually mention this region due to its high rate of value appreciation.)
Three years ago, an average 600sq meters with a C of O was sold at 2.8 million. Last year, this price went up to N3.5m and today, the lowest you’d get is N5m.
See the difference?
Got Questions? Great! We’d love to help
Call us today to find out more about investing in real estate in Nigeria. You can call us right now to book a land inspection at 09081234564, 09095757575 or Send us an email at firstname.lastname@example.org