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 pros and cons. Typically, the economy you find yourself in determines the sort of business you should invest in.
Nigeria 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, hinder the furtherance of the past tenor’s developments. In a country that works like this, investing in real estate is one of the safest investment options that hardly succumbs to the frequent political alterations.
Real estate is the quickest way to build wealth (not overnight) 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?
(Text has been revised and paraphrased)
How Can You Benefit From This?
The value of the property appreciates over time. There are various ways to invest in real estate, however, this article focuses on land acquisition. The simple rule of thumb is, buy low, sell/lease high, save profits and re-invest in acquiring more properties. 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 growing and has an exploding population rate, coupled with its tenacity of its people, buying land is the surest way of securing your future and building wealth.
Read more: Top ways to save and invest in real estate.
How to spot a great location for land acquisition?
The smartest decision with buying land is the location. Choosing the right location to buy land is EVERYTHING. In choosing where to buy land, consider the following the following factors:
- The economic growth potential of the region
- The level of immigration
- Infrastructural developments
- Nature of land; is it prone to flooding?
The biggest mistakes 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?
Keep in mind: where companies go, young people go; where young people go, smaller businesses follow and then, the demand for housing needs shoot up.
Also read: The ultimate land buyers’ checklist
Always Compare Prices
Just because you have gotten the perfect location doesn’t mean you should pay the first amount they ask for. Always compare the price of the land with the neighbourhood. Strive to get the best deal possible, baba ask questions. Most importantly, ask for the land title.
An interesting piece to read: Land Titles and how it affects your investment
Choose LekkiVale Estate
LekkiVale Estate is located at the heart of Ibeju-Lekki. Ibeju-Lekki is generating all the buzz in the economic development sphere in Lagos state. This region is expected to be the prime commercial hub of West Africa by 2025.
LekkiVale Estate presents the perfect opportunity to invest in this booming region. Lekkivale Estate is 100% dry land with a Certificate of Occupancy. Call us today at 09081234564, 09095757575 for more information or Send us an email at firstname.lastname@example.org.
Let’s give you the best investment deal of your life with a guaranteed 150% ROI in three to five years.