Land flipping is a type of real-estate investment that involves buying lands at a low price and selling at higher prices to make huge profits. This type of real-estate investment is profitable when land buyers buy land in an area that’s rapidly growing. You can make up to 300% on your investment in a few months or in some cases a few years.
Why land flipping is an incredible form of reaping profits:
Value Appreciation Of Land
The value of land compared to other forms of investments like cryptocurrency or stocks doesn’t fluctuate over time. Preferably, the value of land appreciates by day. In Lagos in particular, the value of land (depending on the location) can increase by up to 30% in one year. Certain areas like Lekki Phase 1 have seen a 500% value appreciation in the cost of land in just five years.
Lower Maintenance Cost
Land unlike other forms of real-estate investments require minimal maintenance. With buildings, you’d need to renovate frequently to maintain the integrity of the property. With land, you can let it sit fallow for years without spending much in maintenance and it will still appreciate in value. Land flipping is the ideal business for people who have low start-up capital and still want to reap huge profits within a short time period.
Ease Of Managing The Investment
One of the downsides of other forms of real-estate investments like rental properties is dealing with tenants, tax issues and other issues associated with maintaining buildings. We all know the stress that property owners face when it comes to relationships with tenants, government, etc. One bad tenant could cause a landlord to incur unnecessary expenses or deal with delayed payments. Flipping lands cut off all these contingencies. Plus, it’s easier to sell lands.
With lands, there’s relatively no need for special effects pictures or need much advertisement before selling the land. All you need is buy land in a fast developing area and wait for buyers to come knocking at your door, plus it’s easier not to have any emotional attachments on lands. It’s possible to resell land without the help of a realtor. You can take advantage of the many websites available to get the deal closed from the comfort of your room. The simplicity and stability that comes with owning the right piece of land, bought at the reasonable price, surpasses a wide range of problems that come with other forms of problems involved in other types of real-estate investments.
Very Little Competition to Deal With
Buying land spares you the stiff competition that comes with every other property on the market. Plus, as a land investor, you can call your own shots.
How To Make Money Flipping Lands
The key to making money from land flipping is determining the most advantageous location. Like we said earlier, people generally procrastinate doing important stuff like investing in areas that are developing. Most people would rather wait until the area has attracted value and relatively more costly before investing. Significant examples of this is the current rush to own property in areas like Lekki, V.I, Ikeja and many others.
What makes a smart land flipper is the ability to identify potential high viable areas and buy lands while the prices are still relatively low and then wait for the ‘procrastinators.’
Olatunji discovered this the easy way, and he has this to say,
“By this time five years ago, I had a pump in my salary, and I was actively looking for opportunities to invest. After going through a couple of options, I decided to invest in buying two plots of land at Ibeju-Lekki at N 800, 000 each. At that time, it seemed odd, all my friends asked why I would go so far to buy land. I reasoned that, if a Free Trade Zone was taking root there, it was only a matter of time before the value of lands around there appreciates. Anyway, I recently resold these two plots for N 5, 300,000 each. That’s an ROI 662.5% in five years. If I waited for a little over two years, I’d have undoubtedly made a 1000% ROI. I’m going further down to acquire more lands and wait.”
To make huge profits in flipping lands, follow these tips:
Research thoroughly, pick out areas that are rapidly developing, have the potential for developing in future or already developed areas. Depending on the location and economic viability, certain areas mature faster than others. If you’re opportune to acquire land in a more developed area at a fair price, go for it. More developed areas are the easiest to flip in a couple of months and earn profits compared to developing areas. Developing areas may require a couple of years to fully appreciate.
Ensure that the seller is the rightful owner of the land and has complete land documents including a Certificate of Occupancy or a Governor’s Consent. Avoid lands with inconclusive land titles like Excision in Process or Gazettes. Since you’re reselling, you must avoid getting caught up in land title issues. Go for clear, genuine lands with the appropriate land titles.
If you’ve secured the perfect land at an ideal location, do some work on the land. Clear the land, create a path or road to the land. Get a surveyor to get the area marked and craft a brilliant description of the area; highlighting advantages to cajole a potential buyer to opt in.
If you cannot write professionally, employ the services of experts in the field and then, run adverts on the land, utilizing the numerous social media sites and other forms of advertisement.
Avoid getting attached to any property, so it’s easy to let go and sell to someone else. Always keep in mind that it is business, and you’re out to make a profit.
Interested in investing in real estate? Here’s a once in a lifetime opportunity to invest in Ibeju-Lekki. LekkiVale Estate located along the Lekki-Epe expressway opposite the proposed New International Airport with a valid C of O is our fastest selling estate with ROI of up to 150% in the next three to four years.
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.
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
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.
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.
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.
In Ibeju Lekki, the Dangote Refinery is expected to be the world’s biggest single-train facility and estimated to cost $9bn. It covers a total area of 2,635ha on the Lekki Free Zone near the Lekki Lagoon, enabling easy shipment of refined petroleum products to international markets.
Nigeria currently has about 37 billion barrels of oil reserves, however, most of our refined products are imported due to the lack of adequate domestic refining capacity. It was due to this pressing need that birthed the Dangote Refinery. The refinery is expected to double Nigeria’s refining capacity, largely to accommodate the pressing demand for fuel and export to foreign markets in and out of Africa. A fertilizer plant is also included in the refinery complex, to fully utilize the raw materials released from the refinery.
This project is projected to generate more than 9,500 direct and 25,000 indirect jobs.
The Lagos Free Trade Zone
A Free Trade Zone is an area free from the intervention of customs authorities, where goods may be landed, handled, manufactured or reconfigured, and re-exported. The Lagos Free Trade Zone initiated in 2002 is the first private owned free trade zone in Nigeria and the biggest in West Africa.
It is located at the Ibeju-Lekki Local Government Area, covering about 155 square kilometres. This zone was strategically chosen based on its integrated hub of active roadways, rail and sea links, eliminating all accessibility barriers. The core objective for this Lekki Free Trade Zone is to provide an ideal platform to expand the investment potential, business activities and tourism sector of Nigeria by eliminating trade barriers, while developing the export-oriented industries, increase foreign exchange earnings and generate employment opportunities.
Ongoing Developments in Ibeju Lekki
Already, the LFTZ has facilitated massive investments like the Dangote Refinery and Petrochemical plant. The Lekki Free Zone’s completion date is set in 2022, and it’s projected to create 300,000 direct jobs and 600,000 indirect jobs.
The Lekki International Airport
The Lekki International Airport project was initiated to lessen the pressure on the Murtala Muhammed Airport (MMIA) in Ikeja. The master plan of the new airport shows that it’s designed to cater to wide-body, double-deck, and four-engine aircraft with the capacity for up to 500 seats. For a start, the Airbus A380 is expected to carry two million to five million passengers per annum with future prospects of expansion to cater to the increasing aviation needs of the rapidly developing Lekki area and its environs.
The airport’s site is on a 3,000-hectare piece of land off the Lekki-Epe corridor; about 10km from the Lekki Free Trade Zone (LFTZ). It’s strategically located to serve the fast-growing residential and industrial Lekki hub.
The Deep Seaport
The new multi-purpose Deep Sea Port, dubbed as the deepest port in Africa is located at the heart of the Lagos Free Trade Zone. It is spread over 90 hectares of land, approximately 65 km East of Lagos City. The Lekki Deep Sea Port is designed to provide enormous value and support to the burgeoning commercial operation across Nigeria and the entire West African region; with a contract term of 45 years. This project is expected to create about 170, 000 direct jobs and grow to about 2.7 million and 4.5 million TEUs when the project operations fully commence. Also, note that the deep sea port location was strategically located based on the inter-connected road network like:
Lagos is the commercial heart of Nigeria and West Africa; with this comes massive economic opportunities, rapid population growth rate and infrastructural pressure like the need for bigger, better roads. The 4th mainland bridge was proposed to curb the increasing pressure that threatens to paralyse the city’s circulation. The new bridge is expected to improve the natural flow of people and vehicles.
The bridge is designed as a 2 level bridge that simultaneously allows the smooth movement of large numbers of people. The bridge when completed will be 38 kilometres long and would run pass Lekki, Baiyeku towns and Langbasa, serving as an alternative route from Lekki to Ikorodu, Ikeja to Ajah and an additional alternative to the Eko, Carter and 3rd Mainland Bridge.
The 4th mainland bridge is a four-lane dual carriageway designed to have eight interchanges to facilitate effective inter-connectivity between different parts of the state. This project is projected to cost N844billion and is expected to be delivered in three years.
The Dubai Smart City Deal
To crown it all, the Chief Executive Officer of Smart City Dubai LLC, Mr. Jabber Bin Hafez signed the MOU, which would make Lagos the home of the very first Smart City in Africa. The event was presided and witnessed by the Lagos State Governor, Mr. Akinwunmi Ambode. The Chairman of Dubai Holdings, His Excellency, Ahmad Bin Byat who is also the Deputy Prime Minister.
The Smart City deal is expected to draw from the success of Dubai’s innovative knowledge-based industry clusters, to empower business growth for companies and knowledge workers all over the world including our very own Ibeju-Lekki axis. The deal establishes this axis as a strong convergence for technology, economic development, and governance.
Real Estate Forecasts for Ibeju-lekki
Besides all these massive industrial developments currently on-going at the Ibeju-Lekki axis, one factor that makes investing in real estate at Ibeju Lekki an absolutely ultimate deal is the growing Lagos Population Growth.
Lagos state’s population growth rate is rapidly growing now reaching 21 million from just 1.4 million as of 1970. One report stated that about 6000 people move into Lagos daily. Unfortunately, this migration isn’t followed by adequate housing infrastructure. In fact, Lagos needs about 3 million housing units to cater to its existing population.
Other minor facts are:
Lagos is the most expensive city to rent a house in West Africa.
It is also home to the highest number of millionaires in Lagos and West Africa.
If you’re a savvy investor, you must have gotten it already.
With the high demand for labour at Ibeju-lekki, expect a huge urban migration to this region. Coupled with a stable source of income, you’d have ready and willing people to pay good money for accommodation by 2022.
Knowing where to invest is one thing, choosing the team to work with to realize your investment goals is another. Here at Sevic PDC, we ensure your investments are 100% secured by offering you the following:
The best, strategically located estate at Ibeju-Lekki. LekkiVale Estate is located along the Lekki-Epe Expressway approximately 45 mins from Lekki Phase 1 and 10 mins from the new airport.
LekkiVale Estate has a valid, verifiable C of O land document. We encourage all our clients to thoroughly verify land documents before buying land, and we assist them through the whole process.
LekkiVale Estate is spread across 6 hectares of dry land. You don’t have to spend an extra naira on landfilling.
All our land prices are extremely affordable, with the added advantage of a flexible payment plan to suit your budget.