Nigerians in diaspora: What to consider when investing in real estate in Nigeria!

Nigerians in diaspora: What to consider when investing in real estate in Nigeria!

For Nigerians in diaspora, investing in real estate can be tricky yet straight forward. While it’s true that anyone can invest in real estate, there’s a lot of ins and outs you would need to navigate to earn big. The key to staying on top of your game as a real estate investor is to stay informed. In real estate, information is key. If you’re a first-time investor seeking to diversify your investment portfolio or an investor considering the prospects of investing in real estate, consider the following factors:

Be Informed. Don’t Speculate

It’s easy to assume when investing in real estate. We assume a certain area is booming or another is declining without figures or projections to back it up. Sometimes, these assumptions might carry a bit of truth but too often the basis for them are weak. As a first-time real estate investor, before pouring income into any property research on the growth potential of the area you’re looking to invest in. All investments are risky. Limit your risk by being thoroughly informed about your chosen location. Talk to real-estate investment experts.

Be realistic

Too often you find first-time investors looking for a quick money fix in real estate. While there are different real-estate investments that can allow a short-term turnover, significant turnover in real estate takes years. Be realistic about the time frame required for value appreciation. You’ll likely not buy property at Lekki and sell in six months at a 30% profit; it’s possible but not likely. Keep your expectations in check and set realistic time frames for profitable ROIs.

 

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LekkiVale Estate features

 

Find Out Your Why

As with all things, it’s important to be clear of your “why” of investing in real estate. It could be one of many reasons:

  • Diversify your investment portfolio.

  • Build land equity.

  • Long-term investment plan.

  • Retirement plan

  • Leaving something behind for your family

  • Sustainable, safe investment option

There are many reasons why people invest in real estate. Finding out what yours is will help in determining the type of property you need and where such a property should be located. It also identifies possible limitations and acts as a guide in deciding which option best fits your objectives.

Choose a credible and professional real-estate company

You can have great deals from buying real estate directly with a professional real-estate company, without needing to set foot on Nigeria. However, there are good eggs and there are bad ones. If you aren’t familiar with the real-estate market, here are a few tips to keep in mind:

  • Find out as much as you can from the developer online.
  • Request a video call to tour their office.
  • Record every transaction including texts and voice calls.
  • Verify that the estate is actually where it’s said to be located.
  • A better option would be to get your family or friends to go for an inspection of the property and verify all property documents.

If you’re buying off the plan, you can ask to be updated regularly with process pictures of the project. Ensure you’re constantly communicating with the real-estate agent or company you’ve chosen to work with.

 

nigerians-in-diaspora

Investing in Real Estate

 

Read more: The ultimate land buyers’ checklist 

 

Look out for opportunities

The real-estate market is constantly changing. Certain places become more valuable while others become less desirable.The Real estate market requires quick action when opportunities come up. For instance, the Ibeju-Lekki region is showing prospects of becoming a booming real-estate hub. However, amidst all the rush, not all the lands there are viable. Some are government lands, others are along the coastlines and thus prone to flooding, while others are located in tricky locations that are prone to pollution. Investigate the region closely. Keep Your Eyes Open.

Think about security

Land security boils down to getting the right land title. Every other security concern can be resolved once you have the right land title in Nigeria. The ultimate land title that guarantees safety from omonile issues or litigation issues is the Certificate of Occupancy (C of O). Avoid lands with the ‘excision in process’ land title, irrespective of how juicy the deal might seem. Forget it! One of the advantages of dealing directly with a reputable real-estate company is the security of your land even after you’ve purchased it. You can be certain that the entire property would be fenced, thus preventing unlawful intrusion on your property in your absence.

Establish Your Budget

Investing in real estate costs money. Depending on the property you’re buying, you’re going to need a lot of it. Determine how much you willing to pay before even looking or deciding on the best place to buy. Once you’ve determined how much you can spend, stick to your budget. Avoid making hasty or emotional decisions when choosing the property to buy. Most real-estate companies give you the opportunity to spread payments over a period of time for up to 12 months. Ensure you choose a payment plan you can keep up with.

 

Read more on the ultimate land buyers’ checklist 

Know Your Exit Strategy

When looking to buy property, determine if you’re looking to hold the property and rent or seeking a land flip or fix to flip. Be specific.

If you’re looking to fix and flip for a quick profit, consider the additional cost required for the entire renovation and the cost of properties in the neighbourhood. This should help you in pricing the property for positive returns. If you’re buying land to hold (which is relatively cheap to maintain) look out for where the development is going and then, buy land and wait.

Start Small

While the goal might be to make billions from investing in real estate, start small. If you’re a first-time real-estate investor, it’s ok to start with a plot of land and then two, and then five… make sure the property is easy to maintain.

As you take baby steps, learn the market, understand the trends. You don’t need to rely on agents to know what a good deal is. Take out time to know the market value of your property at any given time. It’s easy to go big in real estate once you’ve gotten the hang of it.

 

 

Find Out If It’s A Good Investment

Rule of thumb: don’t confuse where you would want to live with where you should invest. Most first-time investors tend to confuse where they would live personally with where they should invest. With Investments, all you need to concern yourself with is distinguishing between immediate income and future value.

There are properties located in transforming neighbourhoods that are currently showcasing lower returns but offer higher future returns for your money and others that look promising but might likely become less desirable in the future. Pay attention to growing areas like Ibeju-Lekki.

Don’t Skip the First Step

The biggest mistake new investors make is to jump into investing without taking the time to get educated on what strategy is best for them. Jumping in without the right investment tools can lead to bad investments, lower returns and much higher risk. The first question to ask yourself is, which resource do you have more of, time or money?

Talk to our in-house real-estate investment expert on 09081234564, 09095757575 or Send us an email at info@sevicpdc.com  for a free consulting session today.

You can also chat with us on WhatsApp: 09095757575

 

Related content: What Is Land Flipping And Why You Should Get Involved  

Nigerians in diaspora: Have you considered investing in Real Estate?

Nigerians in diaspora: Have you considered investing in Real Estate?

According to the World Bank, Nigerians in diaspora; living abroad wired $22 billion home in 2017, making it the largest African record remittance and the fifth largest in the world. As the number of Nigerians in diaspora continuously increase, the desire to own property back home also increases. There are many reasons why you need to consider owning property back home. Here are a few:

There is no place like Home

Let’s face this: once you’re a Nigerian, you’re a Nigerian, even though you might not desire to live in Nigeria, it’s necessary to have something to your name back in Nigeria. A fundamental part of being connected to your roots is having a home back home. You could earn from it as well. You can also create an opportunity to reap in the future for you and your children. You can build a legacy.

Opportunity for Land Flipping

Land flipping is buying land at a relatively fair price and reselling after a period of time to make a profit. For example, you can buy a plot of land at Ikorodu for N700,000 and resell to another buyer at N1.3 million in a space of 6 months. Before considering to flip land, you need to take into consideration the location of the property. Certain areas like Lekki all the way down to Ibeju-Lekki are likely to appreciate faster than other regions.

 

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Land Flipping

 

An Additional Source Of Income

Investing in real estate is always a good idea especially as a long-term investment. Nigerians in the diaspora can acquire property for commercial or residential use. Whereby you can earn annual or monthly rents based on the agreement. For instance, you could acquire a property at Lekki phase 1 and redesign for commercial use to different vendors. When getting a property for commercial use, the rule of thumb is to get properties in centralized locations. The better centralized you are, the higher the rent you can charge. In the case of residential properties to rent out, location plays a great role too. It is always better to build in a growing area than a declining or saturated area. For example, it will be better to build at Sangotedo than Egbeda. The reason is, rent rates are subject to the laws of demand and supply. Also, certain areas attract value appreciation faster than others. You can effortlessly invest in real estate in Nigeria without having to relocate, as you can have all the necessary negotiations done online.

The Perfect Retirement Plan

Generally speaking, Lagos commands higher housing costs compared to other states in Nigeria and even West African countries. This stems from its constant growing population, leading to high demand for affordable housing. This need presents an excellent investment opportunity. You can invest in residential apartments or buy land to lease out or resell after a couple of years. This is one of the surest ways of building wealth for your family and as a retirement plan. Imagine if you had acquired property at the Ikeja, V.I or Ikoyi region 10-15 years ago. If you decided to resell the property in such a prime location today, you would earn a fortune. Today, Ibeju Lekki presents a fantastic opportunity to invest for the future.

 

 

Read more: Why Real Estate is The Safest Investment Option In Nigeria

 

Opportunities for Open Space Leasing

Open space leasing is one of the easiest ways to invest in real estate in Nigeria. All you need is to buy a property and remodel into a makeshift space or buy land and create a co-working space that can be leased out to different entrepreneurs for an agreed period of time. This is a win-win for you as your property appreciates in value, while you collect monthly or annual rents.

It is a Safe Investment

Compared to other types of investment in Nigeria like investing in agriculture or even stocks, real estate is more stable and safer. Property investments offer you double value; they increase in value over time and there are physical assets in your name.

 

Read more: How to get the best land deals in Nigeria.

 

If you’re still skeptical about investing in real estate in Nigeria, consider this:

The National Bureau of Statistics (NBS) recently released Gross Domestic Product (GDP) figures for the second quarter of 2018 indicating that for the first time since the country’s exit from recession in 2017, economic growth was driven by the non-oil sector. Among the sectors that led the expansion in real term were the construction and slightly real-estate sectors.

 

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Nigerians in Diaspora

 

You Don’t Need to be an Expert

Unlike any other venture, investing in real estate doesn’t necessarily require years of expertise or deep levels of knowledge. Anyone can invest in real estate. However, you must ensure you’re dealing with a transparent real-estate company or agent. Secondly, verify all property documents in connection to the property. Most of the verification process can easily be done by a family member or close friend living in Nigeria. If you’re concerned about choosing the perfect location to invest in, then you’re in luck as we have an in-house real estate consult who can walk you through the process.

Call us today on 09081234564, 09095757575 or send us an email at info@sevicpdc.com for one free consultancy session with our in-house Real Estate investment expert.

You can also chat with us on WhatsApp: 09095757575

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