Deciding to buy land in Lagos is not the easiest decision. Buying land requires a financial commitment and appreciates after a number of years. Of course, with the current economic outlook in Nigeria, tying down money isn’t the easiest 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 that 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 and even if you don’t intend on living in Lagos.
As of 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.
Consider this; 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 total of 3.72m International travellers crossed Nigerian Borders through five airports, 114 land borders and six seaports. 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?
If you’re a landowner in Lagos, there’s a high chance of value appreciation of your property irrespective of its location. Of course, areas like Ikoyi, Lekki and its environs tend to reap higher value appreciation.
Regardless of where you are in the world, you can still own land in Lagos and you should.
2. You Have Savings Account
Letting money sit in your savings account will hardly make you richer.
“How many millionaires do you know who have become wealthy by investing in savings accounts? I rest my case.“ – Robert G. Allen
Although buying land can be a huge financial commitment, it definitely pays in the long run. While it might be a clever idea to hold on until you’ve saved enough, the reality is, the cost of land hardly ever goes down (depending on the location).
So, while you wait, land gets more expensive plus you’d have to factor in inflation rates.
What does this mean to you?
Depending on the amount, you’ve saved, you can start where you are right now to buy landed property. Of course, just as all fingers are not equal, you might be unable to afford the extremely high-end areas but you can afford growing outskirts.
An excellent example would be the Ibeju-Lekki region; this region has high growth potential and if you’re looking for a rapid turnover, this is your best bet.
Plus, buying and maintaining land is a lot cheaper than acquiring property.
3. You Have Investment Plans
Everyone knows that investing is the quickest way to build wealth. However, any form of investment involves risks to varying degrees. Although quite debatable, investing in real estate is the safest investment option in Nigeria. The good part is, anyone can invest in real estate. You don’t have to be a land expert to buy land. Your question should be where to invest in.
Buying land enables you to build equity invaluable assets that can be sold for cash, used as collateral or used to fund other projects.
Once you’ve found a suitable property with valid land documents, make the move!
4. You Need A Retirement Plan
As you get older, you would need a steady flow of income and being a landlord in Lagos gives you so much financial leverage.
Lagos is the most expensive city in West Africa to rent a house. The spike in rents is triggered by the high demand for houses and even land. Most of the influential families who have properties in V.I, Ikeja, and Ikoyi, etc. predominantly live on the proceeds from 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 and hoarded for yourselves the absolute retirement fund, you should carefully 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 car owners.
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 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-value appreciation rate)
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.
Can you spot the difference?
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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 email@example.com