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 with its benefits and the level of risk involved. Typically the economy you find yourself in determines the sort of business you should invest in.
Nigeria, for instance, 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 hinders the furtherance of the past tenor’s developments. In a country that typically operates like this, investing in real estate is one of the few safe investment options that hardly succumbs to the frequent political alterations.
Real estate is the quickest way to build wealth (not overnight) but 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?
Firstly, real estate investment is a long-term venture. The value of property appreciates with time (usually years). There are various ways to invest in real estate, however, this article would focus on land acquisition. The simple rule of thumb is, buy low, sell/lease high, save profits and re-invest in acquiring more property. 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 rapidly increasing and has a growing population, coupled with its uniqgue political, economic, growth prospects and market trajectories, buying land is the surest way of securing your future and building wealth.
The first step is to begin by saving. Saving ferociously, especially if you’re a low/middle-class earner.
How to spot a great location for land acquisition?
The smartest decision with buying land is location; choosing the right location to buy land is EVERYTHING.
In choosing where to buy land, you need to do your research:
- Factor in the economic growth potential of the region
- The level of immigration
- Infrastructural developments
- Nature of land; is it prone to flooding?
The biggest mistakes some 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?
Picture this, where companies go, young people go, where young people go, smaller businesses follow and thus housing needs shoot up.
Don’t just go in the middle of a bush somewhere and assume it’s a perfect location, do your homework.
Always Compare Prices
Just because you have gotten, the perfect land location doesn’t mean you should pay the first amount they ask for. Always compare the price of the land with the neighbourhood. In that same neighbourhood, strive to get the best deal possible, baba ask questions. Most importantly, ask for the land title.
Read our article on land titles
Choose LekkiVale Estate
So you’ve read all I have to say and perhaps you’ve read a couple of other articles and reviews on investing in real estate in Nigeria. In case you haven’t heard, Ibeju-Lekki is ‘hot’ cake. This region is a convergence of factors and necessities that make buying land so delicious.
But as with all good things, this area is currently saturated with multiple real estate companies and independent sellers. How do you decide who to deal with?
- Pick a plot with access to well-paved roads.
- Choose an area that isn’t susceptible to flooding. Ibeju-Lekki has a broad coastline, which is naturally susceptible to flooding. Look further and choose land that drains well.
- Choose land that has a C of O or Governor’s consent.
- Choose a real-estate company that gives you the best prices and are willing to create a flexible payment plan to fit your budget.
- Choose a real estate company that’s open, transparent and guides you through the entire verification process.
- Choose LekkiVale Estate; strategically located by the Lekki-Epe Expressway, 10 mins from the new airport and has a valid C of O.
Call us today at 09081234564 / 09095757575 or Send us an email at email@example.com and let’s give you the best investment deal of your life with a guaranteed 400% ROI in five years.