Some Reasons to Invest in Nigerian Real Estate – ESPECIALLY FOR DIASPORA NIGERIANS
The Nigerian real estate industry is easily one of the most viable/profitable investment opportunities open to Nigerians living abroad.
Property in Nigeria yields a healthy return on investment for short-term, middle-term, and long-term investors.
Here are the top reasons Nigerians living abroad should invest in Nigeria’s real estate sector.
Nigerians living abroad can acquire property for commercial use. Such investment opportunities enable you to charge monthly or annual rent, based on an agreement.
For example, you could buy a 3-storey building in one of Ikeja’s commercial districts like Computer Village and redesign it to have blocks of stores. You then rent out these stores to merchants. The more centralized the location is, the higher the rent you can charge.
Another good thing about this is that the rent you charge is subject to the laws of demand and supply as well as a steady appreciation in value with the passage of time.
This provides you with a new source of income, regardless of what you do for a living. You could have a job as an Auditor based in Canada and invest in the Nigerian real estate sector.
With the advent of the internet, you can easily monitor your investment. You can achieve this without having to relocate.
Land flipping happens when you buy land from a seller who does not have as much knowledge as you do about the real estate market or someone in dire need of cash.
When you buy such land or house as the case may be, you then resell quickly for a large profit. For example, you can buy a plot of land in Ikorodu for N700,000 and resell it to another buyer at N1.3 million in a space of 6 months.
Before you flip a land or property, it’s important that you carry out our repairs, redesign, or renovations to justify the new price.
It stands out as one of the most profitable real estate opportunities in Nigeria as a developing economy with huge untapped potential.
What you need is a trusted real estate lawyer, property agent, and the money to buy the land. Your level of return will rest largely on how much capital you have to invest. You can start with a couple of millions.
The opportunity here bothers on the fact that as any area gets more developed, the value continues to appreciate so, you need to be well guided to make an informed decision and to be strategic in your investment decisions.
Real estate investments in Nigeria yield a decent return on investment, which is the frontier of investment opportunities for Nigerians living abroad.
It is on record that returns on investment on other opportunities in Nigeria including stocks, importation, exportation and the automobile industry have not been as stable as the property investments over the years.
For the real estate industry, the returns are higher, due to the fact that there is huge deficit in housing supply thereby providing a great investment opportunity.
Investing in real estate in Nigeria for long-term benefits is one of the best ways to ensure that by the time you retire, you no longer have to struggle with paying your rent.
This is perfect for you if you plan to relocate to Nigeria upon retirement. There are also different options open to you. You could build or buy a house and rent it out.
This guarantees a steady flow of income for you. If you own property within prime neighborhoods like Ikoyi and Ikeja, your retirement is covered.
If you decide to sell 20-30 years after you acquired it, you’re certain to get even more value for your investment. There is also the pay-to-own option whereby you transit from tenant to Landlord overtime based on agreement.
This is one of the easiest ways to invest in real estate in Nigeria. How does this work? You buy a property or land in a very central location like Lekki and lease it to those in need of makeshift space.
The land or space can be leased to entrepreneurs investing in different businesses. It is a win-win situation because while your land or property earns you a return on investment, it also appreciates in value.
The Nigerian government underscored its investment interest in the nation’s real estate market by rolling out N1 trillion real estate funds as part of efforts to develop the infrastructure base of the nation.
This investment is grossly insufficient and a far cry from the realities of Nigeria’s property and housing need but in any event, there is also non-existence of effective mortgage instructions by the Government, and the few private-sector mortgage banks, charge exorbitant interest rate when compared to what obtains in the western world.
They have also added to the pressure on demand and thereby increasing profit margins for private investors.
Investing in the real estate market in Nigeria is not as volatile as other investment options you might come across. Property investments are safe in Nigeria for two reasons. It is a paying asset and increases in value.
You don’t have to be a specialist in the real estate sector for you to invest in it especially when you are a Nigerian living abroad.
Things like stocks and shares require a deeper level of knowledge to be able to successfully invest in them but with property investment, what you need is trusted real estate advice from informed professionals.
Investing in the Nigerian real estate is a win-win opportunity because it has both short-term and long-term benefits.
Before you invest, ensure you are armed with expert advice and tips on different parts of the Nigerian real estate industry.
Technological advancement has made this easier with the online platforms that make it possible for you to access property listings despite living outside Nigeria.
