In a bid to attain financial stability, many nigerians abroad search for proper investments with their income. Real estate is one of the most robust investment options, especially in the long run and the dream of everyone in Diaspora is to come back home one day and live a comfortable life.
Abroad: It’s a Remarkable Flexible Investment
With property, regardless of your financial aims you are mostly able to find an investment strategy that works for you. There’s the long-term capital growth strategy where in the long-term the property purchased delivers capital gain (provided the right area with correct supply/demand ratio and demographics is selected). Then, there’s the positive cash flow strategy where you can rent out the property for cash flow. There’s also the adding value strategy where you can renovate, subdivide or even alter the use of an existing property to develop, create or increase the value of the property.
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. When you buy the land, you then resell quickly for a large profit. For example, you can buy a plot of land in Ikorodu for N700,000 and resell 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 our repairs, redesign or renovations to justify the new price.
It stands out as one of the most profitable real estate opportunities in Nigeria. What you need is a trusted real estate lawyer, property agent and the money to buy the land. Your level of investment will rest largely on how much capital you have to invest. You can start with a couple of millions.
Promising Return on Investment
Real estate investments in Nigeria yield a decent return on investment, which is the frontier of investment opportunities for Nigerians living abroad. The return on investment on other opportunities in Nigeria including stocks, exportation and the automobile industry has not been as stable as the property investments over the years. For the real estate industry, the returns are higher.
Technology Has Made Things Much Easier Today
Technology has made real estate investments a lot easier. For example, advertising your property is as simple as tweeting about it, sharing a post about it on Facebook or posting an ad on a property and real estate listing website like Jumia House, Nigeria Property Center, tolet, 9jarealestate, privateproperty etc. There’s so much technology readily available to real estate investors, that you can easily manage a portfolio of properties without really needing to leave your home all the time.
Creates a Fresh Source of Income
Nigerians living abroad can acquire property for commercial use. Such investment opportunities enable you to charge renters monthly or annual rent based on an agreement. The more centralised 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 abroad and invest in the Nigerian real estate sector. With the advent of the internet, you can achieve this without having to relocate. All White Investors Hangout With The World No1 Rental-Income Coach
Helps You Build Rewarding Real Estate Experience
When you begin to invest in the Nigerian real estate market, you realise things that you never paid attention to. For instance, if you get knowledge on a government plan to build a tertiary institution close to a rural community, that would be a perfect time to buy a land or property there. 10 years down the line, there is a possibility of making 1000% return on investment when the school is in need of hostels and accommodation for its academic and non-academic staff.
The Perfect Retirement Plan
Investing in the 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 neighbourhoods like Ikoyi lekki etc 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.
Opportunities For Open Space Leasing
This is one of the easiest ways for foriegners or nigerians abroad 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 for you because while your land or property earns you return on investment, it also appreciates in value.
The Government is Also Investing
The Nigerian government underscored its investment interest in the nation’s real estate market by rolling out N1 trillion real estate fund as part of efforts to develop the infrastructure base of the nation. If the government is willing to commit 31% of the 2017 budget capital expenditure to strengthening the property market, it is an opportunity you should take advantage of.
It is a Safe Investment
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.