Real estate investment is the best way to earn a passive income, save for retirement and build a diversified investment portfolio.
At Landicon, we believe investing in real estate in Nigeria is the best form of investment as you get to use other people’s money (from rent) to pay off your initial investment while simultaneously increasing your monthly cash flow. Isn’t that great?
Wondering if real estate investment is for you? Read on as I share with you 10 benefits of investing in real estate and how you can get started with a friendly budget if you don’t have hundreds of millions to invest.
1. Investing in Real Estate Gives Passive Income
Like any other form of investment, the number one reason to invest in real estate is to generate a passive income for yourself so you can enjoy more of the things you want in life.
Just as the popular saying goes; “landlords grow rich in their sleep without working, risking or economising”, as a property investor, you earn passive income from renting out your properties.
2. Real Estate Investment is About the Safest
In real estate, there is a popular saying; “safe as houses” and it is true. Over the years, Nigerian property has increased in value despite the recession.
According to an investor, University lecturer and author Peter Koulizos; “when you factor in the return and risk associated with buying property and shares, property wins hands down”.
Though Shares have higher capital growth, the risk is huge. Which would you considered safe;
- Shares – an investment capable of yielding +40% a year, but can give -40% in a week? or
- Real estate – that can give a steady +20% yearly?
Real estate investment is a more stable investment with limited immunity from fluctuation.
3. It is Easy to Get Started
Starting real estate investment doesn’t require any specialised knowledge. It is as easy as finding a trusted realtor in your vicinity and starting off from there.
In fact, many Nigerian real estate investors didn’t start off intending to make a fortune through property. Instead, they just bought a land to build their homes to live in. It is after seeing how the value of their property shoots up and realizing how much wealth one can generate, that many investors take the leap and start proactively investing in real estate.
4. Researching is Easier than Stocks and Shares
To invest in stocks, you must be educated and understand how the financial system works.
However, investing in property is much simpler. You can get involved today without knowing any complex world of trading, just by doing some search at the state’s Land Registry and Court to be sure the property is safe to buy.
5. Real Estate is a Great Investment for Retirement
One good thing about real estate investment is that it keeps growing even when you are retired. And it is a good way to retire rich.
When you retire, say in 20 years time, your property would have even increased in value, making you worth more. You can then relax and live off on your real estate investment.
6. Increased Cash Flow
Because rental properties normally appreciate in value with inflation, there is an increased cash flow from rents.
As a tenant, I remembered how my father’s landlord always increase the rent every few years despite not spending any money on the property.
This goes with the popular quotes; “Landlords grow rich in their sleep without working, risking or economising”.
7. Becomes Easier With Technology
With the kind of technology accessible in today’s world, getting started in real estate investment has become a lot easier.
Buying a property is as simple as searching Google or browsing through property listing websites like Landicon Realtors, PropertyMart, Nigeria Property Centre, Jumia House, etc.
Nowadays, there are many ways you can buy and resell properties using technology. You can as well make use of realtors, there are a lot of them online that can help you to manage your property portfolio.
However, it is necessary you find genuine and trusted realtors because wherever you see people gathered, you will surely see bad eggs among them. Click here to chat with a trusted and informed Lagos realtor on WhatsApp.
8. You Are 100% in Control
Unlike shares where you need to hire a broker to handle your investment for you, investing in real estate gives you total control of your investment.
Investing in property makes you the direct owner of your investment once purchase and all legal stuff have been completed.
You wouldn’t need to rely on a share broker where and the value of any shareholding which depends on market conditions and actions of the people running the company. With real estate investing, when done right, there is no element of uncertainty.
9. Real Estate is Tangible
“Property is one of the few investments which you can really see and feel, and this often makes it feel more real” – Troy Harris.
Yes, it feels good to know that you’ve invested in something tangible, I mean, something you can ‘look at’ and ‘touch’.
It’s tangible, it’s solid, it’s beautiful. It’s artistic, from my standpoint, and I just love real estate. – Donald Trump
While much of this may be a psychological comfort, there’s also a monetary benefit. After all, even if worst happens, the fabric of the property and the land underneath will still have some tangible value – unlike shares in a company that’s gone under.
10. You Can Pass it Onto Your Children
The greatest inheritance your children can have is real estate. I know of a friend whose grandfather once bought an acre of land in Lekki. With nothing on it, it now worth over a billion naira.
His grandpa that bought it is now resting in the Lord – happy – because both my friend and his father always bless his spirit whenever they see the inheritance.
The question now is… what inheritance do you want to leave for your children, grandchildren, great-grandchildren and generations to come?
What is that money doing in your bank account? Instead of fixing it to gain about 10% and let your bank borrow other real estate investors for a better interest rate to their pocket, why not use that money to invest in real estate yourself and gain over 30% to 70% return on your investment in 12 months?
My advise to you as an informed realtor today is, whatever you do, buy land. If you’ve bought one already, buy another land. If you have 2, buy the third. Buy a lot of it.
You can start small, it doesn’t have to be in Ikoyi or VGC. If you can spot areas at a fringe of development, go there to buy lands. With a budget of N1.5m, you can kick-start your real estate investment journey in Ibeju Lekki.
I have helped a lot of smart real estate investors invest in properties in the fastest developing axis of Lagos state. I can help you with your real estate investment as well. Kindly call or WhatsApp me on 08036129474 and let me add you to my list of wealthy and happy landlords in Ibeju Lekki, Lagos.
You can as well read 5 Profitable Ways of Investing in Real Estate in Nigeria as it will help you decide how to enter the real estate investment world as a new investor.
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