How I Lost N15m in Real Estate Deal – Client Shares Bitter Experience

0
522

I decided to share this story with you and my other blog readers because we can all learn from this experience while investing in Lagos real estate or anywhere in Nigeria.

Although, he didn’t lose the money in cash, he lost it on return on investment.

Here is the story he shared;

This is a true life story of how Mr Uche rejected the opportunity of buying land worth N700,000 per plot just because the land was swampy.

Fast forward to 10 years after, the very same land is selling for N15,000,000 per plot.

In just 10 years.

The sad part is that he didn’t buy the land despite the fact that he admitted having the money and can even pay it outright.

One thing I usually tell my prospects that call me up for free real estate consultation is foresight. If you are shown a piece of land, the first thing to do is to foresee the land and the location in 10 years time.

A lot of people have turned back on golden opportunities like this just because they were seeing bushes or water on the land. Some said no to great opportunities because the location is ‘far’ from where they live.

You see… whether you buy the land or not, two things will happen;

  • You will spend the money and
  • 10 years will come and pass

If you foresee some development coming to the area and you buy the land, 10 years will come and you will reap from the high return on your investment. If you want more ROI, then wait some few years more. It’s that simple.

And if you do not buy the land, you’ll still have to spend the money on something else and that 10 years will still come and go and you will not still have the land and the ROI.

Although Mr Uche learnt the lesson the hard way it’s an experience we can all learn from.

When I first read his story, something came to my mind.

Like… what if he bought 10 plots of that land in 2008?

In 10 years, his investment of N7m would have worth N150m. This is even better than buying land (for land flipping) in Lekki in terms of the kind of ROI.

There are many instances like this.

What a sad story. How much do you think a plot of land would worth close to Yaba College of Technology today? N60m? N80m or N100m?

It happened to my dad too.

In fact, it was my dad story that I shared on Facebook that made people to share their stories too.

My dad would have own a plot of land in Lekki Phase 1 but he turned down the offer just because it was ‘far’ and ‘swampy’. A land he was offered for just N50,000 in 1998.

It’s 20 years this year and a plot of land in Lekki Phase 1 starts from N120m upward.

What kind of investment can give so much return on your money if not real estate investment?

Have you ever heard the popular saying… we don’t wait to buy land, we buy land and wait?

Most people do think it is a phrase used when a real estate consultant wants you to buy land now but it is more than that.

This catchy phrase is so powerful in that if ignored can have a negative impact on ones’ finances and/or may not allow you to buy the land you desired.

Let me explain with just 2 reasons;

Reason #1: Increase in Price

When you see a good offer, grab it immediately (after doing your due diligence of course). This is because price of land increases as time pass.

An example is Imperial Gardens in Abijo GRA that was sold for N9m last year at its launch. But today, a plot of land in Imperial Gardens is selling for N10.4m.

Reason #2: Miss Out Totally

When you have estates that are strategically located, this usually happens. In fact, it has happened to a couple of my clients on some few occasions.

For example, it’s about happening with Imperial Gardens in Abijo GRA.

This estate is strategically located on an interlocked road, less than 3 minutes drive from the Lekki-Epe Expressway and just about 5 minutes drive from the Novare Mall (Shoprite) in Sangotedo.

This estate is about to get sold out as it’s less than 16 plots available as at today; January 3, 2019.

Why am I saying this?

I have some few of my clients that are still on the fence thinking if buying land in Imperial Gardens Abijo GRA is a good choice.

The sad news is… before they finish thinking, the estate would have been sold out thereby missing out totally on this great investment.

Last year, Imperial Gardens sold for N9m. As at the time of writing this piece, Imperial Gardens is selling for N13 N10.4m a plot. How much do you think it would sell for next year?

My Client Who Missed Out Totally

Long story short…

One of my clients missed out on Westwood Park Estate in Sangotedo area of Lagos state when it was selling for N8.4m because he kept on postponing. Then, after a year and a half, the estate got sold out.

By the time he came back asking, he was surprised the estate was selling at N16m per plot. As at the time of writing this; 3rd January 2019, a plot of land in Westwood Park Estate is selling for N17.5m. What an appreciation within 2 years.

Though he wasn’t happy that he missed out, he quickly bought land in East Amber Estate in Abijo GRA (owned by the same real estate company) when it was selling for N10.5m per plot. As at the time of writing this, a plot of land in East Amber Estate Abijo GRA is selling for N11m.

So in conclusion, don’t wait to buy land, buy land and wait.

Below are Our Handpicked, Best Selling Estates in the Ajah-Sangotedo-Ibeju Corridor

1 – Berry Court Badore (beside Corporative Estate in Badore, Ajah, Lagos)

  • Status: Dry
  • Title: Gazette
  • Price: N15m

For more details on this estate, click Berry Court Badore Ajah

2 – Imperial Gardens (behind Corona Int’l Schools, Abijo GRA, 17 mins from VGC)

  • Status: Dry
  • Title: C of O
  • Price: N10.4m

For detailed information on this estate, visit Imperial Gardens Abijo GRA

3 – East Amber Estate (located at Abijo GRA, about 20 mins from VGC)

  • Status: Dry
  • Title: Governor’s Consent
  • Price: N12.5m

For more info on this estate, click East Amber Estate Abijo GRA

4 – Sibgan Gardens (beside Beech Wood Gardens, Bogije, Lagos)

  • Status: Dry
  • Title: C of O
  • Price: N8m

For more info about this estate, click Sigban Gardens Bogije

Be the First to Receive Our Next Real Estate Tips via WhatsApp Broadcast




LEAVE A REPLY

Please enter your comment!
Please enter your name here