Top Benefits of real estate Investment in NIgeria

Nigeria’s real estate market is big and the recent boom in the industry has created various opportunities for investors to exploit and become successful property owners. abounds.. Nigeria is the seventh most populous country in the world and the most populous country in Africa with over 200 million people. Real Estate investment and development have contributed immensely to the country’s economy and have massively improved in growth over the past few years.

According to Uche Emordi, a realtor and a content manager “The Gross Domestic Product (GDP) of the real estate services (nominal terms) has increased by 10.87% in the first quarter of 2022. It is higher by 2.79% points than the growth rate recorded within the period in 2021. This is compared to 2020, where the GDP of the Nigerian real estate industry was N3.96trillion at a 9.4% decline from the prior year’s N4.37trillion”.

Real Estate investment has greatly improved the country’s GDP and still with the hunger for improvement in Nigeria, investors have some immeasurable benefits that guarantee their investment here, of which the government has given them minimal or no tax rates on their investment since its an avenue of improving the standard of living of the people. Below are the top 10 benefits of real estate investment in Nigeria.

1. STEADY INCOME

Real Estate is an investment that gives you a guaranteed steady flow of income and means of gaining financial stability. This steady income is generated from rental properties. You profit more from property flipping which is when you buy an old property at a low price, carry out repairs and renovations then sell at a higher price. A  steady flow of cash helps you build equity (an asset that is part of net worth) which could help you obtain loans to increase your investments and your portfolio.

2. HIGH RETURN ON INVESTMENT (ROI)

Real Estate has one of the highest ROI in the world and has proven to be the best way of building lasting wealth over time. Investors make money through rental income, appreciation and profits generated from business activities but land banking and estate development are amongst the most profitable. High return on investment is a major reason why people invest in real estate as investment grows in value especially in developing regions in Nigeria due to the high demand for quality shelter and offices for business operations.

NOTE: The average return on any investment coming from an appreciating property will exceed that of any other investment.

3. HUGE POTENTIAL MARKET

Nigeria has a housing deficit of 17-20 million which makes it a hungry market for real estate investors. However, with Nigeria’s present and still increasing population, it’s no surprise that real estate investors are deciding to invest in both residential and commercial properties. Investments range from high-rise, middle-rise and low-rise buildings, apartments, business complexes, plazas, malls, etc This is a result of an increase in demand for people looking for places to live and run their businesses.

4. HEDGE AGAINST INFLATION

Real estate is one investment that rise generally in value and the appreciation rate is always higher than inflation. This not only preserves there but increases the purchasing power of the investor.  As a result, instead of saving money in the bank, wealthy people bank their wealth in real estate. As the demand for real estate and inflation drives rents higher, this in turn translates into higher capital value, which is an important growth strategy for investors. Real Estate investors at this point generate more profits as they sell off their property, or short let market at higher prices.

5. EASILY INSURABLE

Real Estate investments are easily insured as there are various insurance companies in all countries around the globe. With your property fully insured you stand a chance of being safe from worries as you sleep soundly at night, while your tenants are covering the cost as well. The ability to secure your property from harm gives real estate investors an edge over other investments. Reasons, why you should ensure every investment you own in real estate, is insured

• Insuring your property protects them from natural disasters (property damage).
• In the cases of theft or break-ins, there’s reimbursement for your lost items.
• Insuring your properties gives you protection from lawsuits as there are always people who will want to sue you for whatever reasons.

6. ASSET APPRECIATION

Property investment is the best way to build up your wealth and equity especially when you are looking towards a long-term investment plan because its value tends to appreciate over time unlike other types of investment. Aside from natural appreciation of the property, you can also force appreciation on properties to increase their value by buying an old property and renovating it; such as fixing the roof, the addition of solar panels, repainting the apartment, replacing windows, interior designs and so on are things that force appreciation on a property thereby increasing its value.

7. BUILD EQUITY AND WEALTH

From our above discussion, you already know that equity is an asset that is part of your net worth. Owning and acquiring new properties adds to your equity as well as builds up your wealth which gives you more leverage to buy more properties and increase cash flow.

You can contact us at our office address; B8 Blossom Mall Along DBS Road Asaba for your property management serviced apartment and estate development. Or Email; conichomesandpropertiesltd@gmail.com

8. PASSIVE INCOME

The goal of every investor is to MAKE PROFIT. Income coming from rental properties (monthly and yearly bases) brings in Money which would be used for other investments thereby increasing wealth. One of the greatest investors of all time Warren Buffett once said: “if you can’t find a way to make money while you’re asleep you will work for money until you die”. It all depends on your goals and financial abilities as a real estate investor.  You’re in charge of the type of property investment you purchase and how you generate your income.

9. EASY WAYS TO DIVERSIFY YOUR ASSETS

Real estate is one investment that gives you a variety of options when investing, so if you are looking for a way to diversify your asset look no further than real estate. This provides you with a list of options such as; single-family, multi-family, short-term rentals commercials- offices, shops, commercial complexes- hotels, malls etc. these and many more are several ways you can diversify your assets in real estate.