Money Making and Investment Opportunities in Real Estate, Property Acquisition and Sales

With rising inflation, the depreciating Naira and high lending rates, it has become important to source investment opportunities that provide a hedge against inflation, serve as a store of value, and guarantee optimal returns.

Whilst the stock market has multiple income generation potential, there is a level of expertise required to thrive in stock trading and minimize exposure and risk. If you are not skilled and knowledgeable, you can lose all your trading capital through one wrong move. This year, some stocks have been delisted and some notable companies have either declared losses, been suspended from trading, or reduced or completely shut down operations in the country. All these can have a negative implication on their shares and market performance.

For other instruments such as fixed deposit and treasury bills, whilst they are interesting opportunities and majorly, safe investment options, they typically offer returns (20% to 24%) that are less than the inflation rate (conservatively set at more than 33%).

That’s where strategic real estate investment comes in. We will list out some opportunity areas that you can explore and if interested, maximize. It is also important to do your own research, apply due diligence and where possible, consult with a professional which can be a lawyer, a real estate professional and/or an investment adviser.  

1. Speculation and Capital Appreciation (Buying low and selling high): Property prices typically always go up as housing is an essential need with high demand. For instance, our Surulere project (which houses the largest parlour, dining and kitchen for a 3-bedroom apartment on the Mainland with a gym, sports centre and shopping plaza) has moved from N75m to N94m in less than a year with further opportunity for price appreciation upon completion and commissioning expected in December. There are strong indications that prices will appreciate further to N105m within the 1st half of 2025.

2. Buying off plan: Buying a property before it is completed helps to secure it lower than its market value when demand is still low, and concessions are being made by the builder/developer. Such a price is usually more promotional than a true reflection of the property’s earning potential. For instance, the Surulere project has appreciated by over 200% from inception at off plan stage in 2020 till date. With 1-to-2-year payment plans, there are multiple projects to explore across the Lagos Mainland and Island areas. A 1-year payment plan with 25% down-payment has now been launched for 3-bedroom apartments with a gym, swimming pool and a furnished kitchen etc. in an estate in Iponri, Surulere for delivery in December 2025. If you do not have all the money upfront for a property, an off plan project can be an option to explore to secure a home.

3. Rent: Rent can serve as a steady source of income whilst preserving the value of a property which can later be sold or passed on to children as a legacy. Some people buy properties as an investment for their children/family members and register them with lawyers/asset management companies for future transfer when their children have reached milestone ages. Having properties in your name can serve as collateral to help you secure financing from banks and reduce the bureaucracy and administrative bottlenecks that comes with transfer of assets from to family members.  

4. Long term leases: These are becoming common as a housing solution and investment option where ownership of a property is given to the buyer for a 10-, 15- or 20-year period. In this case, initial owners can get properties at a fixed rate over a long period where it is likened to paying rent in bulk at a fixed rate that cannot be increased. These owners either choose to reside there or sub lease the property and earn their returns over the long lease period. The advantage of this option is that it provides very affordable prices compared to the properties with outright purchases and full ownership. From between N13m and N20m, you can get either a studio apartment or a 1-bedroom apartment across different locations on the Mainland for a 20-year lease.

5. Short lets, serviced apartments and AirBNB: Especially in areas where hotel presence is limited, short lets have become a fast rising option for many. Users typically like the privacy, convenience and cost efficiency that comes with having your own kitchen and preparing or directly purchasing your own food. It can also serve as an effective option to accommodate friends and family in a shared facility rather than be restricted in terms of space and the lack of a central dwelling area in an hotel.  Some short lets are within secured and gated estates/communities where users can enjoy common facilities like a lounge, gym, sports centre, clinic, pharmacy and shopping plaza at no additional cost. Averagely, depending on the property, short lets deliver much more than your annual rent and give the best return when managed well. Prices can range from N47m to N64m for a 1-bedroom apartment, N60m to N75m for a 2 -bedroom flat, and N75m to N110m for a 3-bedroom flat depending on the location and the extent of finishing and furnishing.  We have a free seminar on setting up short lets, serviced apartments and AirBNB coming up on Friday 22nd November 2024 on LinkedIn. Click the link to register and join:  https://www.linkedin.com/events/moneymakingopportunitiesfromsho7247344466863247362

In terms of financing, mortgage options also exists where the buyer raises at least 30 percent of the total value of the property and the bank pays the balance to secure the property. The buyer then pays the bank within 1 to 10 years depending on the agreed tenor. This helps buyers access opportunities when they arise and avoid the impact of inflation and property price increases in the future. You can also leverage on your pension/Retirement Savings Account or the National Housing Fund to help secure a home. Family and friends can also pool money together to own properties as well as cooperative societies on behalf of their members/co-employees.

The earth is limited in space and with the increase in the world’s population, more property will be required to provide housing solutions for all. Lagos for instance, is the smallest state by size but has a high population density and a large housing deficit with consistently increasing demand for properties and a resultant high level of property price appreciation. With as low as N13m, you can be a property owner and begin your journey towards financial freedom. You can thing big but start small and take small steps towards your big dreams.

You can benefit by attending our free seminar on Money Making Opportunities in Real Estate on LinkedIn where we will talk about investment opportunities, optimal rental income, short let, property speculation and other opportunities in Real Estate on Friday 22nd November 2024. To register and join, visit: https://www.linkedin.com/events/moneymakingopportunitiesfromsho7247344466863247362

• ▪ To see our portfolio of properties, spread across Ikoyi, Victoria Island, Lekki Phase 1, Lekki Ajah corridor (Ikate, Osapa, Chevron, Ikota, Ajah etc), Surulere, Yaba, Gbagada, Ikeja, Ilupeju, Magodo, Omole, Ogudu and other areas, you can visit: https://197283.estateagentsng.com/
• ▪ To chat on WhatsApp for enquiries and more details, you can click the link: https://wa.link/d8niuf
• ▪ To speak to a consultant and get advice and a free consultation, or schedule an inspection, you can call 09037628062

The best time to buy a property was yesterday. The next best time is now. See you at the next Home Owners’ and Land Lords’ meeting!