How Nigerians Abroad Can Invest Safely In Real Estate
How Nigerians Abroad Can Invest In Real Estate
It is now clear that Nigerians abroad can invest in real estate, after having several discussions with my Nigerian clients abroad on how he can actually benefit from Real Estate Investment here in Nigeria using the Land Banking Vehicle.
I decided to write on this topic: How Nigerians Abroad Can Invest In Real Estates and treat it once and for all for other Nigerians in the Diaspora who can also benefit from it.
My real estate services include:
To help you identify safe land in strategic places in Lagos within an estate with available plots to buy.
Help you process your application for such land and make sure you get your documents after payment.
Help you follow up with the estate developer should you have any concerns later on and make sure your concerns are addressed.
Keep you up-to-date about new development on the land.
Rinse and repeat. Helping you over time build a solid property portfolio in Nigeria.
How does this benefit Nigerians Abroad?
A lot of Nigerians who are based abroad either in UK, US, ITALY, SINGAPORE, CANADA etc find me
either through a search, they did online or through a referral from another client.
People abroad are looking for how Nigerians abroad can invest especially in real estate opportunities to put their money back home and there’s no better investment opportunity in Nigeria that offers better returns and stability than the real estate industry. Land never depreciates.
The worst that can happen is that the price can remain constant for awhile. But usually we see good price appreciation especially when you focus your investment in strategic places, you can Google it and see.
Land Banking and Flipping in Nigeria and why it works better for those abroad
First what is land banking?
Land banking is the practice of purchasing undeveloped land with the intention of holding on to it for a period of time and selling it at a profit at a future date.
There are different real estate investments you can do and make good profit from including renting. However land banking is the only real estate investment strategy that requires zero time and effort. All you have to do is make good buying decision and then wait. And in a few years or more cash out big.
Instead of depositing your money in the bank where you make like 3% in a year, why not simply deposit your money on landed properties where you can get between 25% to over 100% appreciation in a year.
Anyone can do land banking and flipping and make good money from it. But it’s even better
for those based abroad because since they don’t live in Nigeria they are more patient to leave
the land to triple its price before selling.
And the years does seem to fly by quickly when you’re not paying attention.
Apart from that the currency abroad has more value that the currency here in Nigeria in terms of exchange of value.
Therefore, Nigerians abroad can invest in acres of land here in Nigeria when the currency is converted to Nigerian currency which gives you an advantage that stays abroad.
How Nigerians abroad can invest in land Banking Strategy that works .
For you to be successful with land banking, you have to apply a strategy to it and the strategy is simple. Only buy your land in an area that has indication for a good price appreciation within a few years,
where there is going to be future rapid development, where things like bridges, road, airport, commercial infrastructure, commercial activities, business etc are likely to come up.
How do you know a land that has the potential for a high return on investment?
Look at the financial status of people who live in the area. You can easily tell this by checking the current cost of housing there. Be careful here though, the higher the cost of living doesn’t always mean better appreciation.
You want to make sure that the area isn’t already at its peak for property appreciation where it can now only appreciate with 1% or less every year.
Example of such areas is Lekki phase 1 and Victoria garden city. Investing in those areas now will live you in debt and give very little returns. The time you should have bought into those areas was 10 years ago, now it’s too late.
The places you should be investing now with a very fast growing cost of housing are Sangotedo, Abijo and Ibeju Lekki Axis.
For example rent in Lekki Vale Estate which is just opposite Opposite, the New Lekki International Airport Ibeju Lekki Lagos cost about N5.5million per land as at July 2019 when this article has been written.
Fortunately for you, there are still some undeveloped lands behind Shoprite and within a few minutes drive from Shoprite. Developers are picking them up quickly now and some are starting to develop. Even though some will think they are expensive now they are just starting.
If you buy now you are positioning yourself for a quick high return on investment. I guarantee you this!
How a few clients turned N8.4million to N16million in 17 months through Land Banking.
From some of the undeveloped lands behind Shoprite, our fastest growing estate developer Landwey, bought some and named it Westwood Park Estate. When Westwood Park estate was opened for sale in early 2017,
it was selling for N8.4m but clients who were interested saw it to be too expensive. After convincing the client that it was a good buy the land was bought.
Within a year Westwood went from N8.4million to N14million. And the best part? It is sold out! And when it did we still had people lining up to buy.
There was a particular client who was desperate for a plot in the estate and asking to be considered, but there was no more plot to sell.
After a while, Westwood reopened 10 plots for sale at N16million a plot, from those who want to sell their plots.
Now a few clients regretted why they didn’t buy more than one plot. Imagine if they had bought 2 or 3 plots, the returns on the investment it would have had.
Some are still holding on to their plot. I am sure after a few more years they can sell their plot for as high as N30million.
Why the jump in price in such a short time? The answer is Location and Estate development.
The only reason the undeveloped lands don’t currently sell for N30-40milion is that they are not yet developed. But once they start to develop them, they will jump in price especially if they are built to the same standard as Emperor estate as they are in the same neighbourhood.
So there is still a lot of room for Westwood price to grow. With the infrastructural and amenities planned for Westwood within the next 2 years, it should compete with Emperor Estate in price.
Truth is, this kind of quick high returns doesn’t happen every day. But it can happen with every of your land investment if you’re very strategic about the lands you buy, which as I have said is necessary to do really well with land banking and flipping.
If you want this to happen for you with every land banking you do then choose a good location and buy from a progressive estate developer like Pragmatic Homes Limited’s success wasn’t a stroke of luck, another of their estate called Berry Court, Omole Phase II Extension (https://www.vicbonhomes.com.ng/property/berry-court-omole-phase-2-extension/) appreciated quickly too. The allocation is made once payment for the plot of land has been made in full (inclusive of payment for the deed of assignment and survey plan).
When you want to buy land within the Sangotedo and Abijo axis now pick an estate that is still upcoming, without any built houses inside it so you give the land room to appreciate continuously at a price as the estate is being developed.
Make sure too that you buy from an estate that will deliver good infrastructure and amenities, otherwise your land will never be worth as much as luxury neighbouring estates.
For right now the estate I recommend within the Sangotedo/Abijo axis to invest in for land banking is Southern Gate Commercial
It’s still coming up and has a long way to go in terms of development and therefore price appreciation. It’s the fastest developing estate from Landwey so far, ready to build.
Other Places to Invest in Land banking
Other places to invest in land banking are places with great landmarks. And right now that place is read more. Ibeju Lekki is the fastest developing area in Nigeria as a whole right now.
Ibeju Lekki is where you have the Lekki Free Trade Zone, Dangote refinery, Proposed airport etc.
Right now a major part of Ibeju Lekki is still undeveloped. So lands are still selling cheap. It’s the right time to take advantage and bank some plots before it is developed and prices skyrocket. Think of Lekki Phase one 10 years ago.
Right now land with the good title within an estate in Ibeju Lekki sells between N2.350million to
N6million a plot.
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