“Operators in the real estate sector have advised business minded Nigerians to extend their investment tentacles to the development of the industry as it is more lucrative to invest in the real estate business.”- The Tide
Speaking to newsmen, a real estate consultant, Dr Michael Jaja said that the nature of real estate investment makes it difficult to state with certainty that a particular type of business is the best but assured that investors would not waste their resources and time in investing in the real estate business.
Jaja stated that there was need to invest wisely in property development to cushion the effect of the recession
According to him, investors can consider commercial buildings such as hotels, office complexes, shops, warehouses or industrial layouts. Commercial properties often command higher rents. If they are in some specific locations, the income generated from rents can be so enormous that such investor can make his profit within 10 to 20 years period.
As he puts it, “you can also buy a parcel of land at the right location at the right time. This form of real estate investment is easy if one has enough cash to buy the land, noting that there are many areas, especially in the outskirts of town, where land is still available at a reasonable and affordable price.
He stressed that one does not need money for development, rather, the patience to wait for it to appreciate before it is being sold.
He further said that if one does his homework before buying, making money from a land purchase is simply a matter of time.
Another form of real estate investment worth considering, according to Jaja, is rental property. To him, there is intense demand for residential property which earn investors regular cash flows.
He said that the value of one’s property also keeps increasing, noting that such person can decide to hold on to the property or sell it in order to make more profits.
On the rental of property, he stated that rental property can be designed to meet the needs of the low, medium or high-income earners in the society, maintaining that the design of the building can be a single room, a self-contained room and parlour, a two-or-three-bedroom apartment or perhaps duplexes.
Another property developer and consultant, Engr. Calista Duru warned that the investment has its own downside.
Duru said that in Nigeria, a potential investor needs to ensure that he has contractual, legal and effective ownership of the land.
She said, “It is important to ensure that you are not buying a land that is under government acquisition. You need to ensure that you have all the legal documents signed and registered. In addition to all this, you can take possession by fencing the land”.
According to her, “the rationale for this is the sheer lawlessness of traditional land owners who often trespass on people’s landed property. The illegal actions by these people often result in litigation and loss of property. “A good title and effective possession often make it hard for them to trespass,” she submitted.
Source: The Tide