A real estate investor, Lanre Howells, Managing Director, Messrs Beyond Building, has urged Nigerians to move towards a growth that could make them grow wealth exponentially by investing in real estate without necessarily owning a home.
He explained that 20 people could own a stake in an estate with the profitability of the investment shared among them.
According to the real estate investor, their approach to market is that not until an investment is made on a single person’s name alone, rather, when a portion of a single individual’s money combines with that of others, in a collective name, required profit can be made.
In addition, he hinted that real estate has become a viable platform for growing wealth as about 90 per cent of millionaires in the last two decades made money through the industry. The problem, he however disclosed, is what he referred to as the landlord syndrome, whereby people are positioned towards becoming landlords, but not from the profit point of view; this, according to him is an issue.
“We help people to grow a little money towards owning a property. You can grow in real estate from the dividend of an investment through trading rather than having the huge capital tied down. Our firm seeks to partner people who have the ideology that they could grow wealth from the little they have to own their own homes and be free from oppression of landlords in the city.
“We also structure a mortgage for our investors based on what they have. Real estate is much more than acquiring property or a particular house, you can do multiple trading within the sector without going through stress. Today rent masters have a training platform where people can put their money by making a certain payment from quarterly to yearly. We have some other real estate projects that are short-term investment inclined.”
Howells highlighted that they believe that a real estate investment without a clear goal, would lead to bankruptcy and that their firm pioneered a modernized farm estate for farmers in Nigeria, where farmers don’t have to live like paupers anymore. One of the secrets of the most successful real estate investment, he disclosed, is to buy land on the fringe of development at an incredibly low price and exercise a little patience for capital appreciation.
On the need for social housing in Nigeria, he confessed that government should put in place the right infrastructure and policies for private sector investment in the sector.
“If government had put in place the right infrastructures and policies to encourage private investors and the practitioners, they would source the fund for building. Sometimes, most of the projects that government is driving, come with a lot of backroom arrangements. You have government estates everywhere and some have been developed for over 30 years and they are empty while people need housing.”
Some of the firm’s investment initiatives include Marvella Court for low-income group, King’s Point Estate for the high-end market; Varden Farms and Resorts for people looking forward to investing in farm estates. Each of the initiatives, he said, has at least, 20 per cent returns on investment.