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Returns on Real Estate Investment

Like every other aspects of life, the law of sowing and reaping also applies to returns on real estate investment. It is natural, universal and immutable. We simply reap what we have sowed; this is how the good book puts it.

Today, let’s take a good, closer look at returns on investment in real estate, as far as the business is concerned.

When we talk about returns on real estate investment, we are basically talking about profit, value appreciation, income, revenue, money, good fortunes and high demands for our products, goods or services.

Returns on Real Estate Investment - Move to Ibeju-lekki

Reflect on this: In March 2015, Reality Point Limited, a real estate company operating in Nigeria with a global reach offered a plot of land for sale somewhere around Ibeju-Lekki area for N2,950, 000 per plot.

Now, the same plot is now going for N3,590,000 per plot!

The 22% appreciation of  N640,000 within the short period it happened may not seem significant but the catch is that the cost of the plot is expected to be spread over a minimum of 25months.

With this appreciation, the initial amount required to start this investment will be N250,000.

More so, it is expected that within a period of 25months of doing this investment, the price of a plot for new sales is expected to have reached N5,000,000 at the least.

That is 80% appreciation from the start up price of N2,950,000. This certainly proves that there is guaranteed good returns on real estate investment for budding investors.

Like any other investment and return cycle, the amount you invest in real estate is directly proportional to how much money you make or lose in the project.

The Japanese will say “good thinking, good product” but we can also say “good money, good returns”.

I heard from a reliable source about Terry G’s numerous real estate investment. I also remember reading in The Punch newspaper about Ajegunle-bred singer, Friday Igweh, popularly called Baba Fryo, diversifying into buying and selling of land.

Quoting him “I have many Omo Onile as friends. So, when I developed interest in the business I approached them and it did not take long before I started.

Since lands appreciate, I buy them and leave them for some time. The prices range depends on whether the person wants a plot, half plot or acres”.

This underscores the fact that returns on real estate investment is not an exclusive preserve of any class of persons provided you are ready to go the right route.

The “Denge Pose” singer adds that his location areas for the purchasing and selling of lands are Ojo and Badagry.

If you do your business in the sub-urban and make good return on your real estate investment, just imagine what it will be like in prime areas.

Highbrow areas generally command better returns. Which is why buying at Ibeju-Lekki puts you on a platform for good returns on your investment right now.

You may ask why. These areas have high demand. You will agree with me that the demand on properties for various uses is enormous in fully developed areas.

It’s good to target A-list areas for solid property investment, and Ibeju-Lekki is a prime location right now. But while you target the A-list in your quest for good returns, don’t forget that the bulk of the world’s spending comes from the bottom of the pyramid.

It is a case of aggregate sum of the poor. Therefore, while investing for the rich, note that real estate investment for the masses also can fetch good returns – this is me also making a case for Roseberry Estate, Alapoti-Agbara, just in case you are not ready for Ibeju-Lekki.

It is usually said that even in socialism, there is money to be made. The most important thing is to take the appropriate steps to ensure you come out with desired results, matching funds with knowledge.

To your success!

 

Debo Adejana

MD/CEO Realty Point Limited

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