How real estate can actually improve your wealth in Lagos

How real estate can actually improve your wealth in Lagos

When we talk about different opportunities to invest and build wealth, we’d likely get diverse options such as; buy shares, stocks, invest in a fixed-income investment, buy cryptocurrencies and of course, real estate.

 

 

 

Unlike these other assets that you can easily convert to cash, it takes a longer time to sell a home or land. The truth is that there is no overnight or quick way of making money in real estate but investing with a mid to long-term strategy in mind.

 

 

 

Like any other business, real estate has built wealth for several people, but on the other hand, some people have also lost money (due to wrong investment decision).

 

 

 

Now, let’s look at how you can improve your wealth in Lagos by investing in real estate rather than lose money.

 

 

 

There are several ways to make real estate money in Lagos, but two are popular amongst investors;

 

 

  1. Buy land in nascent locations with prospects in the nearest future; or
  2. Own a home for short-let.
 

 

 

While its no news that the first option has been popular for over a decade (especially since the explosive growth of real estate prices in Lekki), the second option became popular during the 2016-2017 Recession (though investors have been earning from short-rentals as far back as 2008).

 

Yes, it sounded strange back then to short-let your apartment when there were hotels to lodge in, but you know the saying that there is nothing new under the sun (meaning, it’s always been in practice).

 

 

 

As early as 2008, you could short-let a Three-Bedroom Apartment in Ikoyi for N40,000 per day and a Two-Bedroom Apartment in Oregun-Ikeja for N10,000.

 

 

 

The last recession opened up more short-rental opportunities in prime locations like Victoria Island, Ikeja, Surulere, Ikoyi, Lekki Phase 1, amongst other neighbourhoods.

 

 

 

Over the last 14 years, we’ve had three financial crises (2008, 2017 and 2020) that affected Nigeria’s economy and the local currency. However, it’s also been one of the best periods for land investment in developing locations like Ibeju Lekki, Sangotedo, Ikate, amongst neighbourhoods.

 

 

For instance, if you had bought land in Ibeju Lekki worth N552,500 in 2007, you would be over a 4.9million naira richer today because land prices grew by 19% yearly between 2007-2020.

 

 

 

Also, in Sangotedo, land prices went up by 19% yearly between 2008-2020.

 

 

 

A similar trend happened in Ikate between 2007-2020, where land  prices went up from 10.7million in 2007 to 94.2million naira last year (that’s a yearly growth of about 18.2%). 

 

 

 

The secret to making wealth in real estate is to have a long-medium term strategy (if you’re buying land) and a medium-term strategy for short-rental properties.

 

 

 

Though short-let properties give better cash-inflow overtime, buying affordable lands in strategic locations will also give you great capital-gains in the long run.

 

 

 

So if you want to make real estate money in Lagos, you should consider these two options.

 

 

 

 

Should you be open to real estate opportunities in Lagos, send an email to hello@debokadiri.com.

 

 

 

Or better still, contact me on WhatsApp at +2348090978012 to invest in a Two-Bedroom Home (with great projected cash flow) for $32,530 (₦13.5million).

 

 

 

 

P.S: You will also be interested in a Land Offer worth less than 2million naira ($4,820).

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