Benefits of Real Estate Investments in Nigeria Published on 2021-10-26 If you are considering making a low-risk investment in Nigeria, consider investing in real estate. This post highlights the benefits of real estate investments in Nigeria. What is real estate? Real Estate can be defined as any property i.e building, that is situated on a piece of land and the natural resources attached to it. Real estate also connotes the legal rights a person or group of persons have over the use and ownership of the real estate. What are real estate investments? Real estate investments are investments in the purchase, sale, lease, or development of real estate property in order to make a profit. The Real estate sector has witnessed a good amount of growth in Nigeria over the years. For a nation whose economy relied on agriculture in the past and now oil, development in the real estate sector seems like a breath of fresh air giving the dwindling performance of the oil sector. The Real estate sector contributed 8.7% of Nigeria's GDP in 2014 and by the first quarter of 2021 has already contributed over 5% to the country's GDP. This shows that the development in the real estate sector is important to growing the nation's economy. While most sectors all over the world were affected by the COVID-19 pandemic, the real estate sector was unaffected. People will always need accommodation and the real estate market has no opening or closing time. Investments in real estate provide certain assurances that are not found in other forms of investment. Unlike investments in Cryptocurrency and Foreign exchange, Real estate is a less volatile form of investment. Benefits of real estate investments in Nigeria: The value of a real estate property increases over the years 1. Real estate investments are low-risk investments Due to the low volatility of the real estate market, risks involved in investments are little and can be insured against. Investors can take out comprehensive insurances on their property to cover certain losses. 2. Real estate investments provide financial stability for investors Profits in real estate investments are not immediate and may take a period of years to come by. What they guarantee, however, is passive income. Investors can receive passive income in the form of rent from residential and commercial real estate properties put on rent or lease. 3. The value of a real estate property increases over the years An increase in the value of a property depends on the physical attributes of the property, location, and improvements carried out on the property. These factors help in increasing the monetary value of the property, whether in the form of rent or outright sale. 4. Ownership of real estate can be leveraged to secure loans from banking institutions Real estate assets can be used as collateral to secure loans from banks in order to execute other business or investment projects. 5. Real estate constitutes an asset rather than a liability Assets are properties owned by a person that increases in value. Liabilities are assets that reduce in value or cost the owner money. Real estate investments unlike cars are assets that appreciate in value while cars are liabilities that depreciate in value. Ownership and rights in real estate can be passed down from one generation to another. Investment options available in the real estate sector include: 1. Development of rental properties: Although this is a capital-intensive venture, it, however, guarantees passive income. Investors can develop residential or commercial properties and put them up for rent for a duration of time. The investor receives rent as payment for the use of the property. 2. House Flipping: This is a form of real estate investment where investors purchase old properties, renovate them, and sell them for a higher price. This would require the use of professional valuation experts to help determine the open market value of the property before renovation and after renovation. 3. Real estate investment trusts: Popularly called REITS, it is set up by corporations who help investors purchase, operate, and manage properties. 4. Real estate investment groups: Enable investors to purchase units of apartments in developed properties and lease them out. The investment group handles the management and advertisement of the properties or estates. Author Olatunde Ogunbiyi Add comment 35 Comments on Benefits of Real Estate Investments in Nigeria ... By Atinuke Naomi · 2 years, 1 month ago ??Explanatory enough Olatunde Ogunbiyi says: @Atinuke Naomi Thank you 2 years, 1 month ago Reply By Adriel · 2 years, 1 month ago Really self explanatory and enlightens too Olatunde Ogunbiyi says: @Adriel You are welcome 2 years, 1 month ago Reply By Daniel · 2 years, 1 month ago This is quite insightful! Thank you Olatunde Ogunbiyi says: @Daniel You are welcome 2 years, 1 month ago Reply By Olatunde Ogunbiyi · 2 years, 1 month ago Great Reply By Horbarmar · 2 years, 1 month ago Impactful and full of insight Olatunde Ogunbiyi says: @Horbarmar You are welcome 2 years, 1 month ago Reply By Federal leay · 2 years, 1 month ago So well explanatory Olatunde Ogunbiyi says: @Federal leay Thanks 2 years, 1 month ago Reply By Boluwatife · 2 years, 1 month ago Well detailed Real estate investment is another great investment after technology. You can't run out of people who need accommodations so badly or a nice house after retirement. This is a great one Mr olatunde Olatunde Ogunbiyi says: @Boluwatife Awesome view, i think you just gave me a good idea for my next article. 2 years, 1 month ago Reply By Oluwole Oluwafemi · 2 years, 1 month ago Real estate investments provide financial stability for investors. Olatunde Ogunbiyi says: @Oluwole Oluwafemi You can never go wrong with real estate, except your property is poorly managed. Even with that, u would still make profit on outright sale. 2 years, 1 month ago Reply By Opeyemi Akinremi · 2 years, 1 month ago This is profound. Real Estate is an investment plan more people need to explore Olatunde Ogunbiyi says: @Opeyemi Akinremi Exactly 2 years, 1 month ago Reply By Oluwadamilola Ilesanmi · 2 years, 1 month ago This is explanatory enough Olatunde Ogunbiyi says: @Oluwadamilola Ilesanmi Thank u 2 years, 1 month ago Reply By Tobi · 2 years, 1 month ago Real estate investment comes with low risk and high return. One of the best investments to go in if one have the capital. Olatunde Ogunbiyi says: @Tobi Thanks sir. 2 years, 1 month ago Reply By Anonymous · 2 years, 1 month ago Well detailed, nice Olatunde Ogunbiyi says: @Anonymous Thank you 2 years, 1 month ago Reply By FALADE Oluwadara · 2 years, 1 month ago What an insightful write up and nice presentation... Considering things tho Olatunde Ogunbiyi says: @FALADE Oluwadara Thank you 2 years, 1 month ago Reply By Anonymous · 2 years, 1 month ago Real estate no doubt has lots of unfathomable advantages..from favourable payment plans to the security of having a home to even financial security for some that are investors..well done sir for this wonderful piece Olatunde Ogunbiyi says: @Anonymous This reply sef sweet pass the post ? 2 years, 1 month ago Reply By Muby · 2 years, 1 month ago Awesome content Olatunde Ogunbiyi says: @Muby Thank you 2 years, 1 month ago Reply By Maikudi Jubril Ibrahim · 2 years, 1 month ago Informative Olatunde Ogunbiyi says: @Maikudi Jubril Ibrahim Thanks 2 years, 1 month ago Reply By Precious · 2 years, 1 month ago Na to get small money invest na him remain now o. Reply
