Why you must consider Real estate investments in Nigeria


Why you must consider Real estate investments in Nigeria

A lot of people in the country

It serves an Hedge against inflation.
You only hate inflation if you don’t have an asset that is inflating. Inflation is increasing the values of your properties hopefully faster than any input costs and the costs to operate the asset. Some people used to think back in the last 2 decades how ridiculous it was for anyone to pay N50,000 to purchase a plot of land in the Ajah area of Lagos State. Today, the same one plot of land is over N30M. Inflation is a powerful economy-controlling force that’s difficult to stop. You would rather want to own inflating assets rather than be on the receiving end of the inflation effects.
Rising above the economic rise-and-fall.
When times are good, assets tend to inflate quicker due to higher employment, rising wages, and rising corporate profits leading to more demands on properties. Real estate tends to be a major beneficiary during a bull market. Forget about protecting yourself against inflation, owning real estate is a gainful opportunity to make money with inflation. If there happens to be hyperinflation, your cash is devaluing rapidly whereas your real assets start surging in value. When economic tightness returns sooner or later, it causes another surge in property prices.
Real Estate makes a good Generational asset.

In an African environment, parents are are expected to leave an inheritance for their children, thereby making the children’s lives a bit easier. If you can buy a property to live and enjoy,
and then pass it down the family to give your children a heads start, what an amazing gift you’ll provide. Think about our university graduates nowadays who are complaining they might never be able
to afford owning a home like their parents due to exorbitant prices. Now think how much worse it will be for their children. Everybody has heard a story of some grandparent buying a home for just
N20,000 that is now worth millions of Naira. But besides working hard, a massive generational wealth transfer should help support future generations.
Reduced effort to build wealth.
The idea behind investment is that assets work for you, and not the other way round. Real estate is a relatively easy business to understand compared to investing in stocks. For instance, on a rental property, good location, good tenants, manageable maintenance, and rental growth are all it basically takes to make for a solid real estate investment, whereas stocks have so many more variables to deal with, including: management credibility, industry growth, competition, politics, regulation, tax policies, inventory turns, margin analysis, operating profit growth, and more.
Meanwhile, to turn N100,000 into N500,000 through equity investing is no easy feat, neither is making an interest of another N400,000 on the deposit into a Bank over 7-8 years, Paying on installment with no interest. For people paying on a property over a period of time on installment, the rate is fixed and the payments don’t change. 3-4 years from now you might be paying the same amount that isn’t worth as much as when you first took out the subscription for the property on installment. As your net worth grows, the amount you pay monthly or so becomes a smaller part of your overall net worth, thereby reducing any feelings of stress associated with paying for the property, all as long as you’re in contact with a consultant who has expert knowledge; (Speak to us: info@aridanhomes.com / Aridanhomes.com).

Passive income
Investing in residential or commercial property for investment purposes is a time-tested way of enjoying passive income alongside capital appreciation. The location and condition of the property are of significant importance for you to realize stable rental income far into the future. Seeking appropriate advice from reputable real estate companies will give you the best chance at success. It is an investment you can see, feel and touch, giving you a sense of accomplishment and success.

for more info, visit Aridan Homes Now

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