Buying Investment Property Lagos Nigeria - Free Tips For Buying Investment Property

buying investment property lagos nigeria africa

Buying investment property Lagos Nigeria - Investment property buying is a great way to invest in Nigeria real estate. And this strategy works well whether you're investing in Lagos real estate or Nigeria property anywhere else in Nigeria.

To understand the benefits of buying investment property, you first need to understand what investment property really is.

So, what is investment property?

Investment property by definition is property that is bought with the goal of generating income from the property.

This is the very reason why investment properties are the prime target of real estate investors.

Yeah, real estate investors are keen on recouping their investment as fast as possible. Therefore, buying investment property . . . buying property with the potential to generate income . . . suit their needs.

However, there are two sides to investment properties. The first is what I have just discussed above . . . the act of buying property with the goal of generating profit from the property.

So, what is the second side of investment property?

Well, the term investment property is also used in relation to property that is bought because of the potential to increase steadily in value over time and become a steal . . . a property that eventually sells at a value several times the value it was bought.

In simple words . . . the second definition of investment property is property that is bought because the buyer wishes to hold the property for a period of time in order to appreciate in value and then sell off at some time in the future for profit.

Now that you understand the two sides of investment property, the next natural question is, what are the factors that should be considered when buying investment properties?

I provide some helpful tips below.

Free Tips For Buying Property That Generate Income

Properties that generate income will most likely be rental properties.

These rental properties may be . . .

apartments for rent

land for rent or

functional hotels that generate income

Take note of the following when buying these types of rental properties:

1. Use the home inspection checklist on this site to very that your investment won't depreciate in value over time

2. Understand the rental price for the area where the property is located

3. Ensure the property is trouble-free and that the title is good

4. Get it at a good price. Good price translates to good payback period. And the payback period is the number of years it takes to recoup your investment. Usually, this should be between 17-25 years.

Free Tips For Buying Nigeria Real Estate For Long Term Investment

Buying investment property with the goal of leaving it to appreciate in value and then selling it at a much higher price in the future translates to buying land.

This concept also pre-supposes that the investor is buying the land very cheap. For this to happen, the investment property will most likely be located at the outskirts of the city where there may or may not be basic facilities like electricity, water, or good network of roads.

Of course, how terribly undeveloped the land is depends on how cheap you want the land to be. And for how long you wish to hold the property before selling.

For example, if you're thinking of buying investment property (in this case, investment land) in an area that has prospects of good selling price in 5 years time, then you will likely look at an area closer to town.

On the other hand, if you're looking at buying for keeps over the next 20 years, then you can go further away from the city and buy dead cheap from the native communities.

Let's summarize the factors you need to consider when buying investment land. They include:

1. The time frame you wish to hold the property before selling off

2. The expected growth in investment over the time frame

3. The price at wish the owner(s) wish to sell

4. The true title holder of the property (the natives or someone who bought from the natives) and

5. The market assessment (or perception) of the neighbourhood, town, or village

Buying investment property is a great way to save money and grow money.

My advice?

Don't miss an opportunity to invest in Lagos Nigeria real estate when it presents itself. You will need money from that investment someday in the future.

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