Commercial Real Estate Investing Lagos Nigeria - Free Commercial Property Investing Tips

commercial real estate investing lagos nigeria africa

Commercial Real Estate Investing Lagos Nigeria - This commercial property investing guide provides free guidelines for investing in commercial real estate.

The first obvious question is . . . What are the key factors to consider when it comes to commercial real estate investing?

To answer that question, it makes sense to first consider why commercial property investing is attractive.

So, what is the attraction of commercial real estate?

Commercial real estate is attractive to Nigeria real estate investors because it has potential for . . .

1. Higher growth in rental values year on year

2. Higher growth in sales value year on year and

3. More consistent rent payments by tenants occupying the facility

The truth is . . . commercial real estate often turn out to be properties in strategic locations. And since the locations they are situated are strategic, they attract good rental and sale value.

Back to factors to watch out for when considering commercial real estate investing.

There are certain factors to look out for when targeting commercial property investing. And they are . . .

1. The location of the property

2. The proximity to a major road

3. The Payback period and

4. The land title

Commercial Property Investing - The Location

A commercial property has potential to become an expensive commercial outlet or facility if it is located . . .

At the entrance of an estate or on the road leading into an estate

In an area designated as commercial business district

At the beginning of a cross-junction (or 5-junction)

On a business road or

Near a bus stop

If you can lock into this locations or buy property in such locations while the area is still developing, you can get in dead cheap and become very rich when government does its magic.

What government magic I'm I talking about?

"Government magic" is a term that refers to facilities that the government has the financial power to provide.

For example, governments have the responsibility to . . .

Provide tarred roads

Railway facility

Subways (and transportation facilities in general)

Electricity and

Pipe borne water

If your commercial real estate investing strategy includes buying properties cheap in areas that do not already have these facilities, you stand a chance to reap a high return on your investment when government begins to provide these facilities.

Proximity To A Major Road

If your commercial real estate investing efforts eventually gets you to buy a property on a major road, a road that may eventually become an express road or a four to six lane road, be careful to understand the government regulation on distance of buildings from the road.

At one time, government required that buildings be at least 30 metres from a major road. If your building was closer to the road than that distance, you get a warning message from the federal or state government.

If you don't move your house, the government will help you move it with their caterpillars.

Looking at commercial real estate investing for properties on major routes?

Watch the distance of the house from the road!

The Payback Period

The payback period is the time it takes to recoup your investment on the commercial property you intend to buy.

Payback period for established locations are usually in the range of 20 - 30years whereas payback period for developing neighbourhoods can be as high as 60 - 70years if you build the house yourself.

Now, 60-70 years sound like a long time to recoup your commercial property investment. Perhaps you may even be dead by then

However, it is important to note that if your commercial real estate investing strategy is to buy cheap and sell high several years later, then you may have to live with this long period. (Further insights on this is discussed in the section for payback period).