5 reasons to invest in real estates in Lagos, Nigeria

Real estate investing is a profitable business worldwide. The only investment that comes close in profitability and sometimes beats property investing is stocks investing.

So, there's no doubt about it . . ..

 investment in real estate pays big time. And unlike stocks, it's a far more stable commodity to trade in.

Real estate investment Lagos Nigeria is far more profitable than elsewhere because this is an emerging market. And there is little or no government regulation in terms of pricing and property values.

Consequently, you stand a chance of making big money if you invest right.

Here are five reasons why you should give real estate investing serious thought.

5 Reasons Why You Should Get Into  Property Investing

1. Property values appreciate fast

Property prices in Lagos  Nigeria is constantly rising. For example a colleague bought a land in Lekki for 5 million naira. About five years later, the same land was worth 48 million naira+.

Property owners and landlords are constantly increasing prices and rent. Therefore, any money you put in Lagos Nigeria real estate is money well invested.

2. Lagos Nigeria is the commercial nerve centre of Nigeria.

 It is the centre of commerce. Businesses are everywhere . . . and more are coming. More businesses mean better standard of living. And more people ready to buy property.

3. Lagos Nigeria is constantly expanding.

Lagos recently attained the mega city status. This means that property you're buying that appear to be in the suburb, may soon become a property in a commercial neighborhood.

That means more money for you because properties in that area will appreciate in value faster than you imagined.

4. There is a ready market

Property ownership is considered to be the ultimate achievement in African societies. You're not considered to have attained something concrete unless you at least own a house.

This is good news for you the property investor. It means you will always have ready buyers. Cool, right?

5. Money lose value over time.

 If you keep your money in a bank, inflation will eat away its value. Ten years from today, that huge amount you have in your bank account will be worthless.

However, if you invest it in real estate, your investment will take care of your retirement.

Real estate investing is actually a two-edged sword.

It helps you save money

It grows your money

A Word of Caution

Do not jump into property investing. First speak to an investment expert.

A Lagos Nigeria property investment expert will carry out a property appraisal to ascertain the true value of a property before advising you to buy.

In addition, a home inspection expert knows the market. His knowledge and experience can make the difference between being scammed by touts or being blessed with a profitable property.

Spending your money carelessly?

Don't.

Invest it instead. That way you leave a legacy for future generations. And they will love you for it.

Olaitan H Jinad

The 8 Musts of Real estates investment in Nigeria

They say if something is expensive but worth it, you will find a way to get it. And property in regard to land and buildings is one thing that is worth your investment in the long term.

By 2011, only 37% of Nigerians were house owners. This gap can be bridged by providing relevant and timely information to potential investors and to the general public. Additionally, there is a need to break down the barriers to investing in the sector by simplifying the process. That said, consider these 8 steps as you go about putting your hard earned money in the property market.
1. Research

If you are interested in the property market, there are great platforms to find information you need, including the mass media, online and around you. Talk to locals. Visit Google and relevant Nigerian property sites. Create Google alerts for search terms. This way, you will always be in the loop. You have to understand it before you can get into it. It is important to note that Real Estate information in Nigeria is scarce and thus requires effort on your part, whether you are in the country or abroad.
2. Decide on the specific property market

Depending on your goals, pick a sector that will benefit you more. It could be office, industrial property, retail centres or residential units. For instance, if you want speedy returns, investing in the residential market may not be for you. According to a developer in this BusinessDay article, a shopping mall in Nigeria is sold off before it is even complete while residential units take several years to actually sell out.
3. Identify booming real estate markets

They may not be booming now but owing to infrastructure development and ease of access to central business districts, that may be changing soon. Where a highway is constructed, it eases traffic and the working class tends to move in that direction, making it a worthy cause to build high-rises to rent out to them.
What does this mean? If you have identified residential real estate as your interest, you need to target the middle class. Nearly half of the middle class in Nigeria (people earning an average monthly income of N80,000–N100,000) are purchasing goods or planning to do so to improve their lives as years go by. This indicates a significant consumer boom.
4. Decide on where and how you will get finances

Depending on where you are in life, the source of financing may vary. It could be from friends and family or financial institutions. You could also have the money yourself. When you approach the bank or institution, make sure you know what you are doing. Your plan has to be viable enough to make them give you the money. As stated here last time, the Nigerian government secured a $300 million loan from the World Bank to establish Nigerian Mortgage Refinance Company (NMRC) at the beginning of 2014. Hopefully its effect in terms of liquidity and bank lending is being felt now. You could benefit.
Remember that property in the better parts of Lagos and similar upscale urban areas is as expensive as in some Western markets.
5. Get the details right

Be careful not to enter into deals with untrustworthy people. Talk to industry experts, a lawyer and make sure you get everything ironed out right from the federal government requirements down to the owner’s issues. It is another known fact that property scammers run amok in our big cities; pretending to sell houses whose owners are away, complete with fake title deeds. Beware. Get the advice of relevant professionals such as surveyors who will check out the property and advise you accordingly.
When you get down to the construction, enlist the services of architects and service engineers. Do not do things hurriedly only to incur unnecessary costs. The Knight Frank head in Africa was quoted saying that a building in Nigeria that is about 5 years old will look like a building that is 15 years older in Europe.
If you are a foreign investor at corporate level, the best thing is normally to partner with locals like Actis.
6. Know the Law

You have the right to own property as a Nigerian. All the same, the 1978 Land Use Act gives state governments authority over land within their borders. They in turn avail it to you after an intricate and bureaucratic process. You will then receive a certificate of occupancy to actually use the land i.e. sell it or develop it. Your right can also be denied if you are living in a place that is not your area of origin, which can be very subjective at the very least and can create ethnic tension.
7. Look to the future

There may not be basic infrastructure where your property of interest is currently at, but if it is in the line of the ever expanding urban areas, you can never go wrong. A few years down the line, you may sell it at millions over and above what you buy it for. Do not be too short-sighted.
8. Online Marketing

You cannot afford to ignore the Internet in this day and age. Whether it is having a website or maintaining a social media presence, the Web is one of the affordable ways to get traffic to your venture once it hits the ground running. If you want to attract buyers or sellers, online marketing could be your way to achieve this.

Mistakes can be made in the real estate market in Nigeria as in anywhere else and that is why one needs to practise patience and wise resolve. Remember, Nigeria is a developing market with great potential in sight.

Olaitan H Jinad

Need a healthy green lawn?: Tips

Keep your lawn healthy and looking good by proper cutting, watering, fertilizing and aerating. Good timing and techniques mean less time and effort.

You don't have to slave over your lawn to keep it healthy

• Tip 1: Adjust your cutting height to the time of year (and use a sharp blade)
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• Tip 2: A few good soakings are better than lots of light sprinklings (but not in the evening)
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• Tip 3: Mow only the top one-third of the grass blade (and don't rake up the clippings)
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• Tip 4: Timing is everything when it comes to fertilizers and weed killers
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• Tip 5: Aerate your lawn to help it "breathe"

Movers' Guide : The cost considerations

The costs of moving from one home to another can be high and expenses often go unseen until the last minute.

Whether you are a first-time home Buyer who has just outlaid costs to cover Estate Agent fees and transfer and bond registration costs or if you are a renter who has paid the deposit and first month’s rent upfront, you will still be faced with the costs involved in moving your belongings.

Whether you are a first-time home Buyer who has just outlaid costs to cover Estate Agent fees and transfer and bond registration costs or if you are a renter who has paid the deposit and first month’s rent upfront, you will still be faced with the costs involved in moving your belongings.

It's important to consider every cost you might encounter when moving, so here is a list of some of the services and items which are important to consider and to save for accordingly:

Deposit

Whether you are buying or renting, you will need to pay a deposit of sorts. For home Buyers, a deposit is the initial cost paid during the home buying process, and as a renter, the deposit secures your rightful place in your new home. This deposit is a prerequisite in the agreement between a tenant and landlord, but the value of the rental deposit may vary from one to two month’s rent, depending on the landlord.

Removals

When moving home, one of the most important factors is often the simplest, and that is how you intend on getting from home A to home B. Whether packing up your belongings and transporting them solo, to hiring professionals to do all the hard work, there will be costs involved.

When doing a DIY move, consider the cost of the following: packing materials (such as boxes, bubble wrap and tape), petrol for numerous return trips, and perhaps the hiring of a suitable vehicle for transportation of furniture and boxed belongings. 

The cost of hiring movers normally differs depending on what services you require, such as packing services, moving your belongings and unpacking, and is also based on the quantity of furniture you have and of course the travelling distance to your new address. Prices can range from as little as R1 000 to R50 000 – so it’s important to get numerous quotes to find a price that suits your moving budget.  You might also consider taking out insurance to cover damage to your goods during your move.

Storage

If, by any chance, you cannot move into your new home immediately, or if you are moving into a temporary home for a short period, it may be necessary to put some of your personal belongings and less essential furniture into storage. Most storage companies offer a competitive rate, which will depend on the size of the container or number of items requiring storage. It’s important to shop around for the best storage quotes which also provide the added service of insuring your belongings.

Minor yet major hidden costs

There are a couple of costs that often go unnoticed until the last day of your move. These include: crockery and food costs for the day of your move, and purchasing or tailoring new blinds or curtains to fit your new window dimensions.  You will also encounter costs for DIY work done to your house, such as repainting and repairing. 

When you move in to your new home, it’s important to get into your new routine as quickly as possible, and that means taking on a lot of admin! From reconnecting your DStv and telephone lines to having your new house fumigated and carpets cleaned; these are all important tasks which will help you make it ‘your’ home, but which can add to the overall cost of moving.

With all these factors taken into consideration, and with your chosen quotes in place, you can now make an estimated moving cost calculation to determine how much you can expect to pay to make the exciting move to your new home.

Olaitan H Jinad

08093081908

To buy or to rent?

Timeline costs for Tenants and Homeowners

Most of us, at some point in our lives, will have to decide whether to buy or rent a home. The decision that is then made is often based on the financial factors involved over a long-term period. Here is an overview of all the costs incurred for both a Homeowner and a Tenant.

Start-up

When entering the property market, those wishing to rent a property will be faced with very low start-up costs compared to the big upfront expenses involved in buying property.

When choosing to buy or rent a home, look at all the financial factors involved over a long-term period for both a Homeowner and a Tenant.

At the start of the first month of renting a property, a tenant will be expected to pay a deposit and the first month’s rent. The deposit is held as surety and can be used by the Homeowner to cover outstanding rental costs or damage caused to the property during the lease term. The value of the deposit is at the discretion of the Homeowner, but usually ranges from 1 to 3 months of the rental amount.

When buying property, the new Homeowner will have to cover some initial costs including a home loan deposit, property registration fees, Bank fees and Estate Agent fees. The value of the deposit is very important for a first-time Homeowner, as it directly impacts the home loan repayment amount, and therefore the monthly instalments due. The greater the deposit saved, the lower your monthly bond repayments will be. The overall start-up fees may seem high at first, but one must take into consideration that these fees are once-off amounts and are the initial costs involved in paying towards your own profitable, long-term investment.

Annual costs

The yearly costs for those who rent and those who own property may vary.

A Tenant is required to pay rent on a monthly basis as stipulated on the lease agreement. The duration of a lease may vary, but will often range between 6 and 12 months. After this time, the Tenant will be required to renew the lease contract, which will likely be subject to an increase in rent. This increase in rent usually varies between 5% and 10% of the rental amount, and is normally implemented based on a 12-month cycle.

In comparison, a Homeowner is required to pay monthly bond repayments. The total repayment amount is based on several factors, such as the property price, deposit amount, duration of the loan, and interest rate offered. The duration of a loan is typically 10, 20 or 30 years, and the value repayable can be affected by fluctuations in the interest rate during this time. Unlike a Tenant's rental payments, the Homeowner’s annual bond costs accumulate equity over time, and are tax deductible, ultimately resulting in a saving.

The Homeowner is directly responsible for paying the levy and utility costs of a home and these include water, rates and electricity. However, when renting, while water and rates costs are usually included in the monthly rental amount, the monthly electricity fee is an additional payment for the Tenant’s account. The inclusion of these costs in the rental price is at the discretion of the Landlord. Additional costs incurred by a Homeowner are those involved in the general maintenance and repair of a property.

Both Tenants and Homeowners have the option to make use of additional services, and these will be at their own cost. Such services include internet and telephone, insurance for household contents and security fees.

When moving on

When a Tenant chooses not to renew the lease contract, the deposit amount may be paid back. This will be at the Landlord’s discretion based on any outstanding rental due or damage to the property that was as a result of the Tenant’s negligence. A Homeowner who decides to sell a property can potentially make a profit from the proceeds of a sale as a home generally appreciates in value over time.

When considering the actual long-term costs of both renting and buying, you will find that rental costs often accumulate and are higher than that the costs involved in home loan repayments. This is because there is never an end to large monthly payments with renting, and the amount will continue to increase as time goes on. However, a home loan will come to an end at which point the Homeowner will no longer have to make large monthly home loan payments, and they will have a valuable asset to their name. This is why renting is only a viable short-term option and buying is a long-term investment option.

When looking at renting or buying as a whole, the costs involved may be an important aspect, but your decision will also largely rest on the security homeownership offers compared to the freedom of renting, and which of these suit your needs.

When choosing to buy or rent a home, look at all the financial factors involved over a long-term period for both a Homeowner and a Tenant.

Choosing the right neighborhood

If you’re buying a new home, the neighborhood you choose can be just as important as the choice of home.

Start by creating a list of what you need in a neighborhood.

So, how do you choose the rightneighborhood?

“Consider the pros and cons of the neighborhood and its surroundings,”. 

“What other factors may be significant? Look at things such as a range in property value, type of property, schools and proximity to employment, comforts and other avenues of life.” 

To create your short-list, it pays to start by asking the right questions:

What type of neighborhood environment do you seek? A downtown, urban vibe? A close-to-town location that blends the aspects of both city and suburban life? A leafy suburban feel? A laid-back, out-in-the-country setting?

What types of shopping, restaurants and businesses would you like nearby? A shopping mall? A favorite eatery or joint? Sports fields and open park land? A movie theater? A wide array of restaurants? Art galleries and museums? A library? Live music venues? This question is related to the one above and will also help you define what matters most to you.

What leisure-time activities do you enjoy? Many of today’s new home communities offer a myriad of community ammenities that can support interests or hobbies you may have. You’ll find community club houses, pools, tennis courts, hiking trails, nature areas and other facilities. Community residents often form clubs based around shared interests and activities — from soccer, movies, games, parenting and more.

What type of commute do you seek? Do you work from home? Do you travel frequently and thus want quick access to the airport? If you commute daily to work, would you prefer to do so by car or mass transit? And how many minutes each way would you ideally prefer to spend traveling to and from work?

Single-family homes and the suburbs go hand in hand

For many people, home calls to mind an image of tree-lined streets with single-family homes with larger yards arrayed along winding sidewalks.

If you want more space and privacy and don’t require quick access to the heart of your city, the suburbs may be the place for you. Don’t fall victim to the misconception of suburbia as neighborhoods filled with homes that are “cookie-cutter” or have no personality. Not true! Today’s new home communities offer a wide arrays of home plans and elevations (the look of the front of your home) that allow you to personalize your home to reflect your individuality.

Many master-planned new home communities also offer a plethora of amenities, such as gyms, sports interests, book clubs and clubs, in which you can take part. If you have kids, plan to start a family or simply find the lifestyle appealing, the suburbs can offer a community experience that meets your needs.

Of course, many of you likely grew up in suburban homes like these. They were the primary style of housing for the majority of the 20th century. Today, there is a far greater variety of housing and neighborhood styles available for you to explore.

Low-maintenance homes and communities

Neighborhoods containing so-called zero-lot line housing can be perfect for many people. If you travel often or are away from your home for extended periods of time — or simply don’t have the time or desire to maintain a large lawn — a zero-lot line home may be ideal for you.

Zero-lot line houses extend close to the edge of their property lines. Less yard space means fewer yard care responsibilities but a larger amount of inside space. Many communities offering this type of housing include yard care and even exterior maintenance, allowing for the so-called “lock and leave” lifestyle where your home is tended to while you travel.

Whether you’re a single person with a demanding job and travel schedule, an empty nester who spends part of the year in another location or a two-income household that would rather spend its time on things other than home and lawn care, a zero-lot line home with some elements of maintenance included may be ideal for you.

Transit-oriented development clusters housing, retail and office space near mass transit

Do you own a car? If so, do you relish making a hefty drive to work? If you answered “no” to either question, a Transit-Oriented development neighborhood (TOD) may be just what you need.

“These neighborhoods are specifically built with public transportation in mind,”  “They surround high-traffic businesses with cost-efficient housing.”

Neighborhoods centered around mass transit options create a compact community that combines business, retail and residential space in one urban area that’s easy to maneuver. Young singles, empty nesters and any buyer that wants to cut the commute and live a simpler, yet urban lifestyle may find transit-oriented communities a great fit.

A popular example of a TOD neighborhood is Surulere, Ketu, Ojota, Oshodi and Ojuelegba, located in Lagos, Nigeria. Recently. Living in a TOD neighborhood like Oshodi could drastically cut down on that traffic-logged travel time.

Multi-Generational Housing

One of the biggest trends in both home and neighborhood design is Multi-generational Housing

A recent Pew Research study found that 59 percent of Nigerian adults are caregivers for an adult relative or friend as a result of massive unemployment. Multi-generational housing may just be the ideal solution for young adults in their 20s who move back in with their parents or those adults who are caregivers. This style of housing offers extra bedrooms or even small apartments or guesthouses to help give each generation its own living space.

“Multi-gen housing accommodates all walks of life and combines several generations into one community,”. “There are many different types of homes with a number of rooms allowing for many different needs.”

Lennar's NEXT GEN Homes, for example, offer the benefit of two separate, yet linked, homes under a single roof, without the look of a duplex home. A second smaller home within a home offers its own garage and front entry, a kitchenette and eating area, with a connection to the main home. The NEXT GEN home offers the best of both worlds — privacy and yet connection — for multiple generations to share a home.

And it’s not just the home. Many larger master-planned new home communities offer neighborhoods for active adults with a quieter feel that also offer access to the amenities of the community as a whole, including clubhouses, pools and tennis courts. Experts predict that this “neighborhood within a neighborhood” concept will grow as more baby boomers enter their active adult and retirement years.

If you anticipate having a parent or child move back in with you — or if you simply want to be surrounded by a variety of age groups — multi-generational housing neighborhoods may be an option for you.

Are urban-infill neighborhoods right for you?

If you’re not ready to head to the suburbs, up-and-coming neighborhoods could be an alternative for you. These new home neighborhoods are located closer to the city or to downtown than many suburbs typically are, yet still provide a feeling of community. Here you can find single-family new homes or townhomes that are often less expensive than homes in the urban core.

These communities are often referred to as urban in-fill communities. An example of this type of community is Ikorodu, Berger, Ikotun, Mowe, Ipaja, the developer and builders are creating a state-of-the-art mixed-use community that will offer a new generation of neighborhoods and a new standard of urban living. With millions of single family homes, apartments and millions square feet of commercial space, 10,000,000+ residents and workers will contribute to a vibrant quality of life.

New homes and new home communities offer something for everyone

By asking the right questions and considering all of your options, you can find the perfect neighborhood suited to you.

Olaitan H Jinad