SMEs

There are a number of reason people invest in real estate. This piece examines 5 of them in brief

 

1. BUY – KEEP – SELL: A real estate speculative investor may buy a property in an emerging area with high return on investment (ROI) and resell at a highest price. A notable factor that positively affects ROI is nearness to a major infrastructure like a major road/expressway, deep see port, a railway or a refinery. Estates close to the Dangote refinery at Lekki Free Lekki or off Lagos/Ibadan Expressway Road, (Close to Magodo GRA) have high ROI.
A. PORTVIEW ESTATE @ Lekki Free Zone beside Dangote Refinery N6.5m, 120k monthly payment.
B. VICTORY ESTATE @ Lekki Free Zone N4m, N70k monthly
C. GRACE COURT ESTATE off Lagos/Ibadan Expressway way. Highly developed and liveable environment. N6m
D. VINEYARD ESTATE @ Mowe. Off Lagos/Ibadan Expressway – Developing area. N1.2m

2. BUY – BUILD – SELL: A private developer (on a small, medium or large scale) may acquire property to build and sell the land and the building on it at a profit.

3. BUY – BUILD – LET/LEASE: Here, the investor buys the property, builds on it, rents/leases it out and obtains annual rent on the property. A number of pensioners opt for this investment option as it gives a guarantee of a steady means of income. (One however has to be careful not to house a tenant who does not pay his/her rent as and when due).

4. BUY – KEEP – TRANSFER: Some investors buy properties and keep with the hope of transferring same to their children (and grandchildren).

5. BUY – CO-DEVELOP – LET/LEASE/SELL: An individual may acquire a choice property but may not have the financial capacity to build on it. A development agreement could be entered into wherein the owner contributes his land and a developer builds on the said land with a pre-agreed sharing formula.

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