by
The Guardian Newspaper (April 11, 2016)
The phenomenal rise in population, number and size of our cities over the past few years have manifested in the acute shortage of dwelling units which resulted in overcrowding, high crime rate, thus the need for a convenient home ownership scheme . The demand for shelter is ever rising in the cities, especially the commercial centres. Presently, the concerted collaborative efforts of the government and private investors are yet to address the housing deficit issue.
In addition to this, the continuous fall in the price of oil from which most of the foreign exchange earnings of the nation is derived is likely to ultimately affect various sectors of the economy. So, as an investor, as you begin to make investment plans for the year, you should take a critical look at the Real Estate market as an area of diversification . The real estate market in Nigeria comprises vacant land, Residential and commercial properties. It is a known fact that real estate appreciates in value over time and the returns on such investment depends on the type of property purchased. In a country with a fast growing population like Nigeria you could earn some extraordinary returns from your real estate investment provided you invest wisely and follow due diligence.
According to real estate analysts, Real Estate is also very resilient in all kinds of economic conditions including inflation. During periods of inflation the basic effect on the economy is that the prices of things goes up. It means simply that money buys less. Where most investments lose their value at exactly such period, real estate investment on the other hand has the inherent ability to absorb rising costs. Real estate investment is unique in this aspect since only very few investments can weather the storm of inflation. Research has shown that real estate has the ability to produce income, ability to produce a profit, and ability to appreciate in value at the same time.
Another benefit of investing in real estate is its ability to leverage resources or the equity in the property. Real estate also has the added benefit of tax protection for your investment. Because buildings are subjected to natural wear and tear, you are allowed to factor in depreciation. In addition, your property is a form of money bank from which you can access cash when you need them by selling the property. It could be used as a form of collateral in order to access loan. Real estate is one of the safest forms of investment and will always be in demand.
So, if you are looking for a safe investment that hardly depreciates in value at all times and attracts good returns, real estate is a sure bet. Real estate is “property consisting of land and the buildings on it, along with its natural resources such as crops, minerals or water and Immovable property such as buildings or housing in general. Investment in real estate can be in outright purchase or mortgage, whatever form you invest your money, you are sure returns on your investment in record time.
