No doubt you must have come across the statement that real estate is the safest investment or you might have even heard from a colleague, a friend, or a relative. But you keep wondering what makes real estate investment so special and safer than other investments. If you are in this category, then you are in luck because in this article, i will be answering this question with proof.
Without taking much of your time, let’s dive in…
Real estate is considered one of the safest investments (if done in the right way) because we are locking money in an asset that will appreciate with time (at least in 90% of cases). In Nigeria(Lagos especially) as we already know, we are going through a population explosion. So considering that you will definitely get a tenant for paying the rent. As you will hold the property, it will eventually going to appreciate in value and at the same time, you are going to get a rental passive income from it. Basically, the rent is a cherry on the top with appreciating asset value.
If you are going to invest in a raw house kind of property, then you know the habitable area on the earth’s surface is limited but the rate with which we are increasing in numbers has no limit. So that is going to create a shortage of such kind of properties. And from the rule of supply and demand eventually, rates of land-based residential properties are going to skyrocket. That is the basic terminology behind this safe investment class mindset.
But again this is true only if done in the right way. If you are taking a flat in an under-construction property with 80% loan amount and due to some bad luck or mismanagement builder runs out of money, then I can assure you, that you are never going to invest again in this safe investment asset class. Another thing to consider is the location of the property. If the city in which you are investing is going to expand in your property’s direction. If not, then please forget about the appreciation part I wrote about.
So you can never go wrong investing in real estate because the real estate asset class is one of the safest if done in the right manner. However, you must follow due process while investing to avoid falling victim to land scammers.
If you want to start your real estate journey, Contact us on 0902 455 4979 or visit our head office Suites 201 & 202 Akord shopping complex, Elemoro Bogije, Ibeju Lekki, Lagos state.