10 Amazing Benefits Of Investing In Real Estate in Nigeria
Nigeria, “the giant of Africa”, is not only blessed with a rich cultural heritage and abundant natural resources, but also a booming real estate market. As the population continues to grow and urbanization expands, investing in real estate in Nigeria has become more essential than ever before. Whether you’re a local or international investor, the benefits of investing in real estate in Nigeria are clear, and the potential for long-term growth and profitability is significant.
In this blog post, we’ll explore the top 10 benefits of investing in real estate in Nigeria and why you should consider adding this asset class to your investment portfolio.
Here are 10 benefits of investing in real estate in Nigeria
- Steady Income: Consistent earnings
- Appreciation: Increase in value
- Multipurpose Use: Utilize a property for multiple purposes
- Diversification: Variety in investments
- Control: Authority over investment decisions
- Leverage: The use of borrowed funds to increase investment potential
- Tangible Asset: Physical property that holds value
- Retirement Income: Earnings used to support oneself in retirement
- Legacy Building: Establishing a long-term financial legacy
- Inflation Hedge: Investment protection against rising prices
Related: The Top 9 Real Estate Investment Apps in Nigeria
1. Steady Income
One of the primary benefits of investing in real estate is the reliable source of income it can provide through rental payments. Unlike other investments that can be unpredictable, real estate provides a steady income stream that can be relied upon to cover expenses and provide a cushion for unexpected events. Real estate investors can enjoy the benefit of regular rental income without having to sell the property. In fact, many real estate investors in Nigeria rely on their rental income to cover their living expenses, making it a valuable source of steady income.
In addition to providing a steady income stream, real estate values appreciate over time. Demand for real estate continues to increase, and as a result, property values rise. Historically, real estate has been one of the most stable investments, with property values consistently increasing over time. This means that investing in real estate can provide a reliable source of long-term wealth creation. As the value of your property appreciates, you can sell it for a profit or refinance it to access the equity. Either way, investing in real estate is a smart move for those looking to grow their wealth over the long term.
Related: Real Estate Investing 101: Learn the Fundamentals of Real Estate Investment
3. Multipurpose Use
Another benefit is the ability to utilize the property for multiple purposes. This means that a single real estate property can serve more than one function, providing greater flexibility and potential return on investment.
- Commercial property can be used for retail, office, or industrial purposes.
- Residential property can be used as a rental property, a vacation home, or a primary residence.
- Mixed-use property can provide a combination of residential and commercial space, such as a building with retail space on the ground floor and apartments above.
Multipurpose use allows investors to adapt to changing market conditions and maximize the potential of the property. For example, if demand for commercial space decreases, the investor can convert the property to residential use. Similarly, if there is a trend towards remote work, a commercial property can be converted into residential units to capitalize on the growing demand for housing. In addition, investing in a multipurpose property can increase the likelihood of steady cash flow from multiple sources, which can provide a more stable income stream than relying on a single tenant or use.
Real estate provides diversification in an investment portfolio. Including real estate in your investment portfolio can help reduce risk and increase returns. Unlike other investments, real estate is not closely tied to the stock market or other financial markets. This means that real estate investments can perform well even when other investments are struggling. Additionally, real estate investments can provide a level of stability to an investment portfolio that other investments may not be able to match. Diversifying your investment portfolio with real estate can help you achieve your financial goals while reducing risk.
Residential or commercial real estate in Nigeria: Which is best
Investing in real estate provides investors with a high degree of control over their investment. Unlike other investments that are subject to market fluctuations and outside forces, your investments can be actively managed to maximize returns. Real estate investors have control over factors such as rental rates, property improvements, and tenant selection, which can directly impact the value and income potential of the investment.
This control can provide a sense of security and predictability, as investors can actively manage and improve their investments to achieve their financial goals. Additionally, real estate investments can be passed down through generations, providing a valuable asset that can be managed and controlled by future generations. Overall, the control provided by real estate investments makes them a valuable tool for building wealth and achieving financial independence.
Related: How to Invest in Real Estate with Little to No Money
Real estate investments can be leveraged to increase returns. Unlike other investments that require you to pay the full purchase price upfront, real estate can be purchased with a down payment and a mortgage. This means that you can control a large asset with a relatively small amount of cash. An example of this is the Stow Fractional Investment Plan.
The ability to leverage real estate investments can significantly increase returns, making it a valuable investment opportunity for those looking to grow their wealth. Additionally, the interest paid on a mortgage can be tax-deductible, providing additional tax benefits to real estate investors. However, it’s important to remember that leverage can also increase risk, so it’s important to carefully evaluate your investment opportunities before making a purchase.
7. Tangible Asset
Real estate is a tangible asset, which means it has a physical value that can be seen and touched. Unlike other investments that exist only on paper or in digital form, real estate is a physical asset that provides a sense of security and stability. This tangible nature can make real estate investments more appealing to some investors, as they can see and touch their investments. Additionally, owning a physical asset like real estate can provide a sense of pride and ownership that may not be present with other types of investments.
8. Retirement Income
Owning rental properties can provide a steady stream of rental income, while selling properties can provide a lump sum that can be used to support retirement expenses. Additionally, real estate investments can appreciate over time, providing a valuable asset that can be sold or used as collateral to access funds during retirement. This will help you maintain your lifestyle without solely relying on a pension or other retirement benefits.
9. Legacy Building
Investing in real estate can help you build a legacy by providing long-term wealth creation that can be passed down to future generations. By building a portfolio of real estate investments, you can create a source of income that can be enjoyed by your heirs for generations to come. This makes real estate a smart investment choice for those looking to build a lasting financial legacy.
10. Inflation Hedge
Real estate is a great hedge against inflation. As the cost of living increases, so do rents and property values. This means that as inflation rises, the value of your real estate investment will also increase. This makes real estate a valuable investment opportunity for those looking to protect their wealth against inflation. In fact, many investors turn to real estate as a way to protect their portfolios from inflation and market volatility in Nigeria. The stable income stream provided by real estate investments can also help offset inflation, providing a reliable source of income that keeps pace with rising costs.
Related: Unlocking Real Estate Investment Opportunities in Lagos Nigeria
All you need to know about diversifying your real estate portfolio
Take Advantage of the benefits of investing in real estate
As we conclude this article on the 10 benefits of investing in real estate, it is important to remember that real estate is more than just a financial investment. Investing in real estate can be a powerful way to achieve your financial goals, and the Stow Fractional Investment Plan is an opportunity you don’t want to miss. With a guaranteed return on investment of 10% over 48 months, you can rest assured that your money is working hard for you.
But that’s not all – our investment plan also offers a guaranteed capital gain of 10% – 20%, and your investment is secured against a built property. Plus, with an automatic rebate on the value of the property, you’ll see even more returns on your investment.
And that’s not all – as an investor in the Stow Fractional Investment Plan, you’ll have the first refusal option to own the property outright at maturity. And with an annualized two-year yield payable up front, you’ll see returns on your investment right away.
Don’t miss out on this exciting opportunity to invest in real estate and achieve your financial goals. Contact us today to learn more about the Stow Fractional Investment Plan and take the first step towards building your wealth with real estate.