I’M READY TO VENTURE INTO REAL ESTATE, WHAT ARE MY OPTIONS?
Real estate is a very diverse industry, and there are a variety in types of investments you can engage, but for the purpose of this blog, we will lock in and focus and the common and most popular types of real estate investments; to aid you in your choice. There are four main types of investments in real estate, they include:
Residential Real Estate
This type of real estate investment involves investing into locations where people reside, hence the name “Residential”, it is one of the most popular types of real estate investments till date, Investors make their money in this type of real estate investment, by leasing or renting their properties to private individuals for the purpose of residing within property, over a short term or long term period of time.
Some of these properties include: Single family houses, condos, duplex, vacation homes etc. This type of real estate investment might just be your go choice, it offers cashflow passively and their
are tax advantages in residential real estate. These types of properties are also considered to be very valuable by banks and financial institutions, and can be leveraged to increase your capacity in loans.
Every investment has its catch, residential real investments usually require heavy capital upfront, maintenance expenses are also reoccurring which is something you will have to take into consideration when making your investment choice, still, managed the right way, this type of real estate investment has made a number of people multi-millionaires over time.
Commercial Real Estate
Commercial real estate is a type of real estate investment, that involves the use of properties for business or professional purposes to generate income for its owner. This type of real estate investment is considered to be one of the most profitable, mainly because it hedges against inflation, rent increases with inflation and the value of the commercial property is based on its rent.
Examples of these types of properties include: Office buildings, Malls, petrol stations, warehouse, restaurants, hotels etc. There are two types of commercial real estate properties, Industrial properties,
these are typically buildings that are used to manufacture goods such as factories, and the second is retail properties, commercial buildings used for the purpose of providing a product or service, like a restaurant.
Commercial real estate is extremely lucrative, in comparison to residential real estate, the leasing period tends to be longer and the rent much higher, which in turn means a very solid and steady passive income over a long period of time.
With the carrot also comes the stick, this type of real estate requires very heavy upfront investment fees and maintenance expenses can also be heavy depending on the situation, you will have to take all factors into consideration before deciding to embark on this type of real estate investment.
Real estate investment trusts, popularly know as REITs. This type of real estate investment is for individuals who don’t want the hassle of having to manage the physical real estate property themselves,
instead they invest in real estate via shares. REITs is a type of real estate investment that involves purchasing shares on the stock exchange, from companies that own commercial real estate properties.
The benefit of this type of investment as mentioned earlier, is to alleviate the risk of directly owning a property. It is also a type of real estate investment that offers more liquidity, you can quickly sell your shares when you are in need of cash.
Raw Land. This overtime has become a very popular type of real estate investment in Nigeria, due to what we call “Land banking”. Buying raw land was usually a feat only undertaken by developers back in the day,
as these developers had a very deep understanding and knowledge of real estate, they could envision the potential of the raw land, taking into the account several factors like it’s location, and the value it can bring overtime when developed. nowadays, you see a number of private individuals investing with these developers, buying a plot of land or two, some to build and develop for themselves, but from the investment point of view, you buy the land, hold it for a prolonged period of time for it’s value to greatly appreciate and then sell at a competitive price when the demand for the land is great.
This type of investment can be very profitable, as long as you do your due diligence, you have to research the location of the land to ensure you’re investing as the right time, what are the potential developments coming that way in a couple years, you have to understand the governing regulations concerning the transactions on said land, who is the owner of the land, you have to verify the owners through the right processes … sounds very tiring and tedious right ? well luckily for you, Danbel has all this covered.
We have done our due diligence, our research on location, potential and authentication, we have done the leg work so you don’t have to go through that headache just to invest. We want to ensure you’re not buying land in an area that still has zero development a decade later, and we have the perfect locations on raw land just for you, with options available depending on your budget, raw land is the perfect type of real estate investment for you to kickstart your portfolio today, so hurry and reach out to us at Danbel, as the raw land available is very VERY limited, do not miss out on the opportunity.
Our Windspring estate in Ibeju-Lekki is an investor’s choice location. It is in a fast developing neighborhood, right beside proposed regional highways that links Lekki Epe Express straight to Lekki Free Trade Zone.
Location: Oju Agbe, Ibeju Community ,Off Lekki Epe Express Way 5Mins Drive From Pan-Atlantic University.
Land Title: GAZETTE
0-6 months: NGN13,200,000
Development Levy : NGN800,000
Size: 300sqm(Half plot)
Outright price0-3months: NGN9,600,000
Development Levy :NGN800,000
We also have our Avalanche Hill Park Estate located in Eredo Epe.
LAND TITLE: FREEHOLD
SIZE: 500sqm (Full plot)
Outright Price: NGN3,500,000
Development Levy: NGN1,000,000
Deed of Assignment: NGN100,000
FULL PLOT: #5,050,000(Inclusive of all statutory fee)
SIZE: 300sqm (Half plot)
Outright Price: NGN2,000,000
Development Levy: NGN500,000
Deed of Assignment: NGN100,000
HALF PLOT-#3,050,000(inclusive of all statutory fee)
Think Investment, Think Real Estate, Think Danbel.