What Are The Implications Of The Economic Recession On The Real Estate Business in Nigeria?
Invest, when the economy is speeding spiraling downwards you say? That’s what will probably cross your mind when these come to your hearing. The economy is at a meltdown because Nigeria invests and lays more emphasis on the Oil and Gas sector leaving all other sector to survive without adequate supervision. But now that the price of Oil has dropped and the Naira is at approx. N300 to $1, it is time for Nigerians to start investing in other sectors. The Real Estate sector is bigger than you can think, according to a research carried out by Price-water house coopers, it predicted that by 2016 real estate will be valued at $13.65 billion, accounting for the 7.6percent of the country’s Gross Domestic Product. So now the question that plays in your head is how do I Invest in Real Estate? Well here’s how.
Shelter is one of the basic needs for human beings and no matter how bad or good the economy is, the demand for houses supersedes. One way is to buy properties at below market value, make changes or repairs of things that need to be and this in-turn increases the value on the house. Once the economy picks up, there will be people who will want to buy or rent the properties at a higher price that you bought it for. An example is when Donald Trump bought the Bank of Manhattan Trust building in 1995 for $1million to $10 million and spent close to $160 million in renovation, during a period where his company was surviving on loans from banks and the company was going to file for Bankruptcy. By 2006,Forbes put a $260 million price tag on the property.
Investing in properties that are long distanced, an example will be Ibeju Lekki,Epe etc. With the projects happening in the Lekki Free Trade zone and the new International Airport that is on-going, once such projects have been completed, the number of people that will want to reside in such areas will increase. People will now want to acquire properties around; properties that were bought at a fairly cheap rate will be sold at double the amount if not more.
Another is renting out a room. If you have let’s say a 3 bedroom apartment which you stay alone, rent out a section of the apartment can be an added income to your purse.
Lastly, investing in student hotels can yield 100 percent income. The number of hotels available is not enough for the students. You also have student who would prefer to live on their own having a feel of home away from home.
Why not give investing in Real Estate a go.