Investing in properties (land/structure) is one of the smartest ways to secure investment and multiply income. They are several option in real estate investment that can be explored; example include:
1). Purchase of vacant land
2). Purchase of structure/building
3). Rent of space/structure
4). Lease of space/building/structure.
Importantly, one of the most viable at this point in one is #Landbanking®. Therefore question staring us in the face is what is land banking and what are the benefits?
This shall be analysed in subsequent paragraphs.
Land banking is the process of investing fund/cash in tangible fixed asset. Suffix to say #Landbanking® is a safe investment, albeit with its own share of risk that can be mitigated.
The advantage of vacant land transcends beyond purchase or acquisition; other benefits include:
> Minimal additional cost (no utility)
>No mortgage payment
>Choice to erect structure as deem fit.
>No termite infestation
> No leaky faucet
>No tenement rate
> No repair and maintenance cost.
To maximise investment; it is therefore expedient to buy vacant land with good title. However, buying in remote areas doesn't automatically translate to wealth unless certain factors have been considered such as demography, economic development etc.
Example 1
A company sold plots of land for N7m/$19,445 per plot in Ajah, Lagos between April and May 2017; same company closed sale after selling some plots and reopens in August, 2018 barely 15 months later selling at N10m/$27,778.
What is the returns on investment (ROI)
N/B: Let us agree that you bought one plot, spent additional N1m/$2,778 on documentation and papers and decide to say at this new rate.
ANS
Data
Original cost of land = 7,000,000
Additional cost. = 1,000,000
(8,000,000)
New selling price. = 10,000,000
Balance = 2,000,000/$5,556
ROI- 2,000,000/7,000,000X100 = 28.57%
Example 2
Mr and Mrs Biola bought an acre (6 plots) of land for N3m in Eleko axis, Ibeju-Lekki five years ago (60 months) ie 2013, spends N1.5m on documentation/papers. The couple decides to sell 3 plots at current rate of N3m/plot. Calculate returns on investment (ROI).
ANS
Data
Original cost. = N3m (500,000/plot)
Additional cost = N1.5m (250,000/plot)
Cost of three (3) plots = 5000,000 x 3= N1,500,000
Additional cost per plot= 250,000 x 3= N750,000
(2,250,000)
Recent selling price N3,000,000 x 3 = N9,000,000
Balance N6,750,000
ROI= Profit/intial x 100
6,750,000/2,250,000 x100 = 300%
300%/5yrs =60% ROI/year
IBEJUIBEJU-LEKKI AXIS AS AN INVESTMENT DESTINATION OF CHOICE
Ibeju-Lekki is the present and arguably future destination of choice due to the phletora of investments and businesses opening up in that axis. Consider the
$16b Dangote Refinery with a workforce of over 50,000
N6b operational Kellogg's factory
Operational Power Oil and Ndomie factory
Lekki Free Trade Zone
Dangote Deep Sea Port
Proposed International Lekki Airport
Operational Steel factory
Relaxation resort... and host of others.
Wouldn't you rather take that bold investment step now?
Reach out to us for viable properties (Land/structure) on 📱+2348025038172
#Landbanking® #thinkproperty.
Thank you!
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