Land is nature’s gift to man. It is fresh, it exists sitting pretty, it is unproblematic, it never goes out of style, and most importantly it is a big money-making machine. Still, why is investing in land important to a Nigerian businessman/woman, and how does it fully guarantee you more money? Well
- Land is a beneficial investment mainly because it appreciates. This means that it gets an increase in value over time. It does so for various reasons. It appreciates in Nigeria for reasons like mortality rate and its limitedness in supply. Lagos alone has a population of over 14 million people “officially” and a landmass of 1,171km. The increase in birth and population with more people around creates an excessive demand for land as people need more places to live. When there is limited landmass in an overpopulated country, it is best to invest in the few available and be one of the people providing space opportunities for people. The increase in demand for land leads to an increase in prices due to its high value. It appreciates about 3-5% on average. You help people out and gain a lot of money from it too, BIG WIN-WIN. This makes real estate a very hot commodity type of business.
- Land also appreciates due to inflation rates. Land and real estate are affected positively by inflation because it is essential. No matter the economy, people will always need a place to stay. Inflation affects the prices of goods by increasing but causes a devaluation in the country’s currency. However, your land for sale can be classified as a good therefore as the currency devalues, your real estate asset prices (land price) up’s its value. Even if you decide to build a home on your land, instead of reducing during inflation your house prices increase and its intrinsic value is still determined by the land.
3. The development in a certain environment also makes your purchase there get more valuable. As you have guessed, now the land is the king of value and there’s no losing with land still.. Location is very important when choosing where to get your land. If you’re interested in gaining from your investment quickly. It is best to invest in a bubbling hub or popular environment as offers will probably be blowing up your phone. If you’re more of a laid-back oga who doesn’t mind waiting a bit, investing in a remote area might be best and will often be more affordable but it has to be a place with a prospective future.
4. Lastly, investing in land always has a 100% guaranteed outcome. It is legitimate and responsible if done the right way or with the right agent. Leaving your land alone for a couple of years can be guaranteed to give you more than your initial down payment due to the effects of appreciation as stated earlier.