One of my most renowned role models in the business world by the name Andrew Carnegie stated an absolutely brilliant quote when he was alive and I quote ''Ninety percent of all millionaires become so through owning real-estate.'' Also, another role model of mine in business by the name Grant Cardone also stated that ''Real-estate has a proven formula that will generate wealth. Do the math and do the deal.''
Obviously, real-estate is a much more safer investment as it offers to individuals who are willing to learn about this beautiful sector the opportunities for expected cash flow, exceptional return-on-investment (ROI), tax benefits and portfolio diversification for building wealth for the short-term, mid-term and long-term. Let's take a thorough look at these top 4 reasons for investing in the Nigerian Real-estate market by 2023.
- Appreciation in value: The best way to create the right future investment is to create it today. How is that possible? The answer is simply real-estate. Real-estate values have a tendency to rise over a period of time which leads to profit making for the investors and generates more passive income. A good example would be: let's assume a client pays N50m naira currency for a property in Lagos or Abuja in 2022, by the year 2023 or 2024 the value of the property would increase and it can be sold for N65m naira currency or more depending on the location and increase in demand.
- Hedge against rising inflation: Real-estate has the capacity of hedging against inflation which develops from the connection between the demand for real-estate and GDP growth. As the economies in Africa keep growing, the demand for real-estate would propel rental values to go higher. Consequently, real-estate shows a preference for the maintenance of the purchasing power of capital by moving some of the inflationary tension on to tenants and by integrating some of the inflationary tension in the form of capital appreciation.
- Guaranteed cash flow: Cash flow can be defined as the net income from a real-estate investment after the operating expenses and the available mortgage payments have been made. One of the major advantages of investing in real-estate is its capability to generate cash flow for the smart investors who are willing to acquire real-estate properties and add it to their investment portfolio. Investors who purchase properties can use these properties for investment purpose to drive business activities such as put them on rent, short-lets, Airbnb, host bridal showers, host birthday parties, etc.
- Financial freedom and networking opportunities: Being business-minded like myself, the best part about real-estate are the great opportunities that you encounter as you have the means to learn from the experts in the real-estate industry; you can become your own CEO, you gain control over your real-estate investment strategies thereby building lasting wealth inclusive of your success stories and failed lessons and you get quality exposure that enables you to meet a lot of people nationally and worldwide.
In conclusion, real-estate is a great business to work in. It is important to note that when considering investing in real-estate properties; ensure that you do your due diligence by making sure that the companies embrace the best construction workers in their workforce, make use of technology, use the right construction tools and machinery for building, use the right building materials, outsource with experts when needed and they keep learning from the experts in the real-estate industry in-order to deliver value and excellence to customers forever.
