Land investing is a relatively renew type of real estate investing that provides great returns to real estate investors in exchange for their money.
Unlike stock which interrupts investors in exchange for their money.
Land investing provides long-term productivity returns that investors want in exchange to make wealth.
If you’ve never heard of this rule, that’s fine.
This helpful guide provides a complete introduction to land investing.
This way, if you’d like to learn how you can benefit from land investment, continue reading.
The true power of land investing
First, let’s consider the true power of land investing.
With land investing, real estate investors can create wealth by investing in landed property.
Each of these land investment types(land flipping, buy and hold, and leasing land) provide long-term productivity returns for investors such that is a long-term win and win.
At first, investing in landed property doesn’t provide any value to real estate investors and they don’t offer any inherent benefits for potential buyers to inspect them.
And the reason is that.
A landed property located where there’s not much potential, won’t sell.
Such land property on a non-selling location capitalizes on the fact that investors won’t bother buying anywhere and you as an investor hope people will buy them.
Just because you’ve many acres of land while waiting for the next buyers.
While a land property located where there’s much potential interrupts buyers hoping they’ll do business long enough to get the message without losing focus of the investment.
Therefore, it’s safe to say, landed property located where there’s market buzz gets the attention of investors long enough.
In fact.
Eystone team did a fantastic job, with the recent data, a landed property located where there’s market buzz sees a quick return on investment of roughly 30% in 6 months.
- Considering that location impacts market share, which makes a quick return on investment of roughly 30% in 6 months.
Without no further ado.
Land investing relies on good location, high market buzz, and exceptional market strategy to capture buyers’ attention for a long period of time.
Now, the question is:
…Is there an alternative? Is there a way to know a selling location without wasting your market budget?
…Or is there a way to engage real estate buyers so that they’ll want to buy your market right away?
And the answer is a big, yes.
…And it’s called land investing strategy.
A quick introduction to investing in landed property
You already know that:
Land investing provides rich-type productivity returns.
And yes.
With land investment, instead of doing a housing development that aid in rental property, flipping houses, e.t.c
You can easily invest in landed property, hold it for some years and sell it for a higher price.
Cool, right?
But.
Chances are that you already know that land investment in Nigeria appreciates faster and more quickly.
…Right?
And if you don’t, you already hear me say this.
So, how did I know?
Because Eystone’s recent data report indicates that:
- 70% of landed property in Nigeria scales out in terms of profitable returns.
And if you’re to consider the numbers.
…Especially when it comes to:
- Flipping land
- Leasing
- Raw land
For example,
Let’s say you buy a home that you can easily rent out in the name of rental services.
First, you’ve to study the market in terms of the tenancy rate.
On the other hand, you probably have to consider what you’re going to see as returns per year.
To do that, you’ve to know how much you want each property to rent for in terms of price.
Let’s say, you have the overall budget to be exactly 10 million per year.
And yes.
…You can’t ignore the expenses rate.
But, as for land investment, chances are that your property will start to scale out even the moment you already buy it.
Or have you not heard that:
Some land properties see an increase of 15% in just 7 days.
In fact:
We did a survey that shows that land investment comes with a big potential of making investors see 40% returns in 1 month.
And that’s no exaggeration.
It’s just the simple truth.
Why should I buy land?
This answer can be provided in two ways:
As…
- Financial freedom
- A long term passive income
In either case, you’ve free access to become a wealthy person earning over 7 figures each year.
To give an idea of what this looks like, here are some examples of wealthy people that currently invest in real estate to gain wealth successfully.
First, think about your favorite artist, Davido.
According to Vanguard news, Superstar singer David ‘Davido’ Adeleke has bought land in the highbrow Banana Island to his build his dream house.
You may think people and other famous personalities don’t ever have to worry about investment problems.
But, that is simply not true! in fact, quite often, they do invest more and try to build wealth extremely fast.
Or Take Pastor Paul, head pastor of the house on the rock.
That’s crazy.
What about famous celebrities?
According to realtymogul, Professional athletes. Movie stars. Models. They all have money. And they all love making a fortune in real estate.
That’s because they know that real estate investing is one way to potentially build long-term wealth.
From buying and selling, to starting real estate businesses, Hollywood’s hottest are making bank in real estate.
One of the things that land investment pretty much does well is that it’s a long-term game, so it mostly provides value and appreciation the more years it stays.
And this has helped investors see profitable returns over time.
This means that land investing provides something of value to investors whereas other investments like stock do not.
But, as for land investing, there’re many benefits it has to offer(yes, the list is really long).
- High passive income
- Zero risks/minimal risks
- Profitable returns
- Long-term appreciation rate
- It provides different investment ideas
- High scalability and more.
So, if you’re ready to take step towards financial freedom then read on.
As a demonstration, the real estate market is even getting more competitive in Nigeria.
In fact:
…Even realtors are growing faster than the population.
And yes.
Even the high demand for property and the boom in luxury lifestyle and the fact that land is one asset that never depreciates is a big bonus.
Now, we have millennials who are tech gurus.
Do you know what they do?
Just because they’re tech gurus, they go online to check for properties before buying them.
In this case, real estate investors have to make smart decisions that will eventually make them buy.
And why?
…It’s just simple
The real estate industry is shifting to the millennial age.
Is buying land in underdeveloped areas good enough?
Simply put:
Why do smart investors buy land in underdeveloped areas?
Well.
…As you give people more and more property value where they’ll eventually see an increase in their investment.
These buyers will arrive at a point where they want to reciprocate the benefit that they’ve seen.
For instance,
If we talk about Ikoyi, banana island, VGC, Lekki, and more.
These areas are already developed.
As a result, you can’t buy property at a cheap price.
Think about this.
What if you think about buying land in places like Epe, Ibeju-Lekki?
I mean, these are areas the government is investing in.
Right?
And guess what.
What do you think the land will sell for in the next 3 years?
Of course, yes.
When you buy land, you’re assured of minimal risks.
But, when you buy land in underdeveloped areas you’re assured of great returns.
And how did I know?
Take, one of our clients.
This lady went to doing over a 30% increase in return on investment just by investing in one of our properties in Epe, Lagos.
As a real estate company, we help our clients become better investor and educate them about the better way to make their property appreciates faster.
And that is the reason that many investors come to a point where they want to buy property from us.
And why?
…The reason is simple.
We don’t just sell to investors.
First,
We try to educate them on what type of investment fits their needs.
Whether as:
- Commercial purposes
- Residential property
- Buy and hold
- Flipping houses or land, etc
Either way, buying land in underdeveloped areas gives you the luxury of buying land at not too exorbitant prices but with higher returns.
And the truth is:
Land investing is not only for top government officials or the rich moguls with financial stamina.
The good news is:
…Land investing is for all of us, the low class, the middle class, and the high class.
The market is open to anyone and everyone, even the uneducated, can own a land property for profitable returns in the nearest future.
Another important piece is that.
If you are to buy landed property, you don’t have to hop on every property recommended to you.
…You still need to scrutinize the property.
The better way to go about this is to make sure that the location is viable, and the market fits your investment needs.
And that way you can see your investment returns back in whatever way you plan to raise it back either by renting out the property or leasing the land.
Should I use a real estate agent to buy land?
Of course, a big yes.
You can hire a real estate agent to navigate the market and this will aid you to reduce the risk of investing wrongly.
With an expert on your side, you’ll be sure t make investment moves that’ll give you the returns you want.
Is land investing profitable?
The answer is simple, it’s a big yes.
If so.
Here are the things to know.
- In the long term, the land is cheaper to own.
We can safely say, that land is an abundant resource.
And, hey!
It’s inexhaustible which means it perfect for investment
As a result, the best investment you can make as a smart real estate investor is purchasing underdeveloped land in peak areas in Nigeria such as follows:
- Ibeju-Lekki(Lagos state)
- Epe(Lagos state)
- Akute(Ogun state)
- Mpape(Abuja)
- Apapa(Lagos state)
- Ikorodu(Lagos state)
And to tease you more.
The perk of buying vacant land includes no maintenance fees and it just sits and appreciates.
Great, right?
And it brings you more options of leasing out the land for farming or livestock, rearing if it is fertile land, whatever way.
- Land investing is safe
If you want a system that guarantees your money back and more with minimal risk.
I can safely assume that when you buy land through a trusted real estate agency like us, you’re guaranteed great returns.
- Land investing can generate multiple income streams
The good news is:
When you purchase land in areas that are yet to be developed, you can make money from the land by renting it out to developers or small business owners.
These people will pay stipends back to you either yearly or monthly.
Through this system, you can even get back the money you invested into the purchase in 1-2 years.
And guess what.
Even with a low-budget buy, you can rest assured that your land worth will compound over time.
This way, you’ll reap the fruit of your returns.
Facts to know before purchasing land
Well.
Land prices in Nigeria vary from state to state.
What this means is that you’ve to strategize well about what you can afford and where would be suitable for your long-term investment plans.
On the other hand, there’re lands that are still in control of the government.
A good way to know, which one:
First, check out the land document(the title of the land).
And if you’re unsure how to go about it, read this guide. What is the excision of land?
Secondly, meet with certified registered real estate agents who know their onions around.
Or better still, you can work with a real estate company, and my team is ready to work with you.
- Land grabbers and scam zone
Before now, you’ve heard that buying land is risky.
Right?
You’ve got a lot of people told you that you may probably fall into the hands of 419ners who will try to swindle you out of your hard-earned money.
Well, they may be right.
Sometimes, they are also wrong.
Here’s the thing.
One way you can dodge the bullet is by working with a lawyer.
The lawyer will carry out a simple task, which is to double-check the property papers and run a background inspection on the owners to confirm the statement of ownership.
Another important piece is that:
You need to hire a surveyor when going for land inspection.
The result?
It will help you ascertain some pitfalls on the property.
Finally,
Can I buy land with a low budget or little money?
The best option is:
First,
…You can lease the land and thereby pay the lease charge along with a down payment for the land itself.
But, this will only work if the landowner is willing to compromise and strike a deal with you that allows you to make the land payment in installments in which case a contract is drawn stating the terms of payments.
#pro tips
For every purchase you make, you’ve to ensure that it is followed by all necessary documents that prove you to be the new landowner.
In fact.
Some system allows you to take loans to fund your land purchase.
Or you could otherwise make it a joint purchase, split the land cost with a trusted friend, and make the deposit.
Final thought
If you’re a beginner in real estate.
First, you’ve to know your onions and try to ask the right questions.
The next step is.
Work with certified and credible real estate companies like us or agents.
Which will do well for your investment.
Because why:
A real estate agency gives you the liberty of consultations or more land options in the area you’re looking to own land as their network is large and they have more agents in service.
As a result, you can work with whichever makes you comfortable.
So, if you’re about to invest in land property, you can work with my team.
We’ll be glad to work with you.
So, if you find this super guide on land investing helpful.
Don’t forget to share it with your loved ones.