Real Estate Investment in Nigeria
Real Estate investing involves the purchase, ownership, management, rental and/or sale of real estate for profit.
When it comes to investments, there are primarily two things people invest for: capital gains and cash flow.
Capital Gains are the one-time profit you make on the sale of an investment. The strategy behind capital gains is to buy and sell. In order to realize capital gains, you must sell the asset. As long as market prices go up, capital-gains investors win. But when the markets turn down and prices fall, capital-gains investors lose.
Cash Flow is an ongoing stream of income you receive from an investment. You may receive this money on a monthly, quarterly or annual basis, depending on the investment. The strategy behind cash flow is to buy and hold.
Now we will be looking at long term and short term investment as it affects capital gains and cash flows.
I have carefully studied, analysed and curated various products and packages offered by some Estate developers in Lagos, Nigeria based on my experience in the industry.
I will be explaining them one after another as we move on.
Under the long-term investment we have what we call LEGACY INVESTMENT
This LEGACY INVESTMENT is a premium product offered by one of the Estate developers I work with.
It was created to provide a life time investment for clients or investors which yield over 300% returns on investment (ROI).
This investment opportunity provides access for the investor to build wealth through the product that brings about a diversified investment exposure to own a real estate of their dreams with relatively reasonable amount of capital.
It gives investors the opportunity to partner with the estate developer leveraging on the product(investment package) to own an Estate in their name(investor's name).
The product is tailored to:
1. Give the investor returns(capital invested plus profit accrued) within 6 to 12 months.
2. A lifetime 20%(after tax) profit sharing on management fee paid my occupiers of the estate.
3. Help investors build financial portfolio in real estate.
4. Serve as a performing asset that works for the investor.
5. Serves both long-term and short-term capital needs and offers less risk to the property which is invested.
Now let me break it down in a way it would be easier to understand, let me use myself as a case study.
Mr Kennedy wants to do a legacy investment with an estate developer.
He invested 10M naira or above on an Estate (land) the company already owns or any chosen location of Mr Kennedy's choice.
Mr Kennedy invests the 10M naira to own the Estate in his name (preferably KENNEDY ESTATE) without actually being the one to develop and manage the estate as the developer will be shouldering that responsibility.
Under this arrangement, the developer buys the estate(Land), divides it in plots, resells and allocate to buyers(land owners) after which Mr Kennedy gets his 10M naira back with 60% of the profit generated.
And then he will keep earning 20% returns from Management fee generated from the estate for life(which his descendants can inherit too).
When it comes to investments, there are primarily two things people invest for: capital gains and cash flow.
Capital Gains are the one-time profit you make on the sale of an investment. The strategy behind capital gains is to buy and sell. In order to realize capital gains, you must sell the asset. As long as market prices go up, capital-gains investors win. But when the markets turn down and prices fall, capital-gains investors lose.
Cash Flow is an ongoing stream of income you receive from an investment. You may receive this money on a monthly, quarterly or annual basis, depending on the investment. The strategy behind cash flow is to buy and hold.
Now we will be looking at long term and short term investment as it affects capital gains and cash flows.
I have carefully studied, analysed and curated various products and packages offered by some Estate developers in Lagos, Nigeria based on my experience in the industry.
I will be explaining them one after another as we move on.
Under the long-term investment we have what we call LEGACY INVESTMENT
This LEGACY INVESTMENT is a premium product offered by one of the Estate developers I work with.
It was created to provide a life time investment for clients or investors which yield over 300% returns on investment (ROI).
This investment opportunity provides access for the investor to build wealth through the product that brings about a diversified investment exposure to own a real estate of their dreams with relatively reasonable amount of capital.
It gives investors the opportunity to partner with the estate developer leveraging on the product(investment package) to own an Estate in their name(investor's name).
The product is tailored to:
1. Give the investor returns(capital invested plus profit accrued) within 6 to 12 months.
2. A lifetime 20%(after tax) profit sharing on management fee paid my occupiers of the estate.
3. Help investors build financial portfolio in real estate.
4. Serve as a performing asset that works for the investor.
5. Serves both long-term and short-term capital needs and offers less risk to the property which is invested.
Now let me break it down in a way it would be easier to understand, let me use myself as a case study.
Mr Kennedy wants to do a legacy investment with an estate developer.
He invested 10M naira or above on an Estate (land) the company already owns or any chosen location of Mr Kennedy's choice.
Mr Kennedy invests the 10M naira to own the Estate in his name (preferably KENNEDY ESTATE) without actually being the one to develop and manage the estate as the developer will be shouldering that responsibility.
Under this arrangement, the developer buys the estate(Land), divides it in plots, resells and allocate to buyers(land owners) after which Mr Kennedy gets his 10M naira back with 60% of the profit generated.
And then he will keep earning 20% returns from Management fee generated from the estate for life(which his descendants can inherit too).
Comments
Post a Comment