According to Andrew Carnegie, ”90 % of all the world millionaires have stakes in real estate investment”. Furthermore, Real estate investments have produced more ROI than in all industrial investments combined.


Why is that?

What is this investment?

Why are world elites Stacking up their bank account through this investment?

The answer boils down to few reasons;

Real estate investment is everlasting:
One key benefit that attracts smart investors in real estate investments is that it’s an imperishable asset. Unlike its counterparts, land does not come with an expiration date. It’s indestructible, it cannot be lost, stolen or can it be destroyed. Once acquired and fully paid for, it lasts forever


Appreciation
The growing population of the human race is driving the demand for land. This increase in demand for land leads to increases in price. As the need to cater to the need of the growing population, the prices will always go up.


inflation-
The Uber wealthy classes are always mindful of inflation; will my money today buy the same value of products in 3 years? As a result of inflation, a specific amount of currency will buy less than before over some time. Inflation isn’t always bad because investors can plan for inflation by investing in assets that outperform the market during inflationary climates. As inflation rises, so do property values, and so does the amount a landowner can resell their property or charge tenants. This results in the landowners making more money over time. This helps to keep pace with the rise in inflation. For this reason, real estate income is one of the best ways to hedge an investment portfolio against inflation.


Passive income
One thing the rich understand better than anyone else is ”diversification”. The fact that one tree doesn’t make an ocean. In a bid to multiply wealth, the elites often distribute their asset into several investment portfolios with real estate taking a large share of the stock. The stability and potential return of the real estate market makes the investment not only safe but a means of generating passive income

One of the perks of investing while working full time is to create a steady income stream that assures you of lifetime security that can be converted to immediate cash or used as a further investment for future wealth creation. As a business person, an entrepreneur, or a stay-at-home parent, property investment serves both immediate and futuristic purposes especially when it is gotten through the right medium.

The world of real estate is vast, for a beginner looking to venture into an investment, it might seem scary and intimidating. However, like every new journey, it’s one step at a time. By going through this write-up, you will understand everything a beginner needs to know before venturing into real estate investment.

If you are a beginner in the real estate sector or have experience in real estate investment, in this blog post you will get first-hand information on clear-cut reasons why you should invest in real estate. With our proven experience over time, we hope to make your transition into the real estate sector as smooth as possible.

guide to real estate investment

Real estate investment is quite vast as it covers areas such as Development, Sales and marketing, Brokerage, Property management, Lending, and Professional services. Research has shown that no matter what the market presents, real estate still offers many moneymaking opportunities for both first-time and experienced investors. These opportunities can be through either on a rental basis, homeownership, or land banking. This edition will focus more on the fundamental aspects to consider when putting together an investment plan.

One of the major things to look out for before buying any property especially when considering high return on investment is;



1. Land Title in real estate investment
It makes sense to start this discussion with the elephant in the room: land titles. For every new investor in real estate that we encounter one question, we always come across is ” what is the title”. The importance of Land Titles in real estate cannot be overemphasized. It formes the very foundation of real estate investment. Any oversight on land titles can lead to loss of funds, damages to lives and property. Before you acquire any property, it is pertinent that you ask, know, and verify what title comes with the property. Let’s walk you through different types of land titles to help you better understand what to look out for when buying any piece of property


C OF O
Arguably one of the most popular land titles in Nigeria and justifiably so because any property with a C of O guarantees the owner freedom from government acquisition. Certificate of Occupancy is usually issued by the State Government and it connotes that the state government has officially leased the piece of land to the applicant, for 99 years.

Excision
Government can decide to release a parcel of land back to the indigenous owners or some company as a form of compensation for residential and commercial developments. Such properties are considered excised, and an excision document is issued. This type of title also signifies that the property is free from government acquisition. Any excised property, when verified is safe to purchase

Gazette
A Gazette is an official record book where all special government details are spelled out, detailed, and recorded. A gazette will show the communities or villages that have been granted excision. This document shows the number of acres or hectares of land that the government has given to them. It is within those excised acres or hectares that the customary landowners or company are entitled to sell to the public.

Governors consent
Governors’ consent is considered a second-generation C of O. There can only be one (1) Owner of the Certificate of Occupancy on any property and it can not be replicated for another person once the land has been sold or transferred to another person. Any subsequent buyer will have to obtain a governor’s consent on their property before it can be seen as a legal transaction by the government. it’s essential a C of O property that has transferred ownership which means it’s a good property to invest in.

Deed of assignment and registered survey
This is simply an agreement between two parties over the landed property in which one party relinquishes their power of attorney and title to the other party. The deed of assignment is an important legal document that transfers interest or assigns the title of property from the seller (an assignor) to a new buyer called (the Assignee). The deed of assignment is assigned after the completion of any land transaction and the assignee now holds all the legal rights on that property including any future sales. It is also important that when the deed of assignment has been exchanged between the parties to the transaction, it is recorded or registered with the appropriate land registry where the land is situated for perfect purposes

Recommended reading: Different land title documents in Nigeria and their effect on real estate investment or land titles in real estate
2. Role of LOCATION In Real Estate Investment
Real estate investment comes in a different format, rental apartments, real estate development, land banking, etc. location plays a varying degree of importance in each form. For instance, the level of development in a location of raw land for the purpose of land banking is somewhat irrelevant compared to land for ”buy and build”
purposes.
For land banking, investors will have to access the future worth rather than the present state while a ”buy and build” property relies heavily on the level of development in the area.

The location is a vital component of real estate investment that any new investor should keep an eye on. location can determine how quickly you can get your ROI. location also affects the value and price of any property. for example lands in Lagos go for an average of N30,000,000 on the mainland and N130,000,000 on the island and this is due to the high level of real estate investment activities in the metropolis. Apart from Lagos state, properties closer or on major access road gets a lot of demand and hence the price is higher. However, Smart investors are securing properties in developing sites of Lagos i.e ibeju lekki as they can foresee the economic value of such areas in the future. Other investors prefer to buy properties lower in price and sell later when the demand and price are high.


3. Budget
The budget is the first thing to be considered when buying land. it does not matter if you have determined to buy land in Lagos or any other part of the country, the most important thing is having a budget. it is not about just having the desire to buy land, the real question is do you have the budget for it?

Irrespective of the amount you might have saved, it is always important to make research on the cost of buying land and the extra expenses that are associated with it. Irrespective of the real estate company, it’s important to ask for any other extra charge aside from the price of the property. Generally, most companies will have the following extra charges but not limited to this

Deed of an assignment fee
Registered survey fee
Plot demarcation fee
Agency fee
Development fee
having a knowledge of all these extra charges can help prepare your mind and pocket before venturing into the investment cycle

Continue reading: https:///3tVoBth