It is no longer news that inflation is currently ravaging Nigeria, affecting all economic sectors of the nation, including the Nigerian real estate sector. With this, experts insist that there is no better time to invest in real estate than now.
However, there is still no better time to invest in real estate than now. This is because any investment in real estate can only appreciate, as real estate never depreciates.
Globally, households are spending over 50% of annual income against the popular 30% rule , to live closer to the city centers.

The global rule regarding rent to income ratio is that rent should usually be 30% or less of income. This means that from an individual’s annual income, the permitted spending on accommodation should be one-third of his or her total income. In a recent research, we were analyzing annual spending on rent across the world and found that the 30% rent guideline is usually not the case. In some places like the UK and US, households spending on rent are closer to 50%, and in Lagos, our research has shown that some households are spending up to 70% of their annual income on rent. This poses some questions of interest, especially when you consider the other costs associated with living and working in Lagos state.
Bringing this home; Surging inflation, uneven urbanization and population increase in Lagos, and other factors, have fueled a hike in Property price in Lagos. Our interaction with a number of Lagos residents suggests that the larger number of the city’s population are barely working to pay rent and transportation. According to a 2016 report by Euromonitor International, average household spend on housing and transport in Lagos was 71% higher than the rest of the other states in the country. Housing alone in Lagos, accounted for over 74% greater household expenditure in 2016 compared to the rest of the country. With the high rate of inflation and surging prices in rents across Lagos, these numbers today are definitely higher than what was reported by Euromonitor in 2016. Cost of construction keeps rising, making it difficult for property prices to fall. With this in mind, how then can the average person reduce the burden associated with renting an apartment? Considering the high cost of rents in Lagos, more than half of Lagos’ population would need to pay as high as 80% of their annual income if they were to get decent accommodation in neighbourhoods close to the city centres.And also the inflation ravaging the country has increase the price of land which has left many middle and low income earners in Nigeria with mentality that owning a land in Nigeria is only for the so called “rich big boys”. This should not be the case. In the following paragraphs, we will be discussing some tips to help you avoid such burdens and make you maximize your income for better household living in Lagos.

HERE ARE 3 WAYS TO MAXIMIZE YOUR INCOME ON YOUR HOUSING IN LAGOS
1. Pick budget-friendly locations and rent only what you need.

The bigger the space and size, potentially the higher your rent. We understand the fantasy of living in luxury homes but your buying power should be the starting point when choosing a property,so it is important that you rent what you need. It is not necessary to have a guest room when you do not have visitors who frequently stay over. Another growing trend that we have found very helpful in reducing your costs is shared apartment options. Outside the security and privacy-related challenges, sharing an apartment can cut your rental spending to almost half and when properly done, are a good cost-saving strategy.
2. Relocation and renovations? Major in the major and minor in the minor.

Yes we get it, some houses are in really terrible forms and it costs a lot to make them habitable but sometimes our renovation costs skyrocket because of our compulsive need for some ‘nice-to-haves. There are expenses on our renovation checklist that if we did a proper cost-benefit analysis, they have no business being there. For example, it may not be necessary and important to paint a newly completed apartment. You may not need to hire a moving company to transport your items to the new house. As much as possible, you can leverage on your network and friends to assist with some relocation needs to cut expenses. A few friends can help you move some items in their cars on a weekend. Someone within can also help you with other minor things that can be very expensive when outsourced. You may consider hiring freelance cleaners as against hiring a janitorial company.
3. Budget your income to own or buy a land in lagos in affordable locations
With the current high inflation ravaging the country economy,now is the best time to own a plot of land due the further future predicted rise of inflation that will adversely affect the real estate sector because land always appreciates in value even in times of economic woes.
Buying land for whatever purpose is indeed a profitable act. However, the level of returns you receive is highly dependent on your understanding of a few factors.
People buy lands for personal housing projects such as building a home; rental or lease purposes; and commercial or industrial use.
But in this case buying land for housing matters a lot.



Buying a home is a powerful decision. It’s no wonder why so many people view it as the best long-term investment, even when inflation is high. When you buy, you help shield yourself from increases in your housing costs and you own an asset that typically gains value with time. If you want to better understand how buying a home could be a great investment for you, comment below or contact STOCKLAND HOMES AND PROPERTY ON +2348134960955.