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Buying and establishing real estate is a great investment strategy that can be both lucrative and fulfilling. Quite different from bond and stock investors, potential real estate owners can decide to use leverage to acquire a property of choice. This is achieved by using leverage to pay for the total cost of the property acquired upfront, then completing the payment off the balance as time progresses.
Many of the real estate investors’ primary purpose of investment is profit maximization and long-term investment. Flipper investors buy property to resell at a higher price to earn income, while other real estate investors simply want to be a landlord of their rental property. Before we proceed, let’s find out the meaning of commercial real estate.

Commercial real estate is the process of acquiring real estate mainly for the purpose of doing and generating income. This type of real estate can either be for multi-family residential, industrial purposes, or a combination of both. However, we have the various categories that make up commercial real estate which include office space, retailers’ shops, hotels and resorts, malls and restaurants, and even healthcare facilities.

Commercial real estate yields rental income in combination with other capital appreciation on the property as time progresses, although investing in commercial real estate always needs more sophistication and huge amounts of finance from investors than residential real estate.

How does Commercial Real Estate Work?
Just as the name implies, commercial real estate is available for industrial/commerce, multi-unit rental and can also serves as a residential space for tenants. It works through different methods that include:

Long-term Commercial Lease: Here, the property is leased by the investor or group of investors who own the property to the interested user for a long time, like 5-10 years.

Short-term Rental Period: The property is rented for a short period, like 12 months after the rental rate has been concluded by both parties. It can even be leased for a short period of a month.

Flipping Commercial Method: This is the process whereby an investor or group of investors simply acquire a property or some properties with the aim to resell them. They buy at a cheaper rate and resell at a higher rate for profit. Some investors can keep the property for as long as they wish before reselling but a large percentage resell within a short period (like 3 to 6 months) of it being purchased.


Managing Your Commercial Real Estate
This can be done by the owner or through the services of a good commercial real estate management firm that aids in the proper maintenance and management of the property. The firm assists the owner to find and retain tenants, manage, and coordinate the activities of the property. Most times, the services of a commercial real estate firm is highly recommended because of their vast knowledge of the rules and regulation, government policy guiding real estate investment in our country


Is Investing in Commercial Real Estate in Lagos a Good Idea?
Lagos is the world’s sixth megacity, a major economic hub in Nigeria with an estimated population of 14,862,11. Lagos population is increasing 10 times faster when compared to New York City and Los Angeles and is bigger than the population of 32 different African nations combined. Of course, with this kind of population, housing requirement is such a hot cake and a core investment area. As the population of Lagos grows, also does the demand for housing and commercial real estate.

Housing in Lagos
Housing has been one of the most challenging issues with urban areas, especially in Lagos State due, to the increasing inflow being recorded yearly. Over 500,000 people relocate to the megacity each year, this has also caused a housing deficit of up to 17 million units. Thus, this deficit provides a market and brings an opportunity for real estate investors who’re interested in building for commercial purposes. The cost of accommodation in Lagos State is very high, but even at this price, there’s inadequate housing provision for the inhabitants of the state.

When compared with the cost of renting a commercial apartment in other states such as Ogun, Anambra, Oyo, Enugu, Kaduna, Cross river, and so on. Investors can never go wrong when it comes to setting up commercial real estate in Lagos, as long once they judiciously follow the standard guiding the building of a commercial real estate investment in the state.

But this can’t be assured for other states. For instance, I have a client who first set up a commercial real estate (a retailer’s shop outlet) in the rural area of Mowe, Ogun State but he hasn’t been able to recover 60% cost of the building for over 5 years now. This is a result of the low population and the low cost of living in the area. Meanwhile, that same client setup a similar investment at Sangotedo, Lekki, and has made over 200% return on investment on the property.

I won’t be wrong if I state that commercial real estate in Lagos a good idea and a huge platform for one to invest in because of its market availability on the ground. I believe that commercial real estate in Lagos is favourable, depending on your purpose of investment.

Dennis Isong helps individuals invest right in real estate. For questions on this article or enquiries about real estate, email dennis@Landproperty.ng or WhatsApp/Call +2348164741041

Buying a house or building a house: Which is cheaper?


Now that you have decided to have your home, you may need to rethink your decision. You should know whether to build from scratch or go for an already-made house.

You will need to consider many factors, whether you are buying or building, so that you don't spend more than is required in your hunt for a better home.

If you want to buy a house, one of the things you usually consider is the cost. Although many homes come with a relatively low price but ensure that you don't buy a house, you will eventually need to spend more on repairs; this may even total the cost of building a home.

Why building a house may be better

The great benefit of building your house is that you can easily customize the home to how you want it to look. You can select the flooring and ceiling type you want and choose the kind of paintings that befits you. Here are some other benefits of building a house that you need to consider before you go ahead and buy an already-made home;

You can quickly build your home to meet the latest design used all over the world.
You will not need to worry about sudden repair since you build everything from scratch with new materials.
You will not need to worry about competing homebuyers who may be interested in the same house you want to buy.
Your home has no initial owner since it is new;
The downside to building a house

Building a house can be particularly tasking, especially if you move into the town afresh to start a different phase in your life's journey. You may consider going for an already-made home because of the time and energy that you may expend through building one. The downside of building a house are;

You may find out that the cost of materials is high compared to buying a made-home.
When you consider the time to purchase a house which is about 45 days, you may want to avoid building one, especially if you are looking to settle down quickly.
Building from scratch involves having an excellent negotiating power with your building contractors, and if not, you might spend more than you can afford.
You may have difficulty in choosing the type of materials or design you want; you will also need to make other decisions such as choice of flooring, ceiling, painting, etc.
What if you decided to buy a home?

Besides the cheaper cost, buying a home may be emotionally satisfying because you will no longer pass through the stress of making tough decisions when you need to build one. Below are some reasons why you may opt for that already-made home.

You can negotiate quickly since such a homeowner may be looking to sell it as soon as possible.
You can quickly move in without the stress of worrying about unfinished constructions or any other thing.
It is easy for you to adjust the home to your specific need when you eventually move in.
Your new home will probably have a landscape of its own already, so you will not need to grow trees or lawns and perhaps worry about the type of flower you want in your environment.
The downside of buying a home

It is not convenient to build a home, but neither is buying a home the perfect fit. You will not always get the exact lookout you want in a house when you buy it. Hence, you will need to adjust to the reality that this home wasn't initially yours. Some other reasons you may want to rethink your decision before you buy that home are;

You may need to spend more on maintaining many appliances; this may use up much of your income if the house is old because you may need to replace many of these appliances when they no longer work.
You may become remorseful, especially if you settled for less than what you deserve or compromise on so many things while the buying transaction was going on.
There may be competition in the market, especially if you buy from a seller's market.
Buying or building: The cost-effect

It is no doubt that you will agree by now that buying a home is relatively cheaper than building one. Whether you are deciding to buy or build will now entirely depend on you and the type of neighborhood you find yourself. Be aware that buying a house in some area may be equivalent to making one since all these depends on the predominant real estate market within that location.

If you are in an average location, you may opt to buy a house because the cost will always be cheaper. If you are looking into having various personal customizations for your home, get ready to build one.

What next after making your decision?

Now that you are ready to either build or buy your home, be also prepared for the cost implications accompanied by your decision. Ensure that you have more than the total amount you will need to purchase or build that house. Having more than enough enables you to be at rest in case of any sudden and unforeseen contingencies.

Final Thoughts

Determining whether to buy a house or build one is a difficult decision, and many factors come in place before you could eventually act on your decision. But as far as price is concerned, buying an already-existing house is cheaper than building.

When you buy an already-made house, you will no longer need to stress yourself about planning and other associated decisions while building the house. But be careful that you negotiate your way while buying so that you don't buy an expensive house worth less than its actual value.

Dennis Isong Helps Individuals Invest Right In Real Estate. For Questions On This Article Or Enquiring About Real Estate Email: Dennis@Landproperty.ng or Whatsapp/Call +2348164741041

Real Estate is one of the best assets not just in Nigeria but across different countries. It has lots of investors being able to increase their net worth and returns on investment (ROI) through Real Estate. Most were able to achieve their financial goals faster than they earlier thought they could, establish a great opportunity for their families, and secure a stable retirement plan.

However, trying to invest in Real Estate is not a child’s play, with the right knowledge, skills, and determination, you’ll be able to make money buying and selling Real Estate. Otherwise, one may make mistake just like Mr. Taiwo who without proper research invested in a 4-bedroom apartment at Lakowe, Ibeju Lekki because he was in a hurry to move his family to Lagos. Luckily for him, he only made a part payment of a supposed N15 Million Apartment before he found out he has been operating with a false property document.

Therefore, it’s very important that you religiously follow through with this article to know those mistakes you should avoid when buying/investing in Real Estate.

Not Engaging any professional: One major mistake some investors make is not engaging any professional when getting a property of their choice. Some just manage to pick anyone not knowing whether the person is a professional in the job. This is the easiest way to lose your investment if that’s what you want. Of course, I know that’s not what you want. So, for a greater ROI, you must involve the activity of a professional when dealing with property or investment general.
Poor Planning Budget: Many investors failed to make a proper planning budget before getting a property thus making the wrong choice of property. You must have a first-hand purpose on why you’re acquiring a property, the financial budget of it, your expected return on investment, and many more. This helps to make the right choice of property you plan to purchase.
Not consulting the right professionals: It’s quite sad that some investors treat their “investment” or “prospective investment” without caution. This is a fatal error consulting the wrong professional, it’s almost like you’re not engaging any professional at all. Just like the adage which says, “when the blind leads the blind, that eventually ends up in the pit.”
Therefore, never underestimate the guidance of a professional Realtor in getting a Land/Housing property, if you truly value your hard earned money.

Urgency: Being in a hurry to acquire property may not be the wisest decision in the long run of your investment. You actually need to take your time to ensure you’re selecting the right property for your original aim of acquiring it. Another point is to avoid “hard I know” take your time, run a thorough background check on the property, documents, agreement, and others. This may save you a lot of headaches in near future.
Involving Emotions:I heard a story of a woman that invested in a landed property with a Real Estate company just because her little sister was undergoing a service year (NYSC) with this company. So, out of emotion and also to encourage her sister, she decided to key in with them in one of their property plans of 6-month payment. Little did she know that the company hasn’t fully acquired the land as they should, they don’t have any proper documentation and others. The land was confiscated by the government for a supposed project and the investors weren’t compensated because the land wasn’t theirs yet.
Meanwhile, the woman is working very hard to get back her fund from the company but as you know not without the stress associated with such problems. This is problem won’t be there if she didn’t involve emotions when buying the property and if she did the proper investigation of the property. Check out the next mistake to avoid and get more info on the proper investigation.

No proper Investigation: This is the inability of not engaging in a full investigation of the property you want to purchase. With proper investigation, it ensures that all information concerning the property you intend to purchase are correct and not fake. Also, to make sure important details concerning the property are well documented. For instance, the Land/property title is correct and properly registered. Just like I stated above, consulting the right professional like a Lawyer can help solve any issue that might relate to wrong documentation.
This section can’t be over-emphasis, inability to procure a proper research can easily lead to one losing his investment when any issue comes tomorrow. Endeavour to properly research the property you want to buy for the safety of your investment, run a background check make sure the property is the perfect choice for the purpose of your investment.

One of my Client once had this kind of ugly incident concerning a fake document to the intended property, he wanted to purchase at Mowe, Ogun state. Fortunately for him, he had a professional Lawyer who was able to detect in time the fake document being presented by the fraudster that called himself a real estate agent. Avoiding this particular mistake will save you so much headache from fraudulent companies and even individuals.

No Inspection: Another grave mistake many investors make is not going to inspect the property they want to buy, not even once. They blindly pay for a property trusting that the company may keep to their own part of the bargain. Unfortunately, things don’t work that way, ensure you go for an inspection of the property you’re interested in buying before making up your mind on payment. If possible, visit again and again before finalizing your payment with the company. Also, after payment, request the allocation of your property and start fencing immediately if possible.
In conclusion, investing in real estate comes with lots of benefits; from the appreciation, the advantage against inflation to the positive cash flow, and many more. Also, knowing how to tap through its opportunity can cause a drastic change in one’s financial goals with a maximum ROI. Watch out for my next article to know how to you can tap through the various streams available in Real Estate.

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Source: https://www.pulse.ng/business/why-you-should-invest-in-real-estate-in-nigeria-in-2021/40wqc1r

Real Estate is one of the best assets not just in Nigeria but across different countries. It has lots of investors being able to increase their net worth and returns on investment (ROI) through Real Estate. Most were able to achieve their financial goals faster than they earlier thought they could, establish a great opportunity for their families, and secure a stable retirement plan.

However, trying to invest in Real Estate is not a child’s play, with the right knowledge, skills, and determination, you’ll be able to make money buying and selling Real Estate. Otherwise, one may make mistake just like Mr. Taiwo who without proper research invested in a 4-bedroom apartment at Lakowe, Ibeju Lekki because he was in a hurry to move his family to Lagos. Luckily for him, he only made a part payment of a supposed N15 Million Apartment before he found out he has been operating with a false property document.

Therefore, it’s very important that you religiously follow through with this article to know those mistakes you should avoid when buying/investing in Real Estate.

Not Engaging any professional: One major mistake some investors make is not engaging any professional when getting a property of their choice. Some just manage to pick anyone not knowing whether the person is a professional in the job. This is the easiest way to lose your investment if that’s what you want. Of course, I know that’s not what you want. So, for a greater ROI, you must involve the activity of a professional when dealing with property or investment general.
Poor Planning Budget: Many investors failed to make a proper planning budget before getting a property thus making the wrong choice of property. You must have a first-hand purpose on why you’re acquiring a property, the financial budget of it, your expected return on investment, and many more. This helps to make the right choice of property you plan to purchase.
Not consulting the right professionals: It’s quite sad that some investors treat their “investment” or “prospective investment” without caution. This is a fatal error consulting the wrong professional, it’s almost like you’re not engaging any professional at all. Just like the adage which says, “when the blind leads the blind, that eventually ends up in the pit.”
Therefore, never underestimate the guidance of a professional Realtor in getting a Land/Housing property, if you truly value your hard earned money.

Urgency: Being in a hurry to acquire property may not be the wisest decision in the long run of your investment. You actually need to take your time to ensure you’re selecting the right property for your original aim of acquiring it. Another point is to avoid “hard I know” take your time, run a thorough background check on the property, documents, agreement, and others. This may save you a lot of headaches in near future.
Involving Emotions:I heard a story of a woman that invested in a landed property with a Real Estate company just because her little sister was undergoing a service year (NYSC) with this company. So, out of emotion and also to encourage her sister, she decided to key in with them in one of their property plans of 6-month payment. Little did she know that the company hasn’t fully acquired the land as they should, they don’t have any proper documentation and others. The land was confiscated by the government for a supposed project and the investors weren’t compensated because the land wasn’t theirs yet.
Meanwhile, the woman is working very hard to get back her fund from the company but as you know not without the stress associated with such problems. This is problem won’t be there if she didn’t involve emotions when buying the property and if she did the proper investigation of the property. Check out the next mistake to avoid and get more info on the proper investigation.

No proper Investigation: This is the inability of not engaging in a full investigation of the property you want to purchase. With proper investigation, it ensures that all information concerning the property you intend to purchase are correct and not fake. Also, to make sure important details concerning the property are well documented. For instance, the Land/property title is correct and properly registered. Just like I stated above, consulting the right professional like a Lawyer can help solve any issue that might relate to wrong documentation.
This section can’t be over-emphasis, inability to procure a proper research can easily lead to one losing his investment when any issue comes tomorrow. Endeavour to properly research the property you want to buy for the safety of your investment, run a background check make sure the property is the perfect choice for the purpose of your investment.

One of my Client once had this kind of ugly incident concerning a fake document to the intended property, he wanted to purchase at Mowe, Ogun state. Fortunately for him, he had a professional Lawyer who was able to detect in time the fake document being presented by the fraudster that called himself a real estate agent. Avoiding this particular mistake will save you so much headache from fraudulent companies and even individuals.

No Inspection: Another grave mistake many investors make is not going to inspect the property they want to buy, not even once. They blindly pay for a property trusting that the company may keep to their own part of the bargain. Unfortunately, things don’t work that way, ensure you go for an inspection of the property you’re interested in buying before making up your mind on payment. If possible, visit again and again before finalizing your payment with the company. Also, after payment, request the allocation of your property and start fencing immediately if possible.
In conclusion, investing in real estate comes with lots of benefits; from the appreciation, the advantage against inflation to the positive cash flow, and many more. Also, knowing how to tap through its opportunity can cause a drastic change in one’s financial goals with a maximum ROI. Watch out for my next article to know how to you can tap through the various streams available in Real Estate.