LAND AS AN ALTERNATIVE INVESTMENT IN NIGERIA
by Femi Moore
Investing in Lands in Nigeria
Investing in land has proven to be one of the best long term investments that anyone can make. If you are thinking about choosing an investment, but you aren’t too familiar with investing in land, keep reading and I’ll tell you some great basic information.
Why Is Investing In Land A Good Idea?
Think about this for a while. Have you heard of the cities that are growing so rapidly that they are called ‘Boom-burgs’? Have you recently considered the fact that the population of Nigeria grew over 15% from 1990 to 2000 and many other countries are rising much faster? The level at which people migrate from rural areas to the cities like Lagos, Abuja, Kaduna, Portharcourt have increases.
All of the people need somewhere to live. More than that, all of these people need somewhere to work and somewhere to play. Yes people live, work and play inside buildings. But these buildings need to be placed on land.
For many generations, land has been viewed as a hard asset with real, tangible value. You can live on it, build a home on it, farm on it – you name it. A piece of land never “goes away” – it is something tangible, and the ownership of land has always been a goal for people all across the world.
More fortunes have been made by owning land than any other investment – some of the people you might have heard of include Donald Trump, Howard Hughes and some rich people in Nigeria like Aliko Dangote, Femi Otedola, Okoya ,Folawiyo e.t.c. Some of them own properties all over places like Banana Island, Parkview, Lekki Pennisular, Victoria etc.
During these uncertain times, land and other tangible assets have been favoured by investors from across the world, as they provide an excellent hedge against inflation, which can easily be caused by the low interest rates to stimulate borrowing and economic growth.
The good news is, investing in land is no longer something that is reserved for high-net worth individuals, private equity groups, and pension funds.
Individual investors now have excellent opportunities to acquire build-able residential home sites in planned communities across Nigeria, and it has never been easier, more affordable, or a better time to do so.
The biggest benefit to owning land is that as the population continues to grow, land will become more and more valuable. It’s simple supply and demand; the price will always increase. Investing in land itself (with no structures or improvements) has several advantages, especially if you’re thinking long-term.
Why have I told all of this? I am trying to show you that the demand for land is increasing at an insane rate. The problem is that we only have so much land to use.
Let compare land to collectible goods that newly comes to the market. If a company produced only 100,000 of such goods to the market, few years later, if the goods become widely popular, the demand for it would increase. Since there is a finite supply of it in the market (100,000), the price would go through the roof.
This is the basic principle of supply and demand and it is a very important concept if you are thinking about investing in land. As more and more people are added to the world’s population the demand for land is going to keep rising. But since there is a finite supply of land, meaning we cannot make any more, the price of land has nowhere to go but up!
Will Investing In Land Always Make Me Money?
It would be incorrect to say that all land gets more valuable all the time. There are many factors that affect
the value of land. Land can decrease in value if the economy of the surrounding area decreases. But historically, we have seen land prices go up over the long run.
That means that if you start investing in land now, you may not see a great return in the very near future. However, over a number of years you can pretty much expect that your land will become more valuable.
If you are thinking about investing in land, think about the location of that land.
If it is in an area that will be expanding soon, that land will probably become more valuable. But if you are looking at investing in land that is in the middle of nowhere, it might take a while before anyone wants to buy it. That means the value of that land might not rise very quickly.
Investing in land really is one of the best decisions that you can make for yourself and your future. Unlike almost every other investment out there, land has a history of only growing in value over time.
Now that you are interested, you need to start researching about the best ways to go about investing in land.
Contact an agent and talk with them about what you would like to do.
Surely, they will have even more ideas for you. Plus, they can show you all kinds of listings that might spark your interest. I wish you good luck as you enter the exciting world of investing in land.
Why is Land the Best Investment That You Can Make?
There are so many investment opportunities, a common question is ‘why is investing in land any different from everything else that I could invest in?’ Let’s talk about this for a moment; soon you’ll know what the difference is.
Many investments involve goods that are naturally limited to a certain amount. For instance, there is only so much gold in the world. No matter how much people buy gold, no one can really create any more than there already is. That’s one of the reasons why gold is such a great investment. But, the problem is that not everyone cares about gold. Sure, some people love gold jewellery, but only some people ‘can’t live without it’.
When you are talking about land, you will have to agree that everyone ‘can’t live without it’. Out of anything that you can purchase, land is the one thing that you cannot live without. There is only so much land and everyone needs at least a little bit to live on. No one is making any more land, but people are buying it up at increasing rates.
This incredible demand for land makes it a great investment. In fact, investing in land gives you an investment which will, over the long run, only increase in value. You see, while your possessions like cars and homes lose value as they grow older, land will continue to become more and more valuable. It appreciates rather than depreciates. This is because of all of the reasons that we just discussed – we all need land and no one is making any more of it.
The fall in the stock market has brought more awareness of real estate investment to everyone, many companies are diversifying into real estate development, some stock brokers are now real estate developers, companies that fail to diversify has close down offices or suffer down sized of staffs.
So if you are new to investing in land you can be sure that you are in a profitable business. Just be prepared for hard work, it’s not easy investing in the most important commodity that the world can offer.
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