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How To Be Financially Secured By Acquiring Off-plan Property In Lagos Nigeria

off-plan property in Lagos

In the rapid rise of houses in the Nigerian real estate market, acquiring off-plan property in a place like Lagos gives real estate investors and homebuyers to buy below market value and then wait for the construction of their property to be completed.

What is an off-plan property?

Off-plan property is a property that is still in the construction or planning phase. Also, it is a property available for purchase before it’s been completed.

Let us take a critical look at this scenario;

As a first-time homebuyer with a good budget to secure a 3 bedroom terrace along the Lekki- Ajah axis. After contacting several real estate agents, you got a fully finished house for N35M naira. Keeping the timeline to move in constant, you can save N8 million naira acquiring an off-plan 3 bedroom terrace within the same location. Unlike a fully finished house which people have already lived in.

Risks for investing in Off-plan property

It is important to know that, everything about life has its own risk. Despite the fact that owning off-plan properties give you the opportunity to own multiple investments in a short time. Whether to use as a home or investment. Off-plan property has the following risks.

  1. Reputability of the developer: It is normal for investors or firstime home buyers to have this uncertainty. Fear of what the property will look like on completion. A way to tackle this is to carry out due diligence on the later projects the development company has achieved. Also, a 3D material; video, or pictures of how the building will look like upon completion can help tackle this uncertainty.
  2. Timeline for completion: It is vital to make some research on the track record of the developer. This will help in determining whether they can deliver within the time frame given. Usually, funding may be a major cause that affects the timeline for delivery.

Having undressed into minute details the risks for investing in off-plan property in Lagos, Nigeria. Let us delve into the benefits of it.

Also Check: Affordable off-plan properties in Lagos

Benefits of Investing in Off-plan Property In Lagos Nigeria

The benefit of owning an off-plan property in a place like Lagos cannot be over-emphasized because properties in a state like Lagos appreciate more than any state.

  1. Buy below market value: instead of acquiring a fully finished 4 bedroom detached duplex in lekki for 120M. You can acquire 2 off-plan properties, a detached duplex in the same location for 90M in the same and the remaining balance can be used to acquire another off-plan property in another location.
  2. Opportunity to know more about the material used for construction: Acquiring an off-plan property in Lagos gives you the opportunity to know more about the materials used in constructing the building. The building protocols, the quality of blocks, electrical installations e.t.c
  3. Opportunity to contribute your own input: Acquiring an off plan property gives you the opportunity to contribute your own input to the type of interior decoration, kitchen finishing, bathroom finishing e.t.c
  4. Opportunity for flexible payment: It gives you the opportunity to spread your payment within a period of 6 months, a year, or two,  depending on the time frame for completion. You are not been pressured to make payments, unlike the fully finished houses.  

How To Make Money From Off-plan Property

I am pretty sure you are not aware that you can make more money acquiring off-plan property.  The following are secrets on how to become a multi-millionaire by acquiring off-plan properties.

  1. Buy and Hold: Let say you make a 10% discount on an off-plan property. This can be treated as money you can use to invest in something else. Perhaps a land banking project landed property. In a rising place like Lagos where prices of real estate go up in a short period of time.
  2. Flipping before completion:  Buying off-plan property means making a certain deposit usually 5%, 10%, or 20% depending on the development company. The rest is payable in installments or when it’s completed. Let us take a look at this scenario; you are offered to deposit 3.5M naira for a house N25M upon completion. As demand increases, 4 months down the line, property prices in the neighborhood rise by 5% meaning the house that is still under construction will be worth 26 million Naira upon completion. Isn’t that amazing.

Conclusion: Acquiring Offplan property in places like Lagos, Ogun,  and Abuja guarantees you high returns on investment. At Tranquility Realtors, we are committed to your real estate investment growth. We have partnered with the right developers in Lagos, Ogun, and Abuja to give you the best real estate investment deal in Nigeria.

Join The Discussion

0 thoughts on “How To Be Financially Secured By Acquiring Off-plan Property In Lagos Nigeria”

  • Adeola

    What a great write up

    Reply

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