So many Nigerians believe that buying or building a house is one of the best investments to make with their retirement savings. It’s a beautiful idea but if not well planned, it may be the worse decision they have ever taken. This is because these funds are not continuous and investing it wisely is a great gain, vice versa. And besides, there are other tangible investments that you can do with your retirement savings. We will look at ways to enjoy your pension funds on a long term goal rather than suffer loss at the end of any investment. But trust me, real estate is a good investment but you must know how. Below are the top five real estate investment tips that can help you maximize your retirement savings in Nigeria;
CHECK: LAND FOR SALE IN LAGOS
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Owning a Property Before Retirement is not a Bad Idea
Owning a house in your 30’s or 40’s is a fabulous idea, so plan ahead. It’s not an easy thing to do because most working class people have a lot of responsibilities, from family to in-laws, to rent to transportation and so many other things. You can try your hands on a few other businesses before retirement. You can use the proceeds from such to get a property.
CHECK: PROPERTY FOR SALE IN LAGOS
The benefit of owning a property before retirement is that, by the time you get your retirement funds, you are free from paying rent, so you have all your money to yourself. Now, investing in real estate will be a channel of gain for you. You can decide to buy or build a house. The property you acquire should be one that brings you gain. So go for a property in a good location. Buy or build a house that can accommodate tenants. Thus, the rent from your house will be used for your upkeep.
It’s not too Late if You Don’t Own a Property
One thing that I have realised is that you can own a property at any age. So if you feel dejected that you do not own a property before retirement, it’s not too late. However, you need to start planning to own one before you finally get your pension. Get a property that your pension can afford you. This is because, since you are investing your pension, if you start building something too big, you may not be able to complete it. You may also have to take out your rent from your pension, so you have a lesser amount of money. If you cannot afford to build a four flat that can accommodate three tenants plus your family, then, you can build or buy a house with three self-contain apartments. Make sure that the property is in a very good location.
CHECK: PROPERTY FOR RENT IN LAGOS
This will also help you to generate funds for upkeep. But this may not be really much, so even if you can afford to build a four flat, you can decide to build something smaller and invest the remaining funds in a small business that generates day-to-day income.
Have You Thought of Shopping Complexes
This may be a fabulous idea if you already own a property before retirement. Owning a shopping complex is one of the most lucrative and untapped real estate opportunities. However, to do this, you may have to spend a lot of money on location. Building a shopping complex may gulp up your pension. You may even have to add your other savings to make it happen. But trust me, at the end, you will be glad that you did. It is one of the best real estate properties to own.
If you want this, then start having a picture of the structure and the location of your shopping complex in your head. One beautiful thing about owning a shopping complex is that you can sell out units of your shops to other people, get bulk money and still own other shops. It is a branch of commercial real estate.
Investing in Plots of Land is Fabulous
In Nigeria today, buying a piece of land is one of the most profitable enterprises. So if you have properties before, you don’t just want to invest in building houses. Then, you can buy acres of land and just sell later. This takes a process anyways. You need to verify the land that you want to buy. It must have all the documents required. You must also try to secure your land by fencing round with a gate or building a small structure on it.
CHECK: PROPERTY FOR SALE IN NIGERIA
This is one of the easiest ways to make money. Real estate is like a money bank where you keep your money and you are sure to generate over 200% profit in a short time. Lands right now in the new EPZ (Export Processing Zone) is a profitable investment, Dangote is going to move about well over 20,000 to 50,000 people towards that zone.
Those people have to live somewhere. Right now the plot of land with documentation will cost about two million Naira.
You Can Commercialize Residential Properties
This is a beautiful idea that can help you stay healthy and make money. The fact that you have retired does not mean that you should sit at home or stay in a shop all day. You can create an enterprise and make so much money and be so fit. Have you considered owning a school, a creche, and event management company, an event centre, a photography studio, or a fashion house? It is very easy. If you have more than one properties before retirement, you can commercialise one of them. If you have a passion for teaching a school will be a very good idea. You don’t even have to own two properties before commercializing one, you just need to have a plan. So if you own a residential apartment, you can decide to invest in building another one and commercialize the former.
And if you don’t have any before, you can invest in a property that has both residential and commercial advantage. How? Simple, you can invest in a block of four flats and use to flats for a school and a fashion house or whatsoever suits your passion.This way you get active, meet people and do business.
I am sure you will consider any of the options above, to buy, sell or let out your property for retirement, visit www.tolet.com.ng today.
