AFFORDABLE WAYS TO INVEST IN PROPERTIES

In this era of economic instability where ROIs in the money market keeps dropping, one aspect of the economy that has remained stable is real estate. In Nigeria, the real estate business is quite profitable. One of the most attractive features of real estate is the diversity of investment opportunities it presents. There are diverse methods with which minimal funds can be used to acquire high-value properties. Whatever your financial situation, you too can get in on the action.

Today, we will share with you some of the affordable ways to invest in real estates.

INVESTMENT CLUB NETWORK

This is one of the smartest methods of investing. It basically involves the coming together of a group of people, usually a small group for the purpose of investing in a particular property. Each member of the group will be a stakeholder in the asset acquisition. Members agree to rent or sell the property and profits are shared based on return on investments. This type of property investment is a very affordable way to invest in properties.

Note to always check the value, location and condition of the property before investing, to guarantee a good ROI in the best time frame.

REAL ESTATE INVESTMENT TRUSTS (REITS).

REITs are a form of collective investment scheme regulated by the Securities and Exchange Commission (SEC). It pools capital from investors and uses the same in the acquisition of mortgage loans, income-making real estate, or a combination of both. The portfolio of underlying assets is placed under professional management to maximize returns to the investors who are able to hold an indirect interest in real estate on a flow-through basis, placing them in a position as if the property were held as a direct investment. REITs are bought and sold on the major exchanges, just like any other stock. REITs have been found to come with a lot of benefits.

One of these is portfolio diversification, as real estate investment which offers an alternative to equities and fixed income securities, especially for investors interested in diversification. Another benefit derived from REITs is Liquidity, it makes for relatively liquid assets (when compared to direct investment in real estate) that can be sold quickly to get cash.

INVESTMENT USING SPECIAL PURPOSE VEHICLE.

A special purpose vehicle (SPV) is a subsidiary of a company which is protected from the parent company’s financial risk. It is a legal entity created for a limited business acquisition or transaction, or it can be used as a funding structure.

In this type of real estate investment:

• Companies can transfer property ownership to an SPV and sell off that entity, paying (lower) capital gains tax instead of property sales tax.
• Banks can sell mortgage assets to SPVs, lowering the leverage on their own balance sheets.

WHAT’S NEXT?

Now that the rate of treasury bills, fixed deposit in Nigeria has dropped, it is time to take advantage of real estate investment opportunities as ROI is guaranteed.

Would you like to get started?

Send us an email: enquiries@rydalmewsltd.com

Call: 09043817013; 08178348754