Many people do not know that they can invest in properties just the same way they invest in viable stocks towards retirement. You can create a retirement plan around property investment under professional guidance. Over the years I have made viable property investments, which value have doubled, tripled or even quadrupled within two to five years. I have been able to guide others into creating their property portfolio from the scratch.
Let’s look at Mr Olu, he was a salary earner. Sometime in 2002, he approached our company to guide him into making a property investment. We purchased for him two plots of land close to Chevron headquarters in Lagos. This was then, not a prime place, but our analysis was that the area would soon become a hub, for a couple of reasons like enhanced security due to the presence of the oil company in the neighbourhood, similarly many staff of the oil company, contractors etc. may want to buy or lease properties close to the oil company, this would increase demand and subsequently the price. This worked out exactly as projected. What he bought for a couple of hundreds of thousands became his mainstay later in life at retirement. From the proceeds of sale, he bought himself a developed property, returned a portion to us for further investment in another viable location at retirement.
What Are the Factors You Should Look for When Making a Property Investment?
- The Title: Make sure the title is good, undisputed and that you own the reversion as well but not just a leasehold. There is usually buyer apathy for properties with the reversion held by a third party.
- Intrinsic Factors: If it is an estate development project, look at the input of the developers or what I call the ‘intrinsic factors’. Those are factors within the control of the developers. What is their development concept? Are they keeping to the concept? How well are they exploiting their opportunities?
- External Factors: Look at the external factors, projects and developments in the neighbourhood that can enhance the value of the project you are interested in. Those that own properties in Oniru enjoyed between 500 to 1000% of appreciation with the citing of Four Points by Sheraton and the Palms mall. I call this extraneous factors that affect investments.
If you are interested in partnering with with Tycoon Acres as your property advisor please contact us.