Guide to Buying an Investment Property to Rent In Lagos
Real estate has always been a go to place for those who seek to grow and preserve their wealth portfolio. To provide in time when the hands become old and weak to work like in the days of youth. The beauty of buying a property to rent is that you will join many others on the road to retirement savings, generational wealth fund & meeting your financial goals.
Now that you are here, let’s get down to business.
- When do you plan on retiring?
- How much money do you plan on investing in buying a rental property?
- Do you need an immediate cash flow?
- Will you need to diversify your portfolio to reduce risk?
- How much will you need to cover all expenses?
These questions help you define what you need to meet your target. And what the goal actually is while considering your first property.
- Job Growth – is a strong sign of the potential for real estate investments. For instance, Dangote’s refinery is in Ibeju Lekki, which means it will create jobs for more than 2000 people. Other small to medium businesses will set up shop to capture a part of the market.
- Population Growth – Lagos has always been a place people flock to for job opportunities. To be part of the “national cake”. In simple terms, an increase in population, there is a huge market for land sellers and landlords. This suggests that places like Lagos, Abuja, Port-Harcourt, are good targets for investors.
- How many rental properties are within the area?
- What is the growth rate of the area?
- What is the area’s proximity to the market?
- Is the crime rate low?
- What is the average household income for the neighborhood?
- For a family-sized unit, ensure you have properties to accommodate families and not bachelors. The quality of local educational facilities in the area also needs to look at. If a property is good, but the nearby schools are poor or non-existent, it can affect the value of your investment.
- Another instance is knowing the kind of property to buy for a student populated area. Though you will have irregular vacancies as regards new sessions which in turn affects your income. You don’t want to run a loss by having to repair damages every now and then with your profits.
- Is it that people are leaving the area or
- Is it a new place with the potentials for future growth?
- How do I cover for seasonal fluctuations?
- How much will it cost to rent a [your description of your desired property?
- What is the average rent in the area?
He is a creative digital marketer who has worked with a good number of businesses and has recorded success. While not working he is reading books on behavourial economics.