How to Invest In Lands around Lekki Free Trade Zone and Cash Out Big
Simply have plans to buy a land around the free trade zone hoping its value appreciates in the future. I do not have any plans to erect a house on the land, I intend to buy and hold on to it for a few years and then sell it.
If that describes you, then this article is specifically written for you with answers to all possible questions as regards to this kind of investment.
Why Invest in Ibeju Lekki
If you landed on this page from a search engine then you probably already have an idea of why you should invest in Ibeju Lekki lands right now.
In case you do not know what’s going on in Ibeju Lekki or if you know but still doubting if the proposed projects will ever come into reality or you think the projects will take many years to become a reality, allow me to briefly enlighten you a bit so you don’t become one of those who missed an opportunity to invest in Lekki but did not because all you could see was bushes and felt it would remain like that for a very long time. Many people are already regretting because a plot of land in Lekki today is up to N150million We know this because they tell us of a golden opportunity they missed when we take them for land inspections. Some are already creating that opportunity for themselves right now by investing on the lands they can get in Ibeju Lekki at the moment and you should also do the same.
At the moment, the hottest investment destination in Africa is Ibeju Lekki Lagos, which houses multi billion Dollars international projects that includes:
Dubai Smart city
Lekki Epe international airport
Lekki free trade zone
Olympic size stadium
International golf centers
Lekki deep sea port
Beach resort centers
Dangote private Jetty
To answer your doubts, No, some of these project would not take up to five years to complete. The latest update on the refinery was that full operations were going to start in the first quarter of 2019. That’s less than a year from now. Construction work goes on every day in Ibeju Lekki. We almost always notice a new thing each time we take that route or take clients to the area for inspection.
Assuming it even takes 5 years for some of these projects to really take off. By that time, everyone would be rushing to buy a land there. But you wouldn’t be amongst them, you would have already bought a land when it was fairly cheap and then resell and make up to a 100% return on that investment. Which other investment opportunity anywhere in Nigeria offers such ROI in 5 years? I’m waiting for you to mention one.
A stitch in time saves nine.
Lands around Lekki Free Trade Zone Ibeju Lekki
There are lots of estates with several hectares of land around the Lekki free trade zone area, some are before the LFTZ, others are before it, while some are in the LFTZ area. The LFTZ area is mostly industrial. The Lekki sea port, Dangote refinery, Power oil and some other companies are just after the LFTZ with many other companies springing up in the area.
Empty lands are still within the area and hopefully when the refinery commences operation, there would be many other companies in the area, including banks. The residential area in Lekki free trade zone to the trade zone is about 10-30 minutes drive, and a number of estates are located there. The prices of these estates range from N600K-6million a plot.
Buying a Land to Hold and Sell Later
Buying a land for resell purposes or Land Banking as often called by some colleagues is not just one of the best investments in Nigeria with great ROI but it also requires little or no amount of work and maintenance to turn to profit. It’s as easy as it seems. Buy. Take a hike. Come back some years later and sell for 4-8 times the initial amount you bought it for. It’s pretty easy. However, not every investor makes such profit from land banking. Why? Because they didn’t invest in an area with peculiar economic development projects like those in Ibeju Lekki. For instance, you may buy a land in Ikorodu, sell it 5-10 years later and would be lucky to even make up to 200% return on your investment on the land.
The Secret to Cashing out Big in Real Estate
Get a good location and give yourself more room for price appreciation even when buying on a low budget.
There was a client who intended investing in Ibeju Lekki. He however contacted us about Lakeshore gardens that was offering a promo price of N6million. These are the only reasons you should buy an estate that costs N5million and above for a plot
The location appeals to you and you’re buying the land to erect a house and live in
You’re looking at a short term investment. So you want an already developed area where you can build and get returns through rentals on time.
You want a land with a C of O
The location of the land makes it strategically positioned for quick price appreciation. An example is Westwood Park estate. The estate has gotten a 75% jump in price between February 2017 and January 2018. It went from an initial price of N8.4million a plot to a sky rocketing N14million. Amen estate phase 2 is another estate that has prospects for a quick price appreciation because of the developers working on it as we’ve seen what they did with Phase 1
If any of the above stated reasons do not concern you and you want to just buy and hold on to it and resell later then there are other options you could choose from to help you make much more profit from your investment. You potentially earn more from paying less.
Option 1: You could buy a land with awaiting excision as they sell really low.
These lands go for as low as N600k depending on the location. A land awaiting excision has no title. And what if the excision doesn’t get approved? The real estate company may move you to another estate to compensate you. However, there is still risk involved as there is no guarantee that you would like the estate you are moved to. Even if you like the estate, you may be asked to pay a little more to make up for the differences in the price of the estates, which is an expense you may not have budgeted for.
With that said, the appreciation of a land awaiting excision is certain whether the area is developed or not. If and when the excision for the land is eventually approved, a land you bought at N600k can sky rocket to N2million. That’s a 300% increase as ROI. So, imagine that in place of paying N6-N8million for a plot of land with C of O, you purchase 10 or 12 lands awaiting excision. And when the land is fully excised, your ROI would be? You do the math. It would be massive!
Option 2: Completely eliminate risks by buying lands with fully approved excision.
N2million is the lowest price for a plot with approved excision. Yes you will pay three times higher than option 1 but with no risk involved. So it’s worth the purchase. You get 3 or 5 plots of land with N6-N10million in place of one as is the case with a land with C of O. And we all know more is better. West wood estate earlier stated is still a great example of this. In less than a year a client, who bought a land from the estate has made over N5million on her investment while estates awaiting excision since March 2017 were still awaiting approval up to January 2018 with their prices the same.
You have to consider this, think about it properly and make a decision with help of the information provided in this article. Will you buy very high or really low? You alone know what’s best for you. Whatever decision you make, we would be glad to help you go through the process, simply contact us.