Real estate investment is one of the major ways that investors can create a steady income stream in Nigeria. Throughout history, investment in Real estate has produced more wealth to investors than any other sector. However, a lot of people are still doubtful about investing in the business of real estate. They believe investing in real estate requires huge capital.

When it comes to generating income through investment in real estate, there are a few proven strategies that work. With our years of valuable experience in the real estate industry at Oakwood Heights Limited, discussed in this article are proven strategies to generate income by investing in Nigeria’s real estate, especially in fast-developing areas like Lagos and Abuja.

Below are four (4) profitable strategies for generating income through investment in Nigeria’s real estate industry.

1. Rise in Value of property

Real estate is all about value. Landed properties increase in value over time, and you can take advantage of this. This is how the rich multiply their wealth over time because it is of no value leaving your money in the bank. Compare the 5% annual interest rate on your savings account with 40% net value in real estate when you partner with an experienced property development company in Oakwood Heights Limited. For instance, in 2017, a plot of land in Westwood Park in Sangotedo Lagos State was sold for N8.5m. Two years later in 2020 before the pandemic, it was sold for at least N17m. An over 100% increase in value within two years.

2. Long-term Residential Rentals 

People will always need a place to live. Despite efforts by stakeholders in the housing sub-sector, housing provision continues to remain a major challenge in Nigeria. One of the most common ways of generating income in real estate is to take advantage of long-term buy-and-hold residential rentals. It involves buying a property and then holding the property for a long term and collecting rent. Location is everything when it comes to real estate. Oakwood Heights Limited can help you get the right property in the right location for you to invest and make money.

3. Rental apartments

This model is designed to convert major buildings into rentable one and two bed studio apartments. This conversion allows for short-term rentals which can be a lucrative means of generating income in the real estate marketplace. This helps you build a substantial income stream in a high-trafficked tourist area like Lagos and Abuja. 

4. Flipping a renovated property 

Flipping refers to the practice of buying a property and quickly marketing it for a profit, especially after renovations and upgrades are done. From experience, you should go after those properties that are becoming unattractive in the finest neighborhoods. That’s where the real value is. Generating income on a flipped property that is renovated can be pretty straightforward, provided you understand the fundamental costs and potential value. 

Conclusion 

Real estate remains the asset of choice when it comes to investment. We hope some of these tips can help you make extra income from your real estate investment. 

For inquiries, please reach out to us on 07047214004 or send us a mail at info@oakwoodheights.com.ng

There are numerous reasons you might want to invest in real estate. To the “ordinary people,” it may look like an idea or a plan that is impossible to achieve. Many individuals believe that they have to be intelligent investors with lots of money, but with the proper rationale and research, the real estate industry can be accessed by rookies.

Oakwood Height Limited is most suitable for providing a convenient platform for all to understand, access, and invest in real estate. Besides, we have a good track record in helping clients find property of their choice.  Here are some reasons you should turn to Oakwood Height Limited for the best value property;

1. As a tangible asset, Real estate has significant value.

Tangible assets are referred to as physical assets with monetary value. Examples of physical assets are computers, properties, and equipments. In comparison with investment in stocks, a stock initially worth N800 could drop to N0 when the stock market crashes. However, in real estate, your capital invested will always be valuable; if you make the right decision

2. The value of Real Estate appreciates

Real estate gains monetary value over a while. Besides the building itself, the land on which the building is erected will also appreciate. In areas  like Lekki, Ikeja, and other prime areas, the land value will continue to rise, even without building on it.

Ayodele and Bisi, a couple from Lagos, Nigeria, bought a piece of land for N10, 000 in the 1980s, a lakeside lot in a small undeveloped town. They intended to build on it. However, they didn’t. Over time, the town gained population, and the prices of houses went up around their lot. Presently the lot, although without a house built on it, is valued at N18, 000,000. Of course, the lot is now part of their legacy for their children.

3. You have the chance to optimize the value of your property if you want.

One of the essential benefits of real estate is that you can improve your property if you want. You can add amenities such as a swimming pool and others. The kitchen, garage doors, or bath can be upgraded, after which, the property can be rented or sold at a higher price than paid for. Any upgrade done to a real estate property will undoubtedly increase the value, because it is a tangible asset.

4. Real estate is a means to diversify your investment portfolio

Real estate is an alternative means of minimizing your investment risks, particularly if you have much money invested in other investment vehicles. Experts will always recommend you diversify your investment portfolio to avoid complete loss of your investment when the market you have invested in crashes. Real estate is a lot more beneficial and safer means of diversifying your investment than other investments.

Have you heard the term “safe as houses?” There is a reason behind its use.

For inquiries, please reach out to us on 07047214004 or send us a mail at info@oakwoodheights.com.ng

Private sector-driven real estate is the solution to Nigeria’s housing challenges. Oakwood Heights Limited, for several years, has contributed immensely to the development of Nigeria’s real estate industry despite its challenges.

Government policies and partnerships

Nigeria’s real estate industry is developing at a fast rate. This is made possible by policies of the government, private companies and other growing sectors of the Nigerian economy: such as tourism, power, and telecommunications. Through several housing schemes and policies in partnership with private real estate companies, the government has assisted civil servants in owning a home.  Private corporations are also building housing estates to accommodate their employees. This has resulted in the increase of professional developers in Nigeria’s real estate industry. Nevertheless, this promising industry has its challenges and expectations, affecting the realization of its real potentials. The country currently has a 17 million housing deficit and requires no less than 700, 000 houses annually to bridge the gap (Vanguard Newspaper, January 2021).

The approval process

On title perfections real estate developers often experience delays in obtaining approval from Land Registries for land. The administrative process involved in the registration and land allotment is a burden to real estate development. This can make a developer lose its means of funding and even attract higher interest rates on loans obtained for development. The developer’s work plan may also be interrupted, resulting in increased cost of construction and housing prices.

Corruption

Bribery and corruption is also a hindrance in the real estate industry. A recent survey revealed that land registries had remained a cesspit for bribery among other public offices in Nigeria (Guardian Newspaper, September 2020). As a result, professional developers may be denied approval and building permits despite meeting the preconditions necessary for land allotment in favor of those who didn’t meet the preconditions. This has resulted in the non-compliance of construction and environmental laws and the collapse of buildings, and several ecological disasters.

In addition, the depreciation of our currency (the Naira) is a challenge for real estate developers. Over the years, the Naira has been unstable, primarily due to the oil price fluctuations and poor economic policies. This has resulted in a high interest rate, inflation of building materials, and high construction cost, which is a setback for most real estate developers.

Private real estate developers and companies can achieve a lot to minimize the deficit in the country’s housing sector if impactful policies from the Nigerian government complement their efforts. Fortunately, many policies are put in place by the government to support local & foreign investors, the financial sector, and real estate developers.

The steps taken include:

• The government partners with private real estate developers to develop housing projects for the public, PPP (Public-Private Sector Initiative).  For instance, the mandatory 2.89% of pension funds investments in real estate.
• The government has established special agencies to streamline the process of land allocation and registration to minimize and eliminate bribery and corruption,  administrative bottlenecks hindering and slowing down the growth of the industry.
• Increase in foreign direct investment, which has resulted in a partnership between foreign investors, local real estate companies, and landowners.

Despite the challenges affecting the real estate industry, the real estate sector will continuously improve. The industry is becoming competitive, and stakeholders are challenged to do better strategically in planning. Real estate business, either estate development or the marketing of properties, needs patience, honesty, and hard work. Regardless of these challenges, success awaits anyone who abides by the industry’s rules and regulations upon which the real estate industry thrives.

For inquiries, please reach out to us on 07047214004 or send us a mail at info@oakwoodheights.com.ng

The future of real estate in Nigeria is gaining traction. But not in the manner that you imagine. With increasing concerns over Nigeria’s expanding population growth (over 200 million people), we see the emergence of a working population comprising of dynamic, technologically savvy, agile, and increasingly embracing risk by establishing startups from tech companies, financial institutions, and modern restaurants. Young professionals keep away from the regular and expensive office and residential arrangements and adopt the cost-saving features and flexibility that shared accommodation and working spaces provide. Mobile technology has empowered consumers, which has forced the real estate industry to innovate.

However, there remains a major demand-supply gap in the various real estate submarkets: office, residential, hospitality, and retail. While real estate investments provide an opportunity for citizens to participate directly in the economy, the regular means of achieving this are far-fetched for many citizens, and the system needs to evolve. To re-energize the real estate sector, boost the economy and restore access to the real estate industry, Oakwood Heights Limited has strategically rolled out innovative and affordable real estate investment options for the lower-middle working-class population.

Oak Flexi: This investment option allows you to buy your desired property by granting you access to the National Housing Fund (NHF) of N15m at an interest rate of 6% per annum, in addition to a mortgage loan. This loan has a maximum tenor of 30 years. Oakwood Heights compliment the NHF loan with a link to a mortgage, to make up the property’s value to be purchased.

Oak Staff Mortgage Scheme: This is a special investment scheme designed to provide and administer housing schemes and mortgage finance for employees and co-operative societies, corporate unions, associations, etc. It is tailored to fit into specific organizations based on their salary and pay structure.

Oakhome Ownership Build Up: Oakhome ownership build-up is an investment option that allows you to provide half equity of the desired property by building up your savings to 50% of the property’s value. We provide a balance of 50%. You will be allowed to occupy the house while providing the remaining equity through mortgage or rent-to-own-bases on installment payments.

Joint Ventures: This service enables owners of undeveloped land property in prime locations to partner with us to develop their real estate and earn income. Our Joint venture (JV) service provides a platform where we partner with other landowners to develop houses for sale. This can involve sharing of profits or otherwise. Our objective is bringing satisfaction, value, and maximum returns, with the hope of making homeownership affordable and simple.

Property Development: Under this service, we assist investors in refurbishing old, foreclosed, or abandoned properties in prime locations into luxury and deluxe apartments / commercial buildings. The properties can be put up for sale at a significantly profitable margin.

The story of Nigeria’s real estate industry is bright, and Oakwood heights Limited is in a strong position to deliver properties and services which are financially, physically, and fit for Nigeria’s future.

For inquiries, please reach out to us on 07047214004 or send us a mail at info@oakwoodheights.com.ng

Buying Lands and properties in choice areas Nigeria is like purchasing Gold! It is advisable to avoid fraud and falsification of contract documents before purchasing a designated real estate property. Consequently, this article will underline several methods of acquiring real estate and measures to be adopted when buying a property in Nigeria.

There are several methods of acquiring real estate in Nigeria.  Properties can be acquired through property transfers, donation of land, probate or letters of administration, direct purchase and others.  This article will emphasize the sale of real estate property, which is common practice in Nigeria.

The acquisition of real estate by sale is when the rights in a unit of property (or designated real estate) are transferred between seller and buyer. At least two parties are involved in a real estate transaction. The parties can be natural or legal entities (e.g., a company). A real estate transaction can be rather complicated; hence, an experienced real estate company (like Oakwood Heights Limited) and a lawyer are required.

Five (5) phases involved in acquiring real estate by sale are mentioned herein for ease of understanding. A buyer is expected to follow through with each stage when buying a property.

1. Inspection phase: This is where the buyer examines the property by physically observing the property he wants to buy. This must be done to ascertain the description of the property presented by the seller (which can be the landowner or real estate agent). The physical observation also helps the buyer know if the property’s location is in line with the state’s urban and regional planning laws (business or residential).
2. Pre contract phase: In this phase, the buyer proceeds to search for the property’s title to establish the genuineness of the title property and ensure there is no concern on the property. The search can be done in:
   • The appropriate Land Registry
   • The probate registry-to ascertain if the title of the property was gotten through a will.
   • The Corporate Affairs Commission-to know if the seller is a company and thus registered.
   • The court-to inquire if there is a disagreement on the property title.
3.   Contract phase: This is the phase where the potential buyer has done all the due diligence, sure of the property he wants to buy and ready to proceed with the purchase. At this phase, the parties involved negotiate the terms of sale; a contract of sale of real estate (evidencing the transaction between the parties) is prepared, signed, and exchanged; and the initial deposit on the property is made.

• Completion Phase: This is the phase where the parties complete the sale and acquisition of the title property. The buyer is expected to complete the payment for the property, and the seller present to the buyer all original copies of the property’s title documents, including a Deed of Assignment, purchase receipt, the contract of sales, building plan, and other relevant documents in possession of the previous owner. At this point, the title property is now owned by the buyer.
• Post-completion phase: In this phase, the buyer proceeds to perfect the title of the property. This is done at the land registry of the state where the property is located.

For inquiries, please reach out to us on 07047214004 or send us a mail at info@oakwoodheights.com.ng

Oakwood Heights Limited has a lot of valuable experience in real estate investment and has developed several strategies (which goes beyond buying a home) on how to invest in the Nigerian real estate industry. It is a property development company established to construct and create affordable housing units for Nigerian consumers, focusing on lower-middle-income professionals.

Below are four (4) ways to invest in Nigeria’s real estate market through us.

Investing in rental properties

Investing in rental properties makes you a landlord. It is about purchasing a property (or several properties) and renting it out to tenants who covers the mortgage yearly or monthly. It provides a monthly (for short-term rentals, e.g. vacationers) or yearly (long-term rental) rental income that covers the value and profit on the property’s investment; and can be doubled or tripled with the acquisition of more real estates. You can take advantage of our real estates’ products like Diaspora Delight and OakHome ownership build-up to purchase a property and rent it out for monthly and yearly income. You can also subscribe to our facility management services at Oakwood Heights Limited which includes managing properties on behalf of clients, collection of rent, invoicing etc.

Property Redevelopment

This involves refurbishing old abandoned or foreclosed properties in prime locations into luxury and deluxe apartments/commercial buildings. The properties can be put up for sale at a significantly profitable margin. The choice of location is critical when investing in developing a property. Oakwood Heights Limited has dedicated and professional personnel to build, develop and redesign projects to meet the expectation of our numerous clients need. Oakwood Heights Limited is willing to partner with property owners for redevelopment for better value.

Land Flipping

In principle, land flipping is when a buyer purchased a land from the seller at a low price and then proceed to sell that same land for a profit. It is a smart investment that can make you grow from purchasing a plot of land to several plots of land over a period of time. Profound knowledge of how to own land and the processes involved in purchasing and selling land is necessary.

Real Estate Investment Trusts (REITs)

REITs are a passive form of an investment scheme, where you don’t have to worry about putting a property for sale to make a profit or manage tenants for your rented property. It is not common with most Nigerians. REITs are regulated by Nigeria’s Securities and Exchange Commission (SEC).

In REITs, capital is pooled from investors and utilized to acquire real estates and mortgage loans that generate income. Like dividend-paying stocks, REITs can be traded in the stock market for regular dividends. Real estate management professionals manage this pool of assets for maximum returns on investment (ROI). REITs have several benefits, which include:

• It offers an alternative to equities and fixed income securities for investors who want to diversify their investment portfolio.
• It allows investment in relatively liquid assets (compared to direct investment in real estate), like non-residential investments (malls and office buildings), highly liquid and easily converted to cash.

For inquiries, please reach out to us on 07047214004 or send us a mail at info@oakwoodheights.com.ng