Seven powerful reasons why you should invest in off-plan properties—— September 17, 2021
The Act of Investing involves the setting aside of part of one’s financial resources with the intention of acquiring assets that would generate future income or profit. There are several Investment classes one can consider for Investment such as Stocks, Money market Instruments as well as Real Estate. Whilst the possible outlets for Investment can vary as indicated above, the objectives are generally the same and include;
- Future Income generation.
- Wealth Creation.
- Value preservation.
- Mitigation of Future financial risks.
The question however arises; Why Invest in Real estate property? What makes Investing in this asset class apparently more advantageous than others? Where are the real estate investment opportunities in Lagos? In answering these questions, we note that Investment in real estate, and that includes Lagos, has the following advantages;
- Real Estate is tangible and durable.
- It is relatively simple to understand compared to other Investment classes.
- Real Estate serves as a good hedge for inflation.
- Real Estate generally allows for value appreciation over time.
Investment in Real Estate can also be either by outright purchase of a fully completed dwelling unit or by purchasing a property off-plan (that is prior to or during construction). Whilst each mode of property acquisition has its relative advantages and disadvantages, we would like to highlight in this article the various advantages of off plan property Investment as follows.
Why one should invest in off plan properties
- Investing in off-plan properties has the immediate advantage of value appreciation or capital growth merely by making the purchase. In this wise, one should note that in most cases off plan property developments in Lagos and other areas in Nigeria are usually sold at a discount relative to fully built ones, thus one is already making a gain in that wise.
- Furthermore, many off-plan developments tend to be situated in neighbourhoods that are just developing and such developments tend to enhance the overall value of the neighbourhood especially if they are large. This type of scenario leads to appreciation in the value of properties in that neighbourhood with the result that by the time the development is being completed the value of the properties within same tend to be significantly higher than the value at which they were bought off plan thus resulting into capital appreciation. This is especially the case with many property developments in the Lekki area of Lagos which in itself is still in development
- A further advantage of purchasing off-plan properties is that notwithstanding the likely appreciation in property values over the construction period, prices tend to be locked in at the level at which the buyer enters into the transaction. A prospective property buyer should however go through the initial paperwork carefully to confirm this is indeed the case and avoid signing on to schemes that allow for significant variations in prices as construction progresses.
- Buying a property off plan in Lagos also enables one to make payment instalments as the construction progresses thus giving the advantage of being able to moderate one’s cash flow and avoid the possibility of having to liquidate other assets in order to make a bulk payment for the property.
- Another advantage of off plan purchases is the possibility it creates for one to make modifications to the building design at the early stages of construction and to also have finishes or building components specified to one’s taste and preferences.
- A further advantage conferred by off plan property purchase is the opportunity to pick one’s preferred location within a particular development especially if one is able to key into the development at an early stage. This is as opposed to the case of an already built up property that has its location already fixed.
- Finally, a notable advantage one gets from buying properties off plan is the fact that developers of such schemes usually offer extended warranty periods during which any construction defects are rectified at no cost to the buyer. This is in contrast to purchase of fully built up properties which tend to have only limited warranty periods where newly built and have no warranty period at all if the building is one that has been lived in for some time. At Beachway Homes, all our new developments enjoy a full one year warranty period as we strive to ensure our customers are fully satisfied with any property bought from our company.
The foregoing provides important reasons why you should seriously consider investing in off-plan properties and we do hope the information herein is enough to convince you its well worth a try! Contact us for more details about off plan property investment in the Lagos area, we will be delighted to answer all your questions.