The New Year ushered in drastic changes in the Nigerian economy. One of which happens to be the continuous fall in the price of oil from which most of our foreign exchange earnings is derived. This may ultimately affect various sectors of the economy so as you begin to make investment plans for the year, you should take a critical look at the Real Estate market as an alternative form of investment to purchase of company stock and shares. The real estate market in Nigeria comprises vacant land, Residential and commercial properties. So why Real estate?

According to Lamudi Nigeria, It is a known fact that real estate appreciates in value over time and the returns on such investment depends on the type of property purchased. In a country with a fast growing population like Nigeria you could earn some extraordinary returns from your real estate investment.

According to real estate analysts, Real Estate is also very resilient in all kinds of economic conditions including inflation. During periods of inflation the basic effect on the economy is that the prices of things goes up. It means simply that money buys less. Where most investments lose their value at exactly such period, real estate investment on the other hand has the inherent ability to absorb rising costs. Real estate investment is unique in this aspect since only very few investments can weather the storm of inflation. Research has shown that real estate has the ability to produce income, ability to produce a profit, and ability to appreciate in value at the same time. Generally, a return of at least 10 to 15 per cent annually and sometimes more could be your benefit. Not yet convinced?

Another benefit of investing in real estate is its ability to leverage resources or the equity in the property. Real estate also has the added benefit of tax protection for your investment. Because buildings are subjected to natural wear and tear, you are allowed to factor in depreciation. In addition, your property is a form of money bank from which you can access cash when you need them by selling the property. It could be used as a form of collateral in order to access money.

In summary, real estate is one of the safest forms of investment and will always be in demand.

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