FG unveils housing initiative for diaspora Nigerians

The Federal Mortgage Bank of Nigeria says it is working in tandem with Nigerians in the diaspora commission through a recently unveiled housing initiative to assist Nigerians living abroad who want to buy or build houses back home. A statement from the Executive Director, FMBN, Lukman Mustapha, stated that this was disclosed by the bank at the National Diaspora Day 2022 celebration in Abuja themed, “Diaspora Engagement in a Globally Challenging Time.”

Mustapha explained that the scheme became necessary due several stories of diaspora Nigerians being defrauded by estate agents and relatives in the process of acquiring property in Nigeria. He said, “Nigerians in diaspora want to own, build or acquire their own houses. But we have heard or seen cases of these Nigerians being swindled or duped in the process of trying to own a house in Nigeria. This is why FMBN and NIDCOM came up with a scheme that will enable them to take loans and buy their houses.”

The celebration, according to Ibrahim Gambari, President Muhammadu Buhari’s Chief of Staff, who represented the President at the event, was part of the diaspora policy of 2021. NIDCOM celebrated this year’s event in partnership with Palton Morgan Holdings, a real estate firm that focuses on upscaled development to meet the taste of diaspora Nigerians.

The company’s Group Chief Operating Officer, Nidal Turjman, said the firm and its subsidiaries had positioned themselves in the real estate sector as a notable player in the industry for over 12 years, with operations spanning across Lagos, Ogun and Abuja. He said, “Over the years, we have created and deployed economic strategies that have improved the industry and made the industry more attractive for Nigerians both at home and abroad to invest in their own country.

“With a track record of over 7,000 housing units and serviced plots delivered and, about 2,000 units still under development, we have positioned ourselves as a leader of the industry. “It is our vision as an organisation to be a preferred real estate development brand in Africa and beyond. I must tell you that we are almost accomplishing this vision of the founders of our great organisation.”

He assured the diaspora Nigerians that despite the present economic situation, the real estate sector remained a lucrative investment hive due to the 20 million units of housing deficit in the country. In her opening remarks, the Chairman, NIDCOM, Abike Dabiri-Erewa, commended Nigerians in diaspora for their interest in the growth of the Nigerian economy.

She noted that in the last two years, the world witnessed the Covid-19 pandemic, Russia-Ukraine war and an economic melt-down, yet diaspora Nigerians had helped the economy through their remittances. “There is insecurity all over the world. But, be that as it may, Nigerians in diaspora have continued to give back to Nigeria. Despite all the challenges, they remitted $20bn last year,” she said.

She added, “An unconfirmed report says that about 10 per cent of these remittances went into real estate and this explains why many of the estate developers, especially those playing in the luxury segment of the market like Palton Morgan, have their products targeted at Nigerians in diaspora.”

Source: Punch – https://punchng.com/fg-unveils-housing-initiative-for-diaspora-nigerians/

10 ways of investing in the Abuja Real Estate Market

There are various ways you can invest in real estate in Abuja. I will only mention the ways that would not generate controversies. There are some of those methods of real estate investment that would ordinarily raise eyebrows for some people and which would make other individuals shout with excitement. This is because we have different value systems. So, I will avoid the grey areas of real estate investment and talk about the more generally acceptable forms.

Purchase and sell an undervalued property

The property market is very interesting. I see it as a game and nothing more. The property market is filled with individuals who want to dispose off their properties in a jiffy. Some of them want to dispose because of various reasons and at lower prices because of the emergency involved. In other instances, people want to sell land, or landed properties, at a lower price because they bought it at a much lower price etc. For example, a client needed a Jahi plot recently and he was willing to offer 16million naira but could not get the required land size. This same parcel of land could have been purchased for 9 million in 2009. You know the popular saying “buy low, sell high”? It is always true. Look for a property that is undervalued, purchase it and sell at the current market price and you would have made your profit and solved the problems of the seller for which he required money.

Purchase a property renovate it and put it up for sale

This is very simple. I know individuals who practice this real estate investment principle for a living. I mean they don’t do anything else! The man looks for a property that is in a good location but dilapidated. He purchases it, repairs, renovates it and puts it up for sale. In certain instances he may decide to remodel the property before putting it back in the market for sale. He makes good profit from doing this. This is capital intensive, but it is good real estate business.

“Piece meal” sale of real estate

This can be done when a block of flats is bought and resold in units. Considering the fact that the cost of purchasing a block of flats is beyond the reach of many individuals, an investor could purchase the property and sell in units to individuals while making some good profits. So also, an individual may buy hectares of land in a good location, “fix” the lay out, and resell. (In whatever you do please check the legislation in force)

Cooperate investment in real estate

Having considered the first three options, it is important to talk about cooperative investment. This is a situation in which a couple of investors come together to invest in real estate. A group of individual or organizations could purchase a property and then decide to sell it to make profit from it. The idea is that funds could be pooled together for investment in real estate. The profits would be shared in accordance to the contribution or as agreed by the members prior to the investment.

The lease Option

With this option you may not be able to purchase a property because of the capital sum required. However, you can arrange a lease option with the owner of the property for a couple of years and then sub lease the property. Of course this is not yet very common in Nigeria. Please be informed that the sub-lease period should terminate before the lease expires. In this form of investment, the idea is that an individual could lease a property for as long as 5 to 10 years and then pays a lump sum for which the lessee then sub lets the property and makes his profit at the prevailing current rent obtainable from such property.

Buying and Holding Real Estate

This option is also a very common real estate investment practice where an individual builds or buys a property and then gives it out for rent. This is really a good investment but at the same time you would have to deal with repairs, liabilities, taxes, tenants etc. A simple way out is to give your property to a registered Estate Surveyor who can effectively manage your property and obtain current rent and keep the property in a good state of repairs. This has proved to be a good source of investment.

Religious Real Estate Investment

You can go to your pastor or the imam see if they could help their members’ pool funds together to invest in real estate to better the lives of their members. For example, if a particular religious organization purchased a plot of land in kagini Abuja early last year…and sold it this year, it would be making a difference of about N3 million naira profit or more per plot (depending on the size)! Imagine how many beggars, widows; etc the profit would take care of! Imagine what difference the extra profit would make in the lives of the investors, particularly in these economic times? Form a cooperative society in church or mosque, pool the resources together and invest in real estate for the benefit of the members and humanity as a whole!

Farm lands and undeveloped areas

A dear old woman gave me an idea about 12 years ago; at that time she was 88-years-old. She advised me to buy farm lands at a young age. She said “in the course of time development will spread and more often than not the land use could be changed to residential purposes, then you would make profit form foresight” Believe me that is exactly what she did and even at her age she was still a multi millionaire. You could purchase farmlands and give it out for rent. What is bad in farming in it anyway? So also you could purchase undeveloped areas and keep for the same purpose.

Invest in commercial properties

For example you can buy a shop. Have you ever played the monopoly game? I once heard a multi millionaire in America when he was being interviewed saying, that the game of monopoly taught him basically all he knew about real estate and investment. Try to buy the game and see if you can make something out of it. I feel it is an “MBA” on its own. If you purchase a commercial property, you can do all that has been mentioned so far but one notable advantage is that it has little or no repairs to be carried out on it. If the shop is in a good location, you will get a great value for it if you have to flip it (sell it).

If you have the finances, go into real estate development

You don’t have to have 2 billion naira to do this. If all you can build is just a duplex or a bungalow in a good location, you can sell it and make your profit and repeat the same. After a while you would probably be able to build two properties at once, then five, then ten etc I know an individual who built a house and someone offered him about thrice the amount for it… that was how he got into real estate development and today has a massive estate in Abuja, I am sure you would know it if I mention the estate. If you don’t have all the finances, call a couple of investors and professionals and start nurturing the idea. Think big but start small… Think future but start now…no matter how small.

Author: Lawrence Ladokun
Premium Times – https://www.premiumtimesng.com/business/107885-10-ways-of-investing-in-the-abuja-real-estate-market.html

Benefits of Investing in Abuja Real Estate

There are many advantages related to investing in real estate in Abuja. In this day and age it’s easier than ever for anyone to invest in real estate. Having said this, it is important that you invest correctly and through the appropriate channels. A fundamental aspect of real estate is location. The common saying “location, location, location” is probably familiar to many and this cannot be stressed enough. A house or shop can change but location is permanent. When it comes to property location, there is no better place in Nigeria than Abuja.

Abuja, as the capital city of Nigeria, continues to be seen as one of the best places to invest. Nowhere is this more obvious than in the real estate sector. In this post, we will go through a few reasons why it would be wise to invest in Abuja real estate. Reasons to invest in Abuja property:

Abuja is one of the fastest growing cities in the world

Growth means increasing population. Increasing population means further demand for housing as well as goods and services. Further demand means rising real estate value. Rising real estate prices is great news for property investors.

Abuja is still unfinished

Less than 50% of Abuja’s districts have been developed. Hence the majority of the city is still green virgin land. Development focus has shifted to the outskirts i.e. Abuja phase 3 outwards. Abuja today cannot be compared to the Abuja of 10 years ago.

Plenty of undeveloped land

Given the abundance of undeveloped land. You can invest in almost any kind of real estate you like. Be it residential or commercial. Shops or flats. Schools or shopping centers. The opportunity for investment is almost unlimited.

Rising property prices

Real estate prices are almost guaranteed to rise in Abuja as it is the capital of Nigeria. As a result, it is where government activities are focused like Washington DC in the USA or London in England.

Property finance is available

There has been an Increased focus on The government has promised to recapitalize various lending institutions and simplify application processes. This will give more people access to the finance needed to become homeowners and thus reduce the nation’s housing deficit ,but now you can get an answer in months.

Real estate protects against inflation

As the money in circulation increases the value of properties tend to rise, as real estate is often where surplus money is invested. Having some money inside real estate will protect you from inflation and any future currency volatility.

Property investment incentives

Investing in Abuja and by extension Nigeria is now safer than ever. Fresh government initiatives have created an enabling environment for investment. Also being the federal capital, Abuja is the safest place to live in Nigeria. Here you can find people from across the globe.

Source: Naija Houses – https://www.naijahouses.com/blog-details/benefits-of-investing-in-abuja-real-estate

Millions in Nigeria Struggle for Housing Amid Real Estate Boom

Nigeria’s real estate market has been expanding rapidly, but so has the number of people in need of housing in Africa’s most populous country. Nigeria’s Central Bank says the country has a growing deficit of at least 22 million homes.

Fashion designer Precious Nwajiaku moved to Abuja in late January in search of better opportunities. Without much money, she settled for a one-room apartment in a sandy village on the outskirts of Abuja. She said she paid $300 for one year’s rent. For that budget, Nwajiaku said, the house does not even have basic comforts such as water and electricity. “You pay for water, there’s no water inside,” she said. “As you can see there’s no light, there’s nothing, there’s no good road.”

Nigeria’s real estate market grew by 3.85% in the second quarter of last year, its highest rate in six years. Experts say cities such as Lagos and Abuja have the kind of buildings and architecture that are in high demand. As demand for higher-priced real estate increases, though, access to affordable housing is more difficult for millions of citizens.

Nigeria’s housing disparity reflects the country’s huge economic divide. The World Bank says 22 million people in Nigeria do not have the housing they need, the highest number in the world. For years Nigerian authorities have been pledging to address the issue but without much result. In 2019, government officials pledged to supply 1 million affordable houses each year to help meet the demand.

Housing development advocate, Festus Adebayo said the housing programs are not keeping up with Nigeria’s population growth each year, though. “If Nigeria is producing to the rate of 5 million every year, how many units of houses has the government or private sector produced in a year?” he said. Adebayo runs an advocacy campaign for affordable houses and hosts an annual gathering and housing show in Abuja. The show aims to bring government and industry together to address the lack of affordable housing.

He said through the show, hundreds of citizens have been given suitable homes at affordable prices. He warned that housing gaps will worsen by the time Nigeria’s population doubles to 400 million, as it is estimated to do by experts in 2050.

Property developer Banji Adeyemo cites several factors for the high cost of building homes. “This is an era where foreign exchange has taken a new toll entirely and most of the construction materials have foreign input,” he said. “Governments needs to bring down the cost of land and it will reflect on the cost of production by developers for houses. Because other materials you don’t have control over them.”

Nigerian lawmakers this month began considering a bill that calls for rent to be paid monthly instead of once a year to ease the financial burden on tenants. Experts say unless more houses are built, the gap will only widen, and millions will lack affordable shelter.

Source: VOA – https://www.voanews.com/a/millions-in-nigeria-struggle-for-affordable-housing-amid-real-estate-boom-/6458742.html