Investing In Rental Property Lagos Nigeria - Free Tips For Investing In Rental Properties
in rental property Lagos Nigeria - This guide provides free tips for investing in rental properties in Lagos and everywhere else you decide to invest in Nigeria.
Rental properties provide a unique investment opportunity. It provides an opportunity for the investor to generate consistent income year or year, just like earning a salary. The difference being that the investor is no longer an employee who is paid a paltry salary and tossed back and forth.
| ||The rental property investor is the landlord . . . the boss. |
That is the attraction of investing in rental property . . . consistent income you can depend on all through your retirement if you built enough houses or enough apartments that generate a sizeable income month after month, year on year.
If you are a Lagos Nigeria real estate investor focused on investing in rental property, you will find that at some point you have to decide whether to receive the rent from your apartment buildings or office buildings in small bits or in bulk.
Here's the thing.
Most landlords or apartment owners in Lagos Nigeria collect two years rent in advance when they get a new tenant for their apartment. And the reason they give is that the two years rent allows them to get bulk money they can use for further investment.
| ||For example, two years rent from a house in a central location may be enough for the real estate owner to . . . buy another plot of landbuy a fairly used carpay for the school fees of his kids |
. . . and general do stuff he cannot do if he allowed his tenants to pay the house rent quarterly.
A classical example is the 5 bedroom duplex for rent off Allen Avenue Ikeja Lagos Nigeria. The rent price is two million Naira (=N=2,000,000.00) per annum. The landlord requires two years rent to be paid in advance.
Two years rent amounts to a revenue of four million Naira (about $27,000 USD as at the time of this writing) for the property owner. Now, that is a lot of money.
That money can buy a brand new Toyota Corolla 2010.
See what I mean?
Now to the flip side of the coin.
If a landlord who adopts investing in rental property strategy collects two years rent in advance, it means he will no longer receive any income from the property for full two years.
When most landlords receive bulk money such as above, they usually spend it within three months. They buy something huge with the money and it's all gone within a jiffy.
If you're a retired person living on the income from your property, collecting all your money at once is risky. You may spend it all in no time. Money is one tough beast to keep especially if it's big money. There's always that tendency to buy something big when you have big money.
As a Lagos Nigeria real estate investor who is investing in rental property or has invested in rental properties, you have to decide whether you wish to collect your rent quarterly, every six months, or yearly.
When one of your tenants quit and another is to move in, you will be faced with the decision to collect either two years rent from the new tenant or just one year rent.
The choice is yours.
Two years is a pretty long time to be without incoming revenue if you're retired and fully dependent on revenue from the houses owned by you. In such cases, it may be more profitable to collect your rent yearly or 6 monthly to allow you manage your spending habits.
As always, the choice is yours to make. And you will have to live with the consequences of your decision.
If you're reading this and you're yet to adopt a calculated strategy to invest in a good number of rental properties, this is a wakeup call for you.
The income from rental properties is like residue income. It's income that keeps coming as long as the property is there. And it comes consistently monthly, quarterly or yearly . . . effortlessly, without any serious work on your part.
Yes! It's rental properties for me!
The same should be your resolve. Investing in rental property should be your priority.
The yearly rent that accrues from your rental property investment is easy money you shouldn't miss.
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