Why You Should Consider Investing Your 13th Month Salary in Real Estate

Why You Should Consider Investing Your 13th Month Salary in Real Estate

Why You Should Consider Investing Your 13th Month Salary in Real Estate

12th September, 2022

2 minutes, 43 seconds read

As we all know, real estate has been a very viable sector in Nigeria for some years now, who would have thought this will be possible in a country that has always focused on oil and gas for wealth creation for decades. Fortunately, the narrative has changed, thanks to technology and real estate.

According to one of our most recent data published on www.buyletlive.com statistics shows that price volatility in the Nigerian real estate market is due to the overwhelming demand and supply imbalance, especially in Lagos. What this tells us is that there is an abundance of opportunities in the Nigerian real estate market for those who are willing to invest because there is an obvious need for properties which seems to continually grow. With around a million people coming into Lagos on a daily basis (according to Lagos State Government Data Base) for both commercial and other purposes, the demand for land, accommodation and office spaces is always on the high side, this is where we see an opportunity for investment to solve a rising challenge and put some money in your pocket.

While only a few developers and real estate companies can solely build structures on their own, there are many other realtors and developers who are willing and open to take your money to put up structures while you get ROI over time. Due to the exponential success recorded in the Nigerian real estate space in the last decade, returns are certain to be very reasonable, unlike uncertainties that investment in financial instruments present.

Now, the next question would be how do you invest as a ‘small’ income earner? My 13th month? Why invest your 13th month salary? Isn’t this salary supposed to be for some extra enjoyment during the Christmas and new year season? Shouldn’t you save this money ahead of a very long January? Yes, these are all valid questions, but which would you prefer, saving up your money to spend on things that have no value later on or investing it and getting almost double of it or even double in the future? The later seems like a much better choice. Whilst not every employer pays the popular 13th month salary, a reasonable number still do and if you happen to be amongst the fortunate employees, you should take advantage of this idea of investing that money into real estate. From some research we made, it was discovered that real estate companies usually create discounted juicy investment opportunities during the Christmas season, as a form of market strategy to get more people into the real estate space, while this is good business for them it is also very rewarding for an investor on the long run.

Generally, cost of living is assumed to be on the high side during the Christmas season, and there is always an unspoken rule and pressure to spend hugely and celebrate the season, it is usually a period when most families get the time to see one another after so many years, there is usually a higher number of flights tickets sales during this period, however, whilst all these things counts as good memories, you must remember that there is life after the celebration and an opportunity to expand wealth must not be thrown out the window.


So, whether your 13th month salary is 100%, 50% or less of your salary, you must start considering investing it in real estate this year. Remember, you have just three months before December 2022, we trust you to make the wise decision and earn a big smile in the future.

For further help on how to go about real estate investment, you can send us a mail at info@buyletlive.com and we will be willing to help.

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5th October, 2022

3 minutes, 7 seconds read

Top 3 locations to live as a young family in Lagos

The factors that people consider when deciding on where to live vary with the different stages of life of the individual(s) involved. Things like cost, taste and fashion, proximity to work and family e.t.c are top on this list of factors depending o demography, income level and lifestyle. For instance, the availability of clubs, restaurants and other lifestyle amenities, maybe a major consideration for a young person who enjoys nightlife. On the other hand, a 70-year-old retiree would most likely be more concerned about living in a safe neighbourhood with quality healthcare facilities.  

There are many things to think about and prioritize when choosing a place. Typically, your commute time and, ultimately, the quality of life for you and your family, are influenced by where you reside. Some factors are more readily apparent than others. For young families, figuring out where to live and raise children, especially in “the busy Lagos” can be challenging. We have considered a number of factors, including the availability of quality schools, recreation and health facilities, among others and have profiled the best 3 locations to raise a family in Lagos. While there might not be a perfect location that satisfies all of your demands, hopefully, these suggestions will help you make an informed choice that is right for you.

Lekki Phase 1

Lekki Phase 1 emerged as the number one young-family-friendly location in Lagos State. Historically, Lekki Phase 1 has built a reputation for housing some of the best schools, hospitals and recreation centres in Lagos. Towards the end of 2021, Edusko, an education marketplace did an analysis of top schools in Lagos based on their performance in the international and national examinations, performance in both local and international competitions (academic and extracurricular), as well as their alumni achievements in recent years. Based on the analysis, Lekki Phase 1 houses 31% of the schools that fall within the top 25 schools in Lagos. With respect to healthcare, Lekki Phase 1 is also home to approximately 13% of the top 25 hospitals that we profiled in Lagos. Additionally, Lekki Phase 1 also has more than 20% of family/kid-centric recreation centres in Lagos including Upbeat and Fun Factory.

Ikeja GRA

Coming second on the ranking is Ikeja GRA. The Government Reserved Area is particularly notable for housing some of Lagos’ best hospitals and clinics, including the recently launched 72-bed Duchess Hospital on Joel Ogunnaike Street. Other notable hospitals in the neighbourhood include Reddington Hospital, Eko House Hospital, and Genesis Specialist Hospital, among others. Based on our analysis, Ikeja GRA is home to 12.5% of Lagos' best schools, 25% of the State’s best hospitals, and up to 20% of the City’s best recreation centres. Outside its serenity and good road network, Ikeja also has the most family-friendly restaurants, grocery stores and a lot of fun places for you and your young family to bond.

Ikoyi

Ikoyi is notably expensive, but if you are looking for a place where your kids can meet the children of the big wigs in society, then it might just be the best place. Gleaning from our analysis, Ikoyi emerged as the 3rd best location to raise a family in Lagos. With 9.4%, 12.5% and 20% of the best schools, hospitals and recreation centres respectively located here, Ikoyi is an ideal location to raise kids, with a quality of life that is almost at par with what you will find in some of the most advanced cities around the world. 


Closing thought

Barring concerns about high rental/property value, and some other personal nuances, Lekki Phase 1, Ikeja GRA and Ikoyi are the top 3 locations to raise your family in Lagos. In the end, the location you choose will be the one that checks off enough of your own requirements. Having said that, we hope that some of the three factors we've outlined in this piece will be helpful to you the next time you're trying to pick where to reside.

If you are looking to rent or buy an apartment or get a shortlet, go to BuyLetLive.com and find properties that meet your requirements. If you are an agent, developer or landlord, visit the signup page on BuyLetLive.com to create an account and advertise your properties.

We like to hear from you. Send us your comments to research@buyletlive.com and follow us across all our social media pages to keep updated.

26th September, 2022

2 minutes, 52 seconds read

Surging Inflation and how it is impacting the Lagos Residential Rental Market

In the last 12 months, Nigerians have referred to the economic situation as very daunting, especially for new renters in Lagos. With inflation surging over 20% in August 2022, the economic climate has not been very favourable for most low to middle-income earners in Nigeria. As the rising cost of goods and services continues to drive people to spend more in exchange for fewer items, Nigerians are constantly looking out for opportunities to cut down their expenses. 

One way we have seen this play out is in regard to new leases. Over the last half year, our interaction with real estate agents in Lagos has shown that existing tenants who before now considered moving to new apartments are reconsidering. The reasons for this move seem obvious. Cost! When we dug deeper, we found out that moving at this time can cost you almost twice what it will take to continue in your current space, and prospective renters have come to this realization. But why is this?


Rent has surged over 20% in the past 12 months.

If you are looking to rent a new apartment, it is most likely that you will spend 20% more for the same type of apartment in the same location than you would have one year ago. For tenants who have stayed long in their old apartment, the percentage increase will likely be more than that. Where the apartment is newer, especially with modern amenities, the additional premium being charged by Developers and Landlords can go as high as 30% or more depending on the location. When considered holistically, this additional rental burden is a major discouragement for people looking to relocate or move into newer apartments.


Agency commission, legal fees and caution deposits can cost as much as 50% of the rent.

In most parts of the world, traditional estate agents' fees range from 0.5% to 5%, depending on the value of the transaction and negotiating power of the parties. In the UK for instance, the range is 0.75% to 3% according to MoveWise, a UK-based real estate advisor. In the US, the commission is usually between 4% to 6%. Across most African cities, the percentage is higher and can range between 5% and 10%. We have found that for residential rentals especially of less than 10m value, most agents usually insist on a 10% agency commission. In some locations around Lagos, they can go as high as 20% for rental properties of less than a million. In addition to this, a 10% legal fee is usually mandatory, and some landlords can charge as high as 20% extra as a caution deposit. The impact of this is that it shoots up the total amount that prospective tenants end up paying for new leases, and has been a major discouraging factor for most prospects.


The additional hassle of moving and settling in can be very daunting in busy Lagos

Relocation costs can make things worse, but outside the financial cost, the hassle that comes with it wears out quite a number of people. Based on a sample relocation cost quote we got from Packmyload and a number of other Nigerian-based logistics companies, it costs a minimum of 150,000 to move furnishing items in a 2-bedroom apartment in Ikeja to Lekki Phase 1. Judging from the average rental price data that we are currently tracking Lekki Phase 1, this means that a prospective renter will need to pay between 5% and 10% of the rent on logistics.


Closing thoughts.

When considered individually, these costs may be insignificant but can sum up to almost the same amount that a prospective tenant is paying as rent, or even more. What has been your experience with renting a new apartment in Lagos? Share with us by sending a DM or commenting on our social media handles. 


If you are looking to rent or buy an apartment or get a shortlet, go to BuyLetLive.com and find properties that meet your requirements. If you are an agent, developer or landlord, visit the signup page on BuyLetLive.com to create an account and advertise your properties.