One of the safest ways to you can store your money and increase your wealth is to invest it in raw land and keep it till the location or locality develops. This is what land banking business entails, It is far better than saving your idle funds in the bank.
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Rather than putting your unused money into a savings account, fixed account or stock shares, smart people like you have taken the alternative to acquire a large expanse of land, keep it or sub-divide it and retail it to people in Plots.
Smart real estate developers in Nigeria had been enjoying and making billions of naira and dollars off the Land Banking Business for years. Take a look at Adron Homes, Revolution Plus, Landmark and other popular real estate investment brands in Nigeria, what do you think they are doing?
These guys are closing massive land banking deals/opportunities across the 36 States of Nigeria, including the FCT.
The Land Banking Process is simple, and I will reveal them to you in these checklists;
The Land Banking Business Checklists
- Buy some agricultural or residential land in a place closer to the city centre, at a price far below the market rate.
- hold (wait) the land for a while
- Lease the land out for temporary use. e.g. farming activities
- Consult your Land Surveyors and Town Planners for Land subdivision advice.
- Perfect your Title and other statutory ownership documents.
- Get the land subdivided into plots and make provisions for estate facilities.
- Develop a gatehouse for the land/estate
- Develop your brand, marketing and sales approach
- Start your advertisement and begin to sell in plots.
Why you should Consider Land Banking Business
Never let anything hold you back if you have the basic capital and the real estate networking requirements, some Nigerians are already enjoying and making billions of naira and dollars off Land Banking schemes. Always consider these;
#1 It Requires Small Capital to Start
it’s a type of investment that doesn’t need you to have several millions of naira to start. Just look for untapped or vacant land that is cheap, and it’s closer to the main city centre, and follow the process earlier mentioned, then begin to close property deals.
#2 Land does not Depreciate in Value
Buy a car today, register it and start using it. In the next one month, you can’t sell it for the same amount you bought it. But the land isn’t like that. Land value does not usually come down, it always goes up. No diminishing returns, no loss in the amount invested.
#3 Long Term Investment
Buy land today, it cost you nothing to maintain it, all you need to do is to visit the location. Your assets are there quietly increasing in value. You can develop or sell it when it appreciates.
#4 Generate Passive Income
As soon as you buy your land, you can start making money from it before development comes, how? You can lease it out to farmers or any other interested person. You can also harvest the trees on the land and make money from it.
#5 Little or no Competition
Of all business investments, the land property has the lowest competition, if any. You can find the land that meets your criteria in no time and still negotiate to get a better deal in time.
#6 Hold the Land as a Finite Asset
Land banking is itself a finite resource. Definitely, the new buildings will continue to be built despite the limited land availability. So, your land will continuously be in demand and will continue to appreciate.
#7 You can Divide the Land into Plots
This is very simple and you know what you can gain or the advantages of this method. Subdivided land is a value-added land which encourages more buyers to come, The subdivided land will give you the opportunity to sell the land more quickly as many people could afford to buy land in small quantity than in large one, More so, you will make more money when you divide the land into smaller units.
Learning Review
If you are doubting about Land Banking opportunities in Nigeria, please take a look at Adron Homes, Revolution Plus, Landmark and other popular real estate investment brands in the country, what do you think they are doing?
Never wait till tomorrow, I will reiterate the land banking process to you as follows;
- Buy some agricultural or residential land in a place closer to the city centre, at a price far below the market rate.
- hold (wait) the land for a while
- Lease the land out for temporary use. e.g. farming activities
- Consult your Land Surveyors and Town Planners for Land subdivision advice.
- Perfect your Title and other statutory ownership documents.
- Get the land subdivided into plots and make provisions for estate facilities.
- Develop a gatehouse for the land/estate
- Develop your brand, marketing and sales approach
- Start your advertisement and begin to sell in plots.
Disclaimer;
The contents of this article are for informational purposes only. Always do your research before you take any real estate advice.
You can also find this article useful;
8 ULTIMATE WAYS ON HOW TO INVESTIGATE A LANDED PROPERTY IN NIGERIA
ABOUT THE WRITER:
I am Bolaji Afolabi. I created bolajiafolabi.com to teach you about real estate and tech-based business opportunities. I work as a full-time partner at Globalclique, a Real Estate + Technology Consulting Company. I am also a CIO at Ibugbe and Partners, a Real Estate Marketing and Development Consulting Firm in Lagos, Nigeria.
Author Profile
- I am Bolaji Afolabi, a Partner at Globalclique, and a CIO @ Ibugbe and Partners - Pan African Real Estate + Technology + HR Consulting Group. Bolaji is celebrated for his expertise in seamlessly blending human capital with cutting-edge technologies, and also providing professional advisory services.
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