SUBTITLE – HOW TO INCREASE ROI ON A PROPERTY INVESTMENT*
The acronym ‘ROI’ stands for *Return on Investment*.
As a prospective land or home owner, ensuring that any property you invest in will have a strong return on investment a.k.a ROI is a very important factor to consider before making any property purchases.
Without a strong enough ROI on your property, you’ll be missing out on an important opportunity and a key to continuous and sustainable wealth creation.
As a matter of fact, we would argue that even above every other metric for investing in property like; location, size etc whether or not the property has a strong ROI is the most important factor to consider when choosing a property to invest in when the goal is wealth preservation or creation.
That being said, the big and obvious question becomes, how do I ensure the ROI on my property is strong enough to be worth the investment?
Take a look at 3 practical ways to ensure just that.
- Research the Market– In terms of capital gains and income, property investing has paid off handsomely for many people, but you must go into it with your eyes wide open, acknowledging the potential advantages and disadvantages. If you know someone who has invested in properties, ask them about their experiences, the good, the bad, and the ugly, and learn from them.
Learn about the cost of investing in properties of any kind as well as the cost of maintenance. Discover great areas to invest in, and areas to stay away from.
- Choose a Promising Location- While we said ROI is more important than location, location is one metric for measuring a potential ROI when it comes to property investments.
A promising location neither means the most expensive, or the cheapest area. Rather it refers to a place which has potential to yield and appreciate in the long run. The decision on what constitutes a promising location also covers considerations such as; Security, proximity to key amenities amenities developments, an influx of or the potential to attract an upwardly mobile crowd in the short or longterm.
You also want to consider development rate and projections in the areas you’re looking to invest, as well as land and property appreciation rates in the last 5-10 years to weigh the potential for growth in your investment.
- Improve the Property– The better maintained and developed a property is, the more attention it will draw, and the higher the value that will be place on it.
As a property owner you want to ensure that you respond quickly to maintenance needs, and go the extramile to upgrade your buildings with modern fixtures and fittings; even to the point of redesigning when the need arises to keep your property value up. Possible even beyond what obtains in your neighbourhood or locale.
At PWAN Haven, we own landed properties in Nigeria and Africa’s fastest growing corridors (Ibeju-Lekki)and urban and residential developments across the Country. Family-friendly properties as well as affordable single-housing forms part of our considerable portfolio, so whether you’re looking to start with lands, a home, or properties to be repurposed for rentals, we ar