Dennis Isong: How Off-Plan Property Can Benefit Nigerian Investors in the Diaspora
Real estate investment has always been attractive to Nigerian investors, especially those living abroad. Among the diverse strategies available, the concept of off-plan property investments has emerged as a prominent choice, captivating the attention of these investors for multifaceted reasons.
Historically, the real estate sector has stood as a magnet for Nigerian investors, offering a tangible avenue to potentially lucrative returns. Moreover, off-plan property investments have gained remarkable prominence among the diaspora community. This distinctive approach entails acquiring property during its construction phase, well before its finalisation. The rationale behind this choice is rooted in a constellation of advantages that resonate profoundly with the unique circumstances and aspirations of Nigerian investors living abroad. There are reasons that make off-plan property investments an astute strategy and advantageous for the Nigerians in the diaspora.
The idea of purchasing off-plan properties is enticing because they are often sold at a lower price than fully developed properties. This nuanced pricing dynamic serves as a beacon of opportunity for Nigerian investors in the diaspora who are fervently driven to optimise their investment yields.
Unlike their completed properties, off-plan properties often enter the market at a lower initial cost. This strategic approach enables these investors to procure real estate assets at a cost that aligns harmoniously with their financial objectives, thus setting the stage for a journey marked by capitalization on potential appreciation in property value.
Potential High Returns
Investing in property before completion is a beneficial option for Nigerian investors living abroad because it prevents an opportunity for considerable capital appreciation, allowing them to potentially earn higher returns on their investments if invested. By taking advantage of this potential appreciation, they can secure better gains compared to the traditional method of purchasing real estate. This approach leverages market fluctuations that occur during the construction phase, which can result in greater profitability in the future.
Investing in off-plan properties offers flexible payment arrangements, which is especially attractive to investors in the Nigerian diaspora. This allows them to spread out their investments across multiple payments and manage their finances more efficiently. This approach makes it possible to handle real estate investments remotely.
Diversification of Portfolio
Investing in off-plan properties can diversify your portfolio as a Nigerian living abroad. Real estate is a stable asset class that protects against market volatility and inflation. This balanced approach offers both stability and potential for growth.
Entry into Emerging Markets
Nigeria’s real estate sector offers great investment opportunities, especially in urban areas. Off-plan property investments are a smart way for overseas Nigerian investors to capitalise on emerging markets and secure a profitable financial future. Off-plan property investments are also often considered a long-term strategy. This aligns well with the goals of Nigerian investors in the diaspora who are looking to secure their financial future or build wealth over time. By investing in off-plan properties, investors can benefit from rental income or capital gains over the years.
Potential Tax Benefits
Off-plan property investments can also offer potential tax benefits to Nigerian investors in the diaspora. Depending on local regulations and tax laws, investors may be able to take advantage of deductions, exemptions, or other incentives that can reduce their overall tax burden. These benefits can contribute to higher net returns on the investment.
Contribution to Economic Growth
Investing in off-plan properties isn’t just about individual gain; it can also contribute to the economic growth of Nigeria. As investors participate in the development of new properties and infrastructure, they play a role in fostering economic progress and creating employment opportunities within the construction and real estate sectors.
Mitigation of Currency Fluctuations
Nigerian investors in the diaspora often face the challenge of currency fluctuations between their host country and Nigeria. Off-plan property investments can act as a hedge against these fluctuations, as the long-term nature of the investment provides stability and potential appreciation regardless of short-term currency fluctuations.
For many Nigerians living abroad, owning property back home is a symbol of accomplishment and a way to maintain a connection to their cultural roots. Off-plan property investments offer a practical means to achieve these aspirations, allowing investors to contribute to the development of their homeland while securing their financial future.