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BusinessDay’s television program is an initiative that has helped bring about immense growth and notable progress in the business world. This program is enabled to help reduce the lapses in the economy and also help people stand above these limitations with good decision-making strategies and compiled wisdom from the experiences of top business experts. They are also determined to continually bring about insights and solutions to business-related challenges and concerns.
Proudly aired on BusinessDay’s YouTube platform, the November episode of this channel was a memorable hangout with a remarkable topic which was centred on a theme; Return on Investment in Real Estate. In this current economic state of the country, inflation has been the order of the day and it can not be overlooked. This hangout aimed at showing millennials the importance of Real Estate and how it has helped to manage the inflation in the economy. Real Estate is an innovation that Business owners can be involved in to help them stay afloat during an inflationary economic crisis.
The host of the hangout program was Mrs Eniola Olatunji and she did well by bringing on board the reputable and distinguished experts on the show which includes Madam Oluwakemi Adeyemo(The founder of Future Perfect Limited), Mr Vincent Essien(The partner of Vincent Essien and Company), Madam Fatima Aderibigbe(Head of Sales Property Development Company, Lagos.), Oluwabusuyi Adonis Fakanlu(The co-founder and Managing Director of CAF Limited), Mrs Tope Odigie(CEO at REB360) and Abdul Jabbar Oyekan(Founder and CEO of Yahshud)
Mrs. Fatima opened the discussion by first showing a sense of humility stating that “ In Real Estate you cannot know it all and that she is also on the hang-out to learn as well.” The host further went on to ask her the factors that should be major considerations when venturing into Real Estate investments and Mrs. Fatima laid her first emphasis on location. She further buttressed that Location cannot be overemphasized and it was a game changer in Real Estate. Stating that there are locations with high demand and supply of real estate services that would yield fast and maximum returns while there are some areas that are not favourable for real estate purposes. Secondly, she talked about market trends of the location, and how people tend to patronise the buildings of that place be it for sale or rentals. She further buttressed that the condition of the property is very important if you want to buy the property for use or rent. In areas that are situated in cities like Lagos and Abuja, it is mandatory that effective documentation is done and all legalities to avoid interference by the government afterwards on the property after the huge amount of investment. Lastly, on that question, she talked about economic indicators but she laid major emphasis on the location of the property and it is a wing for other factors to ride upon.
The host went on to ask Mr. Abdul how he gets to know a real estate choice with a great margin that can yield profits and asked that he share the knowledge with the people twhoare interested in venturing into real estate.
He talked about the need to do research around the property axis and great foresight. In areas where Economic activities like industries and refineries are situated, people tend to desire properties in such areas even for rent. He explains that there is a need for general assessment around certain factors which include infrastructural development, what the government is doing in such areas and also commercial activities.
Mr. Vincent further buttressed the points Mr. Abdul emphasized and he said emphatically that he sees real estate as a great opportunity for investment with few parameters in view.
The host asked him what were mistakes that a new real estate investor could make having to just start this financial journey.
He stated the fact that especially young millennials, they tend to buy houses or go into real estate from an emotional standpoint without their cash flow in check. Some people tend to get houses with a lack of updated regulatory standards and approval from the government. He also said that seeking advice from legal practitioners concerning the acquisition of some houses in certain areas shouldn’t be overemphasized as there can be titled men who need settlements over the property. Lastly, he advised that if your cash flow is not big enough to have you be a landowner whereby you are living in the house, he advises you get the house and put it on rent to boost your cash flow.
Mrs. Oluwakemi started by saying she has written a book on real estate titled “How To Avoid Ten Causing Real Estate Mistakes and Build Wealth in Nigeria” which drove her to buttress what Mr. Vincent said from the knowledge she added to her book. She further talked about the importance of not mixing emotions with business and how it can be detrimental to the flow of the business. She further talked about the need to be prepared around venturing into Real Estate and also having an exit in mind. She added that we should not pry into Real Estate without the law; the presence of law practitioners and outside the law too. There is an immense need for documentation. So she did justice in buttressing what the panels that spoke before her had saiMrMr. Oluwabusuyi Adonis came up right after and buttressed what previous speakers had said and also delved into talking about higher income potential, long-term leases, professional tenants, value-based income generators tax benefits etc. He reinstated that it’s the land that is appreciated and not the building. The building technically depreciates and that’s why the location must be considered as a major factor.
Mrs. Tope Odigie came up next to talk about checking the budget before going into real estate which others didn’t get to mention in their insights. She said Iff you want to make money, you need to control the platform” a strategy she learnt from being a media personnel for eleven years.
She talked about the benefits of co-ownership and the beauty of still working around your budget aside from other things.
The host finally asked an open question for all of the panelists to chip in with their answers and great contributions on a question “What are the benefits of real estate compared to other assets?” They all did justice to the question and gave great insights which millennials can ride on for the real estate journey.
With all the great insights provided by experts like Oluwakemi Adeyemo, Vincent Essien, Fatima Aderibigbe, Oluwabusuyi Adonis Fakanlu, Tope Odigie and Abdul Jabbar Oyekan, they have given us the golden tickets to delving into real estate, the guidelines and initiatives needed to make this business venturing a success.
