Having Invested in Properties in UK, US and Europe, I am been advised to invest in property in Nigeria but am unable to see the investment attraction of the Nigerian property market due to the Following reasons,
1. Capital Intensive---U require a lot of capital or else u have to get mortgage @ a high interest rate and requires 30% deposit unlike overseas where u can get lower interest rate and 15% deposit.
2.Purchase Cost vs Rental Income:- Some properties advertised for N7million will rent for between N250k- N350k hence that is less than 5% yield, Other Investment vehicles such as shares, bonds, mutual funds; fixed deposits in the same country will give better yield per annum.
3. Ownership issues-- Omo oniles; fake documents; govt acquisitions
4. Non Payment of Rents by tenants- which is relatively high risk in Nigeria
Although there is argument for price appreciation, with the economy tightening worldwide; oil price decline am i wrong in thinking that the boom may be over,
Floor is open for all contributors, lets hear what u think