- August 28, 2020
- Posted by: admin
- Category: Uncategorized
Despite the devastating impact of COVID-19 on all sectors of the economy, experts believe it is not over for real estate, even as they reel out silver linings for investment. Dayo Ayeyemi reports
To conservative individuals, this is not the best time for real estate investment due to COVID-19 crisis, which, within the space of five months, has partially eroded some of the gains of the sector over the years.
To them, despite various government’s recovery-related financing support, the property aspect of the industrial, retail and office markets has continued to be severely challenged no thanks to rental payment holidays, review of occupancy space, closure of small and medium-range retailers, high-level vacancies, and diminished product and services sales.
But to the shrouded investors, the best time for real estate investment is now when the interest rates are out of this world, and investment in treasury bills is no longer attractive.
Speaking with some experts on what this season holds for real estate investment, they said in spite of COVID-19 impact on the sector, there were pockets of opportunities where knowledgeable investors could put their monies without burning their fingers, describing it as “areas of silver lining.”
To them, investments in middle-income property, rental property, and low-cost housing are areas of silver linings. Speaking with New Telegraph, Principal Partner, Richard Olodu and Co., Mr. Richard Olodu, said that the good thing about real estate investment was that it never depreciates.
According to him, COVID-19 has already dealt with all sectors and investments, pointing out that the best thing about real estate investment “is that you will get your investment back.”
“The yield may not be high but you are going to get your returns,’ he said. He stated that people were currently looking in the direction of real estate because of high-interest rates and treasury bills, which, he said, were no longer attractive.
Olodu, a former spokesperson of Lagos branch of the Nigerian Institution of Estate Surveyors and Valuers, said: “Real estate investment provides the best way to keep your money.”
He argued that no matter the quantum of money in the hands of investors, real estate had enough space for diverse investments.
“People have money but it also depends on the quantum of investment they are looking at, ranging from low income to high income,” the property consultant said.
As of today, according to Olodu, investment in middle-class property has the market, explaining that with N40 million or more, people could invest their money and get high returns on investment (RoI). “It is not everybody that can afford N500 million.
With N100million, you can buy some flats, renovate them and sell to the middle class, and make your returns,” he said.
Credit: New Telegraph