LAND BANKING IN NIGERIA

Monday the 17^th day of July 2017, The City of Lagos witnessed the birth of a new company and by the grace of God I was privileged to be a major promoter of this company and their External Solicitor.The name of the company is BERKELEY PROPERTY INVESTMENTS LTD.

The object for which the company was established among other things is to carry out the business of property acquiring, Estate development, investment in real Estate, acquire, hold and dispose all interest in landed properties. (www.berkeleypropertyinvest.com)

The company’s mission statement is determined to empower Nigerians through property ownership and its vision is to facilitate wealth creation through innovatively investing capital skill and knowledge into property development.  In their portfolio they have four (4) Estates namely: ROYAL HERITAGE VILLAS,THE VINE VILLAS ,BLESSINGS GARDEN VILLAS, AND EXCEL GARDEN VILLAS all situate within Ibeju Lekki Local Government Area of Lagos State.

I assisted and contributed my quota to the growth of this company for so many reasons, which has also motivated me to write on the TOPIC: LAND BANKING.

Years ago, before development came to Ibeju-Lekki axis of Lagos State,  my friend  bought ACRES of land from one of the indigenous families in the locality. According to him, he wasn’t quite sure he was making the right decision when he purchased the land because he diverted all the proceeds of a business on the investment.

His initial intention for purchasing such vast size of land was to use it for Agricultural produce but circumstances did not allow him achieve that purpose, so he left the land not sure of what may happen afterwards. But for the fear of trespassers and the dreadful land grabbers sighting the land on a choice location, he took immediate possession by planting some crops as well as constructing a perimeter fence on the land.

Fast forward to 2010 – 2011, the Lagos State Government started a massive development plan in the area (The Sea Port, Lekki Free Trade Zone, The Fourth Mainland Bridge, The Refinery etc), and just like that, the demand and price for land in  Ibeju-Lekki axis tripled.

He told me how he didn’t have to look for buyers. “I got offers from every direction, that I was so confused… I eventually started selling to the highest bidder”. His eyes lit up as he adjusted in his seat “I immediately realized the opportunity and fortune I could make in the nearest future, so as I sold, I acquired more and today….I have a permanent financial breakthrough because I am still selling”.

 As I listened with rapt attention, I watched his body movement, the pride in his eyes and the confidence in his voice, even his laughter conveyed a message;  inspired by his story, I decided to write a reminder, a motivation and to enlighten my readers on LAND BANKING.

LAND BANKING is an aspect in the real estate sector that has been known by few for decades, a goldmine yet explored, but recently gaining popularity in Nigeria. These very few that had prior knowledge about land banking, has made from it a lifelong wealth. Today, I will be discussing on what land banking is, and how you can use same to build wealth.

The illustration above gives you a practical idea of what Land Banking is.

Land banking is a real estate investment structure which involves buying of land in either small or large quantity for a reduced amount, with an aim to develop such land, and selling the same for more profit.

Another aspect of land banking is buying vast expanse of land in an undeveloped area for a cheap sum, keeping the land for a couple of years, then putting it up for sale when development has gotten to such area snowballing the price it was bought. This aspect of land banking is very common in Nigeria.

For you to have a better understanding, think of land banking as your normal banking system which entails depositing money and receiving interest on the money saved either through a fixed deposit account or a regular savings account. The difference between your normal banking system and land banking could be better explained in this chain. For your normal banking system, you receive a token on interest compared to the amount you saved in the bank.

In land banking, the amount of interest you receive after savings in a land is usually double the amount saved. For example, floating One million Naira in an interest yielding account can only avail you 7.5% per annum; but buying a property for a million naira can fetch you Three Million Naira or more in the succeeding year, at no cost.

So many people in the world have built wealth through land banking. Example are the likes of Ooni of Ife, Oba Ogunwusi (before he became Ooni of Ife), Folorunsho Alakija, Otunba Wale Akinboboye of Lacampagne Tour and Resort, Chief Emmanuel Oyedele Ashamu, George Washington, Donald Trump, and many more.

Anyone can make extra income with this real estate structure, all you need is the right information to help you make a good investment. Land banking comes with a guarantee of great profit returns in a scope of five years. This is assured because it has proven to be one of the most profitable business either for a short or long-term.

For any investor going into land banking investment, it is desirable to be conversant with basic highlights like, how to spot a good investment opportunity, when to buy a land, when to sell, when to develop etc. For example, when you buy a land in an undeveloped area, the best time to sell is when the area the land is situated is at a developing stage.

Another thing you should consider when going into an investment in land banking is getting your own legal adviser and financial adviser. This is actually very important when investing in land banking scheme because of the unlimited likely challenges to be faced in such investment.

There are steps to take to make wealth in land banking. From my experience as a Legal Practitioner and a key player in the Nigerian Real Estate Industry, I have listed  5 steps to take to make wealth in the real estate sector…. Click here to read more on the 5 steps.

If this article makes any sense to you and you have idle funds thinking of the right investment to make, why waste time, think of depositing that funds in LAND BANKING today and I assure you there will be no regret. Are you a Nigerian in Diaspora and you need assistance or support in investing in Nigerian Real Estate Industry, as one of the strongest sector in Nigeria today, why waste time , send me a mail at (ibejulekkilawyer@.com) or whatsapp me on +234 803 4869 295 for a FREE CONSULTATION.

Don’t forget to Click here to read more on the 5 steps to make wealth in Nigerian Real Estate Sector.