Are you thinking of investing in a property business such as duplex or flat-apartments? But you are yet to decide the best option that will suit your plan.
Or maybe you are in the process of “buying/building a duplex or flats apartment in Nigeria” and you may want to know the one that will be more profitable.
In this blog post, we have explained in detail the reason why you should either invest in duplexes or flats apartments.
Before buying/building a property, there should be the main objective for doing so. Either you are buying/building it to use it with your family or you are buying/building it for the purpose of cash flow (investment) that is, putting it out either for rent or to resale it for profit.
Your main goal is what determines the best option among the two.
Different between buying/building a property for investment purposes and for buying/building a property to living in
There is a big difference between buying/building a property for the sake of making a profit and buying/building a property for the purpose of living in it with your family.
The property you bought for the “purpose of living” should be a property that suits your test of lifestyle and comfort although this type of property doesn’t give you cash flow yearly or monthly rather it will require maintenance and other extra expenses such as electric bill, security bill, etc.
Whereas a property you purchase for the “purpose of investment” will yield income either yearly or monthly depending.
This is why your main goal of acquiring a property is very paramount.
Should I buy/build a duplex or flat apartment for investment purposes?
If you are thinking of best investment for yourself among the above mentioned properties, we advise you go for flat apartments.
Reasons why you should buy/build flats apartments (houses) for investment purposes.
Investing in flats of apartments (also known as multifamily properties) in Nigeria is one of the best subsets of real estate investment that will give you the greatest wealth building in life.
Although it requires fund, time, knowledge and commitment.
Let’s say you buy/build a unit of 4 flats of apartments where each flat has 2 and 3 bedrooms each and you put it out for rent.
By so doing, you will be having an annual cash flow of income (passive income) because here in Nigeria there is a high demand of 1, 2, and 3 bedrooms flats of apartments for rent because of people’s level of income.
Also if one tenant decides to pack out anytime you can easily get a new tenant within a short period of time.
Another reason is that, let’s say you have an urgent need of money to solve your financial problem while having this type of property.
You can easily get a buyer that will want to buy one of the 2 or 3 bedrooms flats apartments. While you still maintain the yearly cash flow of other apartments.
In a case, you don’t want the problem of troublesome tenants and you wish to buy/build and resale, this is equally another way of making huge profit in real estate properties in Nigeria, especially when you buy at off-plan or you build with a test.
The good thing and the general truth is that selling or renting of flats of apartments in Nigeria moves very fast than duplexes, irrespective of the locations because of people level of income and high demand for such properties.
When it comes to the maintenance aspect, an apartment is easier to maintain than a duplex.
In the aspect of Cash flow, buying/building an apartment gives easier and quick cash flow than duplexes in Nigeria.
Reasons why you shouldn’t buy/build a duplex for investment purposes instead buy/build flats apartment (houses)
In the aspect of renting, one of the major challenge of renting a duplex is getting a tenant to occupy the building.
Getting a tenant for a duplex always takes a long time even if it’s in a classy neighborhood, unlike apartments. At the same time, it can only be occupied by one tenant.
Even after you got a tenant, maybe the family manage to live there for 3 to 5 years and get their own house. To get another tenant that will occupy the house will take another time (depending on how the previous tenant left it) by so doing it is hindering a cash flow of income.
Another negative thing about duplex in terms of rent is that, if the one tenant refuses to pay house rent because of his or her financial incapability, at the same time reluctant to pack out of the premises, this will hider cash flow of income.
The key thing that affects duplex houses is people’s level of income in that location.
Investing in a duplex requires you to do a feasibility study of the kind of people that are likely to patronize your services if you are putting it out for rent.
Else, after buying/building the house you may end up getting the wrong tenants or staying for a year or more before getting a tenant.
Cost of maintenance – maintaining a duplex is high to compare apartments, especially the ones that are built in an estate environment.
In a situation where you want to buy/build to resale it and make a profit. This is also good, but its major drawback is getting a buyer on time, unlike an apartment.
Duplex is a luxury home, which will require some specific type of people to acquire. At the same time, you are required to build/buy a duplex in a classy neighborhood.
Selling a duplex with better profit takes a longer time to get a serious buyer although is a matter of location unlike in the case of apartments.
While apartment can be built at any location be it a classy neighborhood or underdeveloped location.
Should I buy/build a duplex or an apartment to live in?
If you wish to build or buy a house to live in with your family we advise you to go for a duplex that is if you have the money instead of an apartment.
The reason is that as an individual we always want privacy, comfort, space, and abstinence from other people’s trouble. These are what you can get if you go for a duplex instead of an apartment.
Also, going for a duplex will help to avoid uninvited people in the compound and fewer chances of getting rubbed by hoodlums.
Whereas going for an apartment will attract people’s attention to your private life also, trigger unforeseen circumstances.
What to consider when making a decision on whether to invest in a Duplex or apartment
When investing in property choosing a good location is one of the optimal decisions you should consider. It is important to choose areas that are highly demanded and the type of property you are bringing into the market is limited.
What makes a location great are things that are close to lifestyle amenities like public transport, shopping centers, schools, restaurants, and parks, as these are all things people are looking for.
Also, a good location is an area where the government is implementing new projects to enhance the economy and to better the lives of the masses.
In such area, houses and other human necessities will be highly needed.
In conclusion, choosing a good location does 80% – 90% work for you in terms of having a good and profitable investment.
- Capital growth:
This simply means how property appreciates in value over a short period of time. Irrespective of the type of property you wish to invest in, another important thing to put into consideration before going ahead is how likely the property is to appreciate in a specific period of time.
The truth about property investment is that there are properties whose appreciation value is very minimal, and there are properties that are hot cake in the market and their appreciation value is very fast, and when you invest in such properties it can easily transform your financial status.
How do I find such property and subscribe to it? This is where you need an experienced realtor to work with. Looking for one, connect with us today, we are interested in giving you the best real estate deal.
- Reliable rental return:
In a situation where your objective is to place the property for rent in other to gain yearly passive income.
You should consider the possibility of having a consistent and reliable return of income yearly.
This decision can be influenced by the location of the property, the type of property, and the class or type of people living in that area.
The best decision on which one to go for is dependent on your main goal of purchasing/building the property.
If your main objective is to buy/build a house to be used by you and your family go for Duplex, but if your goal is to make monthly or yearly cash flow, go for flats apartments.
Which places in Nigeria are best to invest in properties and get maximum return on investment within a short period of time?
When it comes to property investment in Nigeria the best and hottest places to invest in for a maximum return of investment are:
- Port Harcourt
Lagos is the number one place to invest in, because of the high demand for accommodation and the huge population of people.
When you invest in real estate property in Lagos you are sure of a good return on investment within a short period of time especially when you invest in good locations and prime areas.
There has been a consistent increment of house rent in Lagos especial those in a good location and best condition, at the same time, house rents are very much expensive these days and people are still going for it.
This is to tell you that property investment in Lagos Is a good business in Nigeria.
In a situation where the investment purpose is to buy/build and resale that is another area where investors make a huge amount of profit in Lagos.
Because there is always a constant demand for homes, shops, schools, and office environments in Lagos
Due to the high demand for properties in Lagos wise investor buys different properties from real estate developers at off-plan (at a cheaper price) before the project commences and resale it after the project is completed.
By so doing, this act enriches them to make a good return of investment within a short while.
Abuja is another second place in Nigeria that one can invest in. It equally has high demand for modern houses, especially in the prime area.
Property investment in this area is equally good, but there are certain types of properties that yield better returns than the other.
Properties like land, duplex and modern apartments sell very well but not as in Lagos Nigeria.
Before investing in any property in Abuja, you will need to work with a trusted and experienced realtor in other for him/her to guide you against making mistakes in a real estate deal.
Investing in real estate property in Nigeria is good and profitable only when you do it right.
Port Harcourt popularly called PH is another third place in Nigeria that is good to invest in. property investment in this area also guarantees a good return.
The appreciation time frame is encouraging. There is nothing so pleasing in real estate investment that you bought a property for a specific amount, and within 6 to 12 months that same property has appreciated to 70% to 100%.
This is definitely what is called good investment.
Meanwhile, it is paramount before investing in any of these places mentioned above, you do due diligence and work with a reliable realtor.
In other to avert any issues as well as to get a better deal in real estate properties.
FAQ (Frequently asked question)
What are the advantage of investing in Apartment in Nigeria?
- The high return of investment in terms of reselling
- Constant cash flow of income
- Having an asset to fall onto when you are having financial crises.
- Having a passive income.
What are the disadvantage of investing in Apartment in Nigeria?
- Having troublesome tenants to deal with.
- The yearly cost of maintenance of the building
- The inability for some tenants to pay rent when due
- Misuse of the apartment by some tenants.
What are the advantage of investing in duplex?
- Having more bulk money when house rent is due or when reselling
- Having fewer tenants to deal with.
- Having an asset to fall onto when you are having financial crises.
- Cash flow
What type of house should I buy/build for me and my family?
We strongly advise if you have the money you go for a duplex or terrace for comfort and privacy.
Should I buy or build my own house, which one is better?
It depend on your capital intensity and if you have the time to monitor the construction. If you have the time and capital it is wise to build your own house according to your test. Although it can be so stressful. Otherwise you go with the option of buying from reliable developer.
You may want to check out >>>
I hope you find this post useful, for more inquiries, to schedule a site visit, or to find out how to get a property that suits your needs and budget contact us.
Also, if you have any questions, contributions, requests, addition, or corrections please feel free to drop your comment on the comment box below.