Every smart investment-oriented person knows that real estate is a passive way of earning good long-term income. But affordability is a problem for most people. The challenge is less of the huge cost but the lump sum.
Also read: Real Estate Investing In Nigeria: A Pro’s Analysis Of Risk And Returns
These costs include:
- The cost of the land
- The survey plan fee
- Legal documentation fee
- Architectural plan fee
- Structural drawing fee
- Developmental fee
All these costs run into units, tens or hundreds of millions of Naira depending on the property.
The good news is that some super-smart investors are adopting a strategy called the highly flexible payment plan to achieve their real estate goals.
What then is this plan?
Before I explain what a flexible payment plan is, let me first define an instalment payment plan (an instalment).
An instalment is a plan that allows you to pay for a property in piecemeal/bits. That is, you are allowed to spread the payment over several months or a few years.
With a flexible payment plan, on the other hand, the seller/owner understands that you might default payment for a few months but expects you to pay up before the expiration of the period.
Sometimes, we all find ourselves in out-of-control situations that make us default payments. That is what makes the flexible payment plan deal better than the instalment.
With this payment structure, super-smart real estate investors purchase property with payment spread over several months or years.
It’s not worth it living to share a regret instead of a success story. You have no reason not to invest in real estate and enjoy capital gain and/or a rise in rental income in the future.
Donald Karo
