It is amazing the things you can do with real estate. Apart from buying land and living in the houses you build or buy, you can use your properties as an investment to secure your child’s education. Don’t let these terms confuse you.
In simple English, you can start earning so much from a property that it becomes a source of passive income, it accumulates so much value in rent that you can use it to settle other bills for yourself and your family.
Using Your Property To Secure Your Child’s Education
We had a client last year, who was into Fintech. He was ready to start a family with his wife but feared how he would cope with finances. He wondered how he could provide for his child when he/she was ready to start school or if something happened to him and/or his wife. Luckily, he already had some background in investments and real estate. In fact, he had just started a payment plan for our Oxford Apartments at Surulere.
He discussed with some other financially inclined friends and his wife and they came up with something. They decided that the one-bedroom apartment he had purchased from us at Oxford Apartment will serve as a trust fund for his kid.
What does this mean?
After he has taken possession of the building, he can start earning from it through rent. To put it in perspective, owning a lease property in Oxford Apartments or Oxford Prime Apartment means that he will earn as much as 600,000 Naira yearly as rent. If the property he owns was to be Bradford Homes (which means full ownership), he can earn as much as 4,000,000 (Four Million Naira) annually as rent.
Since our client is trying to use real estate as a future investment and trust fund for his child’s education, he set aside a different account for the rent. As his child grows, he has an amount set aside to further his education in the next 5 or 10 years.
Let us do the math…
- If he collects 600,000 Naira yearly for 20 years (Lease period for Oxford Apartments)
NGN 600,000 * 20 = NGN 12,000,000
- If he owns a property in Bradford Home then he owns the property for a lifetime.
He will earn as much as N4,000,000. If the rent remains the same for 10 years:
NGN 4,000,000 * 10 = NGN 40,000,000
This is assuming that rent for the properties in these areas does not increase and it is very likely to increase as the years go by. Rent in Lagos is estimated to increase by at least 30% every 3 to 4 years.
In conclusion
To sum all of this up, what our client has done is secure his child’s future through investing in real estate. 5, 10, or even 20 years down he has a source of income and his child is safe regardless of anything that might happen.
The thought of us not being there for our family is a very scary, yet realistic possibility that we fear to imagine. However, when you have put things in place for your family you feel safer and more secure in any situation.
You can also be like this client, invest in real estate and secure a safe financial future for yourself and your loved ones. You can get a unit or apartment in any of our other properties in Surulere, Yaba, or Shomolu or look through all our available projects to find what suits you and schedule an inspection. There is nothing better than seeing it for yourself
Remember, to earn is human but to invest is divine.
