Are you in the situation where you would love to buy that property but there’s this other investment that’s “bad ass” and also guarantees great returns in just 6months! The idea of keeping your money tied to a property which by the way, only guarantees returns on a long term basis can be demoralizing especially when you have other options of doubling that same amount in a very short period. Real estate is lucrative, secure and ensures wealth creation but it’s long term and you want to make money sharp sharp after all “it’s all about making more money!”. Most times the options we see aren’t the only ones that exist. What if investing in real estate and investing in that great business idea aren’t mutually exclusive? What if you can eat your cake and have it and even ask for “jara”?
Want to know how? Well the answer isn’t far fetched- “Installment plan”

Investment


Learning how to use installment plan to your advantage! Most real estate companies now accept installment payment simply because it’s a great strategy to getting clients plus it’s easier to pay for a property in bits. It takes the pressure off getting a property and you don’t have to wait till you have a lump sum to own a property.
I know that most people think that people who opt for installment plans are only those who can’t afford to pay upfront which is very true but like a coin it works both ways. So for instance you have 2million Naira and buying a land in Ibeju Lekki (you can view our lands for sale in Ibeju Lekki here) is a great idea and it costs 1.8million but you also want to invest in that great business that promises to yield great returns in 6months which requires 1.6million you wish you could do both if only you weren’t limited by scarce resources but alas all isn’t lost and you don’t have to choose between the two!
these are a few simple steps that you could do:

Step 1: Tag real estate as option A and the other business idea as option B(am assuming that all the risks involved in this option have been reduced to the minimum and that the principal amount can be salvaged or that the tendency to loose initial capital is considerably low).

Step 2: Compare your ROI for option B with the cost of choosing an installment plan over a one time full payment. (Most installment plans attract interest rates)
PS: Your ROI for option B must be big enough to decide to temporarily set aside a safer venture.

Step 3: Make your first Installment. (Pay the 400k that is left after investing in option B. You must pay all of it even if it’s bigger than the first installment it would reduce the pressure of making further installments from out of pocket expenses) that way you not only secure the property, you secure it at the present going price in other words, a price increase doesn’t affect you and your investment appreciates even though you haven’t fully paid for it.

Step 4: Invest in that great Idea and make good money.
PS: To pull this off you must have a steady stream of income to reduce the pressure of making future installments promptly. This works best if investment B is short term.
for great installment plans click here.
If you found this helpful please share they would be glad you did and would thank you for it.

Confidence Iwuoha
Realtor/Property Consultant.

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