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Why You Should Lease As An Investor

Mar 21, 2019

The first question every investor eventually asks himself is, what form of investment recoups the quickest and substantial returns in the market? And in real estate, leasing is pretty much the game changer. Now whilst residence or outright sale might produce a lump-sum at once, a lease offers rental, commercial value and more importantly, ownership even though there is no 100% control.

For instance, a leased property may have about three compartments, with each attracting business, development and value increase all in one. It is the easiest way to remain on the affluence pedestal as the property basically runs itself. I will tell you why leasing should be your best bet;

  • - Cost Elimination Especially for a finance lease where the owner [Investor] retains ownership of the property while the lessee incurs operating cost because he uses the property. As an investor, you hardly ever lose in a lease, considering you earn lease rentals depending on the lease term and agreement. Its a case of you spending less and earning more. In our local parlance, its a case of monkey dey work, baboon dey chop.

- The Property Runs Itself Unlike an outright sale, where you wait for a period to get a buyer who would be able to meet your sale price, leasing offers you a much more commercial spin. You lease a compartment or a whole building and it practically becomes an outlet or a hub for diverse transactions with little or no publicity cost.

  • - Increase In Value The value of the property triples exponentially because of the number of people transacting in one place. It means the value of lease rental increases as the inflow [Both in value and people] increases as well. Its a win on every spectrum when it comes to a lease.