Before you invest in any property, don’t just ask, “How much will this property cost?” Ask the more important question: “How much can this investment return?”That’s where ROI comes in.
ROI means Return on Investment. It helps you measure how profitable an investment is compared with the money you invested.The simple formula is:ROI = (Profit ÷ Investment) × 100Here’s a simple real estate example:You buy a property for ₦10 million and later sell it for ₦15 million.
Your profit is:₦15M − ₦10M = ₦5 millionNow calculate:₦5M ÷ ₦10M × 100 = 50% ROIThat means your ₦10 million investment generated a 50% return, before considering expenses such as taxes, fees, maintenance, or other transaction costs.
Don’t invest based on price alone. Learn to calculate the potential return before committing your money.Save this post, share it with another investor, and always ask: “What is the ROI?”Smart investors don’t just buy property—they understand the numbers.
