It is the conversation happening in hushed tones at farewell parties across Lagos. The visas are stamped, the flight to Heathrow, Toronto, or Texas is booked, and the suitcases are packed. But there is one heavy item that won’t fit in your luggage: Your House.
For thousands of Nigerians joining the “Japa” wave, this moment brings a paralyzing financial dilemma. Do you sell your property to raise a bulk settlement fund for your new life? Or do you hold onto it, risking the stress of managing a tenant from 4,000 miles away?
This isn’t just a real estate question; it’s an identity question. Selling feels like burning a bridge- a permanent severance from home. But keeping it feels like a burden.
Before you put that “For Sale” sign up, let’s look at the numbers. The answer might not be as simple as “cash out and go.”
The “Quick Cash” Trap (Why Selling Hurts Later)
The temptation to sell is understandable. Relocating is expensive. You need proof of funds, rent for your new apartment, and a cushion for the first few months. Seeing a bulk sum of ₦80 Million or ₦150 Million sitting in your account feels like safety.
However, real estate is a long-term game, and selling in a panic is often a regret in the making.
When you sell a Lagos property to convert to FX, you are at the mercy of the current exchange rate. But more importantly, you are exiting the market right before its potential maturity.
As we discussed in our guide on Capital Appreciation, the real wealth in real estate is made while you sleep. By selling now, you cap your gains. You miss out on the future value of that land, especially if your property is in a regenerating zone like Yaba or Ikeja.
Selling gives you liquidity now, but it strips you of generational leverage later.
The Short-Let Revolution
If you choose to keep the house, the traditional route is the “Annual Tenant.” You find a family, they pay for a year, and you hope they don’t call you at 2 AM about a leaking pipe.
But there is a more aggressive strategy: Short-Let Conversion.
With the rise of tech nomads and the constant flow of Nigerians visiting from the diaspora (the “December Returnees”), the demand for well-furnished, short-stay apartments is skyrocketing.
For example, a 2-bedroom flat that rents for ₦3M/year could potentially earn ₦6M/year as a short-let, even at 50% occupancy.
Unlike annual tenants who might hide damage for months, short-let guests are checked out weekly. Your apartment stays cleaner because it has to be cleaned every few days.
Also, when you visit Nigeria, you don’t need a hotel. You stay in your own home.
However, this requires a location that makes sense. As we highlighted in The “Mainland Luxury” Myth, smart money is moving to areas that offer connectivity. If your property is in a prime Mainland hub, the short-let demand from business travelers is consistent year-round, not just in December.
Fear of Managing from Abroad)
“But who will manage it?”
This is the number one fear. We’ve all heard stories of caretakers running away with rent or family members living in the property for free and letting it rot.
For the diaspora investor, the fear of “absentee ownership” is valid. You are worried about safety, legal titles, and sudden government policies. We addressed this specifically in our article on Demolitions and Diaspora Investors. The key takeaway? Structure beats hope.
You cannot rely on “cousin Segun” to manage a multi-million Naira asset. You need:
- Professional Facility Management: A company that takes a percentage of the rent in exchange for handling plumbing, electricals, and tenant vetting.
- Proper Legal Structures: Ensure your C of O and other titles are perfected before you board that plane.
The Hybrid Solution: Trade Up, Don’t Cash Out
Here is the third option that many don’t consider.
If your current house is an older building that requires too much maintenance to be a viable short-let, don’t just sell it to keep the cash. Sell it to re-invest in a low-maintenance, high-yield asset.
Many savvy investors are selling their older, standalone duplexes and moving that capital into Commercial Off-Plan units or modern apartments that come with facility management built-in.
Why?
- Zero Maintenance: You aren’t fixing roofs. The facility management company does that.
- Better Cash Flow: Commercial units (like shops or office spaces) often offer longer leases and corporate tenants who cause less trouble than residential tenants.
Unsure if you should swap your residential home for a commercial investment? Read our breakdown on Commercial vs. Residential Off-Plan: Which Fits Your Goals? to see which asset class protects your future best.
In conclusion, leaving Nigeria doesn’t mean you have to leave the Nigerian market. The goal of “Japa” is usually to seek better opportunities, but some of the highest ROI (Return on Investment) opportunities remain right here in Lagos real estate.
Instead of severing ties, transform your property into a “Toll Gate”-an asset that keeps generating revenue for you while you are away. Whether you convert it to a short-let or trade it for a stress-free off-plan unit, the goal is the same: Let your Lagos property pay for your London lifestyle.
Are you looking to re-invest your property funds into a hands-off, high-value asset before you travel?
Check out The Resale Value Advantage to see how Casafina’s off-plan projects are designed to grow your wealth while you focus on your new life abroad.