You’ve probably heard about Periwinkle investment or periwinkle residences. Maybe a friend or colleague has even asked you to buy land in one Periwinkle lifestyle estate located at Lekki Phase 1.
But how genuine is investing with this company? How legitimate is the real estate investment and what can you get out from it?
Well, that is the essence of this review. I’ll be giving my honest review on the different aspects of the Periwinkle Residences investment, and why or why not to invest your money with this company.
A lot of investment factors would be considered in this review, but the ultimate choice would be on you as an investor to make a decision.
So, What is Periwinkle Residences?
Periwinkle Residences is a Lagos based real estate company and the developer of Periwinkle Lifestyle Estate and other high-end luxurious homes in Lagos. They develop different types of properties such as blocks of flats, terraces, and duplexes, and also offer property management services to people who want to own properties passively.
You can own a residential or rental property through Periwinkle Residences by investing in one of their property investment portfolios and other real estate investment offers.
How Do You Invest In Periwinkle Residences?
Periwinkle residences is offering investors the opportunity to invest in their flagship project, which is the Periwinkle Lifestyle Estate as well as Perfect Homes at Ikoyi.
The company offers debt investment opportunities for terraces and villa homes in both Periwinkle lifestyle estate and Perfect Homes. Investors in periwinkle estate can expect to earn a ROI of 13.4% or 8.5% from Periwinkle’s Townhouse and furnished villa respectively. The investment tenure is a minimum of 2 years.
With investment in Perfect Homes villas, investors can make a debt investment with a return of 15.6% over a 2-year tenure.
How Much Can You Make With Periwinkle Residences?
How much you can make with Periwinkle Residences would depend on how much you invest with the company. But the ROI remains the same for all its property investment portfolios.
You could earn either 13.4% or 8.5% investing in Periwinkle’s flagship estate, or you earn 15.6% ROI investing with their Perfect Homes portfolio.
Periwinkle also has rental income programs where you invest in properties and earn a continuous rental income for a number of years. This type of investment is good for investors who do not just want to make a one-time income but prefer to have a passive income stream from their property investment.
What Are The Pros & Cons Of Investing In Periwinkle Residences?
The biggest pro of investing with Periwinkle Residences is that the investment is pretty safe just like many other real estate investments. No matter what happens, you should be able to get back your principal as well as a ROI depending on what the case may be.
The property is also located at the high-brow location of lekki Phase 1 where property prices and rentals are guaranteed to get high-value patronage.
The cons however of investing with periwinkle Residences is that the investment structure is too rigid. It is probably targeted at naive property investors who are only looking to make returns on their investment.
It is important to note that an investment in Periwinkle residences is a debt investment, which is just like a property bond or a property loan of some sort. As an investor, you are basically financing the development of real estate. Periwinkle gets to reap the long-term benefits while you only get a meagre return.
Also, I believe the ROI is too poor. A 13.4% or 8.5% return in 2 years effectively means that you get less than 7% return per annum either way. This doesn’t give enough insurance against the current inflation ravaging the Naira.
Should You Invest In Periwinkle Residences?
I believe Periwinkle Residences is perfect for some types of investors. If you want to own your home or invest in a rental property as a landlord, then Periwinkle Residences can be contracted to help you develop the property.
Also, if you have a lot of money in the bank with nothing much to do with it, and you just want to earn a return on your capital, then Periwinkle Property would help you do justice. You could invest in any of their investment portfolio and expect a guaranteed return.
However, if you are an investor looking for high returns or looking to hold high-value investments over the long-term without committing too much funds, then Periwinkle isn’t for you. If you do not want to own or manage the property, and you do not want to be the sole investor or landlord in a property, but you want to have long-term equity in a property, then Periwinkle Residences isn’t for you.
While Periwinkle residences is a strategic real estate investment opportunity in a good location and with good prospects, I get the feeling that Periwinkle doesn’t intend to have a long-term relationship with their investors. They are probably looking to crowdfund investment in their real estate properties while reaping most of the benefits.
In my opinion, even though Periwinkle Investment portfolios look stable, they are not exciting enough for me as an investor. The returns are too poor and there is no tangible long-term benefit in investing in real estate which is a long-term type of investment.
So, when the property appreciates in value or the rent appreciates in years to come, only Periwinkle gets to reap the benefits. While I only get a one-time ROI of 8.5% or 13.6% in 2 years!
The question is, why should I invest in Periwinkle Residence for such meagre returns and no long-term benefits when I could easily get a 10% to 20% ROI annually with other safe investments?