Five (5) simple ways to invest in real estate in Nigeria
‘’There is a
popular saying: ‘’that the best time to invest in real estate is five (5) years
ago’’. Investing in real estate is a
proven system of a good investment model which is stable and dependable for
generations of people to rely on and benefit from financially when wisely
executed. Without any doubt the real estate sector has taken a new phase of
been a very lucrative business part in the Nigeria economy of today. With lots
of smart individual investors making huge profit
from this line of business, irrespective of the current economic downturn in
Nigeria.
Investing in Real estate is
an amazing platform for building wealth that should be taken seriously, it has
good tax advantages and is arguably the best way to both generate and save
wealth. Having said this, there are a number of different ways of investing:
each coming with its own unique advantages.
Fear of investing
In this article we will be
educating you on how to invest in the different real estate investment
opportunities available in Nigeria and how you could best leverage on them.
- Becoming A Landlord (Buying residential rental properties)
Buying rental properties is
a tried and tested way of investing in real estate. And becoming a landlord
directly can be great way to invest and earn a living at the same time, however
there are several things that you will want to consider before you give
yourself this title. The most important thing you should do before becoming a
landlord is to make sure that you can earn a profit from it. By finding the
right place for potential tenants and having the ability to market the homes
that you will be renting.
Things
to consider being a Landlord
1. If you are able to deal with
different personalities from tenants.
2. Tenants paying their rent late, and taking advantage of your property
and other Problems that is likely to arise.
3. Maintenance issues and
property upkeep that you will have to deal with.
Being a
landlord can be very beneficial. If you have properties in the right areas and
the right people living in them. Many landlords who own a large amount of
property will have hired help, like property managers to handle many of the
problems that may arise.
2. Flipping Of Properties
This concept here is simple, yet potentially very lucrative. Flipping is a term that is used by many people in the real estate industry and it simply means that one will purchase a property, make some renovation on it to increase the market values and then resell the property for more money than they purchase if for. With flipping, it’s best to look for properties where there is already a strong demand, as this will make it much easier for you to sell afterwards. You need to have a decent knowledge of the local real estate market and be able to renovate cheaply: in order to make a good profit. The quicker you buy and sell, the better, as you will be able to minimize any property maintenance costs such as insurance, taxes and mortgages payments.
- Partnership Investing
One of the major reason that people do not
invest in real estate is the fear of something going wrong and not being able
to pay on their investment, or they may not have the finances that is required
to make an individual investment. You should know that you can still invest in
real estate and you do not have to do it alone. There are many other people who
think just like you do, and they may also be in your situation. One way to
solve this problem and begin investing in real estate is to build partnerships.
This will allow you to invest in real estate and to start building an income of
owning a property. One of the benefits of partnership is having someone else
investing in real estate with you. This will allow for any missed parts of the
process to be covered. If you are new to investing, you can form a partnership
with someone who has invested in real estate before and you will not have the
fear of having to invest all by yourself. if you’re just beginning your investing career, two heads are better
than one. By having someone else invest in real estate with you, you will be
able to set and keep your goals and move forward in the business.
4. Land Banking
This investment strategy involves buying plots of undeveloped land with
a view to selling it at a profit in the future; so Instead of leaving your
money in the bank or investing in stocks, you can put you cash into land. Land
is a fixed asset that is both easy to maintain and is guaranteed to appreciate
in value over time. All you need to do is buy land in a potential catchment
area of a developing city, wait for a few years and sell for a profit. Land banking in an emerging markets is arguably very profitable as they tend to have
plenty of developing areas e.g. Lagos, Abuja, Port Harcourt etc.
5. Property Development
This involves buying, improving, and selling building and land , and arranging for new buildings to be built. By adding value to a property, in the form of erecting
structure for example, you are able to profit more than if you had sold the
land undeveloped. The idea of developing real estate is to maximise the
potential of a virgin land for the best market value. This is what is called
property development business. This method of investing usually requires a lot
of capital and Part of the proactive
steps that a person needs to take is to sell the idea to the appropriate
financier at the inception of the property to ensure that a proper credit line
that could be drawn upon when needed is established.
Conclusion: Investing in real
estate is an amazing platform for building wealth that should be taken
seriously. And I trust & pray you make the most of your walk in this
wealthy path of real estate by reason of this free educative information you
have be privileged to come across. Thank
you for your time. Cheers.
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