HOW TO INVEST IN REAL ESTATE IN NIGERIA

By Emmanuel Lawrence In Building

17

Mar
2022

Have you been confused about how to invest  in Real estate in Nigeria or what it’s about? you and on the right path of this rollercoaster journey, on this post i will be giving you one of the best tips you can probably find on the internet.

 

WHAT  IS REAL ESTATE?

Real Estate is simply properties consisting of land and the buildings on it. A real estate business is a business that deals with the buying, selling, management, and investment of lands and buildings.

A lot of people want to invest in real estate but find it difficult to do so. So in this article, we’ll be helping you with just the right way of investing in real in Nigeria.

Investments are assets acquired to get appreciated returns. Investing is no decision you make based on impulse but facts and findings. To be a successful investor, you must seek consultation from experts in that field. This saves a lot of time for you, stress and helps prevent unnecessary mistakes.

 

WHAT TO KNOW BEFORE INVESTING IN REAL ESTATE?

There are certain important things you must know before taking the action of investing in any real estate. Knowing these things would put you at the edge and save you the troubles of being scammed by fraudulent dealers.

  1. Property Location:

When looking for real estate to invest in, the location of the property is one you mustn’t neglect. It is the most important thing to have in mind, a major factor of profitability. Proximity to amenities, marketplaces, road accessibility, kind of neighborhood is the key valuations to carry out.

  1. Valuation of the Property:

Property valuation is very necessary during the purchase as taxation, insurance, and investment analysis all rely on it. To effectively carry this out, you need a quantity surveyor or an expert in a related field. This valuation would help you know the value of the houses as compared with others and how to make them profitable.

  1. Investment Purpose:

Before you invest, you must define its purpose so abuse does become inevitable. There are 4 main reasons for acquiring a landed property, and these are:

  • Buy and use
  • Buy and lease
  • Buy and sell (short term)
  • Buy and sell (long term)

 

  1. Expected cash flows:

The endpoint of making any investment is simply for profit maximization, if you are not getting any appreciation, it’s considered a liability.

Expected cash flows should be one of the factors you must look out for when investing in real estate. You certainly don’t want to get a land that doesn’t appreciate with time.

Now that you know some of the major things to look out for when investing in real estate, let’s quickly see how to go about it.

ALSO CHECK OUT OUR LIST OF PROPERTIES

HOW TO INVEST IN REAL ESTATE IN NIGERIA.

Real estate is no doubt a lot of money but never be in a rush to go into real estate management. You need to build experience and gather knowledge about it.

Here are some tips on how you can start up your real estate business:

  1. Use Real Estate Investment Trusts (REITs):

investment trusts from real estate are collected investment schemes regulated by the Securities and Exchange Commission (SEC). These schemes get investment capital to acquire profit-producing real estate. These estates are maintained and managed by this Trust.

This scheme is for people who don’t like the hassle of managing properties and are just concerned about making income.  Although this is not very popular in Nigeria.

  1. House Flipping:

House flipping simply means purchasing a house or building and quickly reselling it for profit. The profit in this is that you buy low and sell high but it usually requires some refurbishing.

  1. Property renting:

This is the easiest way of going into real estate and management. All you need do is buy or build on the land and lease it out.  This is the commonest method of making money from real estate in Nigeria. You could rent out apartments, shops, hotel rooms etc.

  1. Property Development:

It simply means buying properties in lucrative places, developing them into luxurious apartments, or commercial buildings and selling them at a very high profit.

  1. Use of Airbnb:

Airbnb is an online marketplace that connects people in need of accommodation to people willing to rent. It is primarily used for lodging, vacation rentals and tourism activities. You can use Airbnb to connect with your potential clients by signing up to their website and following the given instructions.

Property real estate  and management isn’t something you need billions to do, you can start small by affiliation with a company, earning and learning more about it.

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