Real Estate Investment In Nigeria
Real estate investment in Nigeria has lots of opportunities. If you are looking for a way to invest your savings…., why not consider real estate investment in Nigeria.
The real estate market in Nigeria has lots of opportunities, But for the sake of this writing, we are going to base this blog post only on buying a landed property, house and building.
Though this is not the only way one can make a real estate investment in Nigerian.There are other ones that will be covered in our next blog post.
What is Real Estate
Property comprised of land and any structure(s) or natural resource on it, including water bodies and mineral deposits, as well as any flora or fauna.
Based on usage, real estate can be grouped into three broad categories:
- Industrial properties, e.g. factories and mines.
- Commercial properties, e.g. office buildings, retail store buildings, and warehouses.
- Residential properties, e.g. undeveloped land, condominiums, and private residences.
Opportunities in Real Estate Investment in Nigeria
Land flipping
One of the great ways of real estate investment in Nigeria is to buy land and sell it at a higher price.
It is particularly profitable when you buy in a rapidly developing area, in which case you can make up to 100…%…. in profits within a few months, or years, as the case may be.
You can start small by buying just a plot. Or if you have enough capital, buy as much land as you can and keep selling all year round.
While acquiring lands, ensure the following
- Buy in areas that are rapidly developing if you want to sell within a couple of months. Some areas are faster than others.
- Ensure you obtain all the documents for the land that show you are buying from the legitimate owner. The documents should include a Certificate of Occupancy or a Governor’s consent. Ensure that you don’t get mixed up in land issues. Acquire lands with the appropriate land titles.
Become a Real Estate Agent
This is a good option if you don’t have the capital to make an investment. You can simply offer your services to property owners who are looking for buyers.
Becoming an agent means you get a commission after you find a buyer for the property. The common rate is 10%. So let’s say you find a buyer for a 40 million naira property, you stand to get a commission of 4 million naira.
To become a successful agent, you need to possess good networking skills in order to locate buyers and sellers.
Conclusion
Investments are essential for wealth creation. It’s not enough to leave your cash in the bank, where you will get negligible monthly interests. Invest in real estate today. It is something you have to do at some point before you retire, if you want to be comfortable financially. Why not give yourself a good head start?
