How to invest in real estate in Nigeria
3 Lucrative ways to invest in real estate in Nigeria
Securing a profitable means of income in Nigeria is a feat to achieve. Being able to earn more than enough and then have to use your savings wisely? Not everyone can relate -but Lanre can.
He started 2019 with a newfound motivation to do better for himself by saving. So he devised a workable plan. A few months into the year, he had saved a substantial amount for this purpose. The progress only served to encourage him more. As he doubled his effort, he got an additional source of income and saved more. Nine months into the year, he had substantial savings but with no plans of how to invest the money.
After consulting with his friends, he was advised to invest in real estate. His friend Kunle, directed him to our website (super smart guy). With a few clicks, followed by a detailed conversation with our real estate investment professionals. Lanre was convinced that real estate was the way for him to put his savings to good use. Then came the time to decide. The other questions had been answered; What was he doing? Investing his savings productively, Where was he doing it? Real estate, Who was helping him? Professional consultants from Property Lagos, When was he investing? As soon as he could, to get the investment going by 2020. One question was left, HOW?
Lanre, being a smart young man, asked questions. He did his research and settled on three possible options for his potential real estate investment. Firstly, he can buy a piece of land, develop it and rent it out to tenants. Secondly, he can decide to buy a piece of land, build and sell the build to another person. Thirdly, he can join a group of other real estate investors, put funds together to fund either the first or the second idea. Then share the profit.
All three were fantastic options with enough capital security and legal justifications. Meanwhile, a choice had to be made -the best choice for his personality and availability for dedication to maintenance.
After careful consideration, weighing the advantages and risks, he reached a decision. Last week, Lanre signed the final papers and received the necessary documents proclaiming his ownership of five units in total, spread across three buildings in the center of Lagos. It is pretty amazing, right? Well, you can also achieve this without stress!
Investing in real estate might seem difficult at first glance. But with the right direction from informed sources, you can rest assured that your money is being put to best use.
There are three basic ways of investing in real estate and you can choose any of them, from the highlights below, that best suit your personal preference.
1. Become a landlord
As basic as it seems, owning your property is a way of investing in real estate. Following due process of purchase and making sure the legal documents are valid, the building is yours to do as you will -rent it out or live in it. Either way, it is yours in all the ways that matter. If your savings aren’t enough to outrightly buy a house, you can take out a mortgage to make up for the capital you need and payback at a scheduled rate. To invest in real estate, you can check out our catalogue of available properties on Instagram @propertylagos or the properties on our website
2. Flip properties
This is a real estate investment that involves more professionalism and field experience than simply being a landlord. To flip properties, you buy one, do the necessary remodeling and renovation and then resell it. This is more complex than being a landlord. Because you have to know the market value of a property to be aware of the possibility of it appreciating and getting you a greater profit margin. Also, you need to understand the real estate market for the necessary information on the right time to flip and sell. You can consult with any of the real estate agents at property Lagos to get the best deals on buying and selling properties in the real estate market.
3. Join a group of investors
Lastly, and the most hands-off way to invest in real estate in Nigeria, you can join a group of other real estate investors. Where the other two options involve you buying the property, for this you can simply buy a portion, known as a unit(s), of the property.
You can hire a real estate manager to check on your purchased units, make informed decisions and collect rent for you. Joining a group of investors is similar to buying shares in an active stock market, while you can make money from the investment by renting out the unit space(s) you can also sell it to someone else at a higher price (depending on market value). You can either earn per quarter or annually. This investment opportunity yields an interest of between 15-25% per annum. Thus making it a more viable business than treasury bills or shares.
These three options for real estate investment in Nigeria are the best possible ways to put your capital to effective and profitable use. Contact us today if you need further clarification.