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If you’d rather go for something that generates money on the regular, you have several options to take a pick from. In this article, we’ll round up 7 such options, so you’ll have a better idea as to which one (or ones) you would like to invest in. Here they are:
Short-LetShort-let apartments are furnished dwelling places that are rented out for days or weeks. They often exist as homely alternatives to hotels and are sought after by tourists or persons on business trips. We have seen a multiplication of this type of property across Nigeria’s major cities in the past few years, partly due to the domestication of the Airbnb model. In Lagos, short renters pay anywhere between ₦20,000 and ₦300,000 per day. You may build your short-let apartment from scratch, purchase one, or rent to sublet.
Longer-Term Residential Rental PropertyThis is the better-known type of residential rental arrangement in Nigeria. In this case, tenants rent a flat, bungalow, or other type of property, and pay for their stay there on an annual or monthly basis. Investing in this sort of real estate allows you to collect payments on a fairly regular basis, especially if you have multiple tenants paying at various times of the year.
ShopsAnother idea would be to rent out shops to merchants who will sell their products and services in them. The returns you could realize from this type of investment depend on several factors, including the location of the shops and the type of businesses they host. Ideally, you’ll want your shops to be in a busy part of town, perhaps an established or quickly emerging marketplace. If you have the funds, you may even purchase space in a mall and rent it out to merchants.
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Office BuildingThe typical formal sector business needs a place to call its office. You can earn a steady income from corporate organizations of this type by providing them with working space. Office buildings may take one of several forms. They could house a single business or a couple at most; or they could consist of several floors, each being home to multiple commercial establishments. If your office blocks are situated in a recognized business district, you stand a chance of reaping significant returns from them in rent.
Event CenterHow about giving people, businesses and non-commercial organizations the halls they need to have their meetings, celebrations, and conferences? That’s what event centre owners do, and many of them consistently smile to the bank via this means. It may cost you a few million naira to construct a decent event centre, but you’ll quickly recoup your investments and turn profitable if your hall is located in or close to the centre of town.
WarehouseIndustrial concerns need a place to store their goods. This is true for local manufacturers, larger wholesale businesses, and big-time importers. Many of these businesses are willing to pay a great deal of money just to secure safe shelter for their wares. And you’ll make a fair bit consistently by meeting this need. A good site for your warehouse would be close to a major transportation route, which will allow your renters to easily move their goods to their preferred destinations.
Farmland for RentDon’t let your fallow land go to waste. If you aren’t ready to build on it yet, you can rent it out to farmers who need a place to grow their crops or rear their livestock. They will pay you a monthly or annual fee for using your property, and could even share some of the produce from the land with you.
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Final WordsWe have laid out 7 real estate investments that guarantee you steady cash flow. It’s up to you to choose one (or more) that suits you. Be sure to review potential locations for viability and screen tenants before letting them rent your property. When you do these things, you’ll further raise your chances of raking in fine sums regularly from your property.
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