Real estate investment is as old as time. Despite the misconceptions of fading and unprofitability, real estate remains a goldmine in Nigeria and beyond. According to OwnAHome, Nigeria is a country with over 200 million people and has a housing deficit of a 17-21million. This means that there is a growing need for people to have homes.
Of course, I know there are people shacking up in wooden or raffia houses, but a majority will need decent homes to live in. Whether they buy these houses or rent them, they get to transfer money to some people. And who are these people? Real estate investors. It count be the owner of the house or the investors. Whichever way, those involved in the process get paid.
This posits that no matter how hard things get economically, real estate investors and agents have a slim chance of going out of business. Want to know more about this gold and how to mine it? In this article, I will be sharing some tips you need to know about investing in real estate.
The first thing you should do before venturing into any business or investment is to research the market. You can’t be left in oblivion about the field you are going into. The same applies to real estate investment. To start, you must research other real estate companies and investors.
Identify what they are getting wrong or right. It will enable you to know what to invest in and how to go about it. Some real estate companies you can research are Landwey, Gracias Global, etc. Find out about these companies and investors that invest with them. It will go a long way to giving you direction.
Choose an investment strategy
In real estate, there are majorly 4 types of investment strategies. The first is rentals. Here, you buy or build a property for the sole aim of renting it out to people, monthly or yearly. This is probably the most common amongst them. The second is development. For this strategy, you build a house yourself and then sell at an interest. This is different from the third, flipping, which involves buying land or an already developed house and selling at an interest. The fourth is REITS, which is a trust that pools funds from individual investors. Investigate these strategies and identify the one that works best for you.
Understand laws and regulations
It is important that you understand the laws guiding the land and real estate generally. This knowledge will help you operate without limitations. For instance, the Land Use Act provides that the government has the right over land in each territory, and to sign an agreement, the government should be aware.
This means you will need some certifications from the government. Be fully aware of the documentation needed, such as the C of O (certificate of occupancy, valid for 99years), governor’s consent, excision and gazette. Having these in place guarantees that your ownership and real estate business is legal and genuine.
Choose the right location
Whether you are a developer or an investor, choosing the right location is everything. There are certain areas you should focus on, as that will build or destroy your real estate business. Take advantage of government residential areas and urban areas. In Lagos, for instance, you should focus on areas like Lekki. Although it might be more expensive in the beginning, if you play your cards right, your ROI will be mindblowing. Simply put, follow where the money is.
You could also consider areas that are fast developing, buy, build or invest at a cheap rate, and get ready to reap great returns in no time. Taking advantage of payment plans is also a way to go. This will give you the ease of payment.Featured Image Source: Connect Nigeria
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