Investing in real estate has gradually become a necessity. This is one form of investment that keeps you out of reach of inflation over the years. Investing in properties or lands is certainly worth it.
In this article, we will be showing you how to invest in real estate in Nigeria. We will also be outlining how you can save money on your real estate investments. This is because a lot may go wrong quickly.
Nigeria has a rapidly growing population. This makes it a top investment location and a ready market for a variety of investments. This includes those in technology, financial services, and real estate.
What is Real Estate Investments?
Buying, managing, and renting out or selling real estate for profit are all aspects of real estate investment. A real estate entrepreneur or investor is someone who makes active or passive real estate investments. To increase the value of their investments, some investors actively develop, upgrade, or remodel real estate.
Things you should do to Invest in Real Estate
1. Make Research
The media, the internet, and other resources are excellent places to go for information if you’re interested in the real estate market. Also feel free to Speak with local, friends and families. Visit Google and appropriate Nigerian property listing websites for real estate. Make search term alerts on Google. You will always be informed in this manner. Before you can engage with it, you must comprehend it. It is significant to remember that finding real estate information in Nigeria needs work on your side, whether you are in the nation or otherwise.
2. Decide your preferred property sector
Choose a sector that will help you more depending on your goals. It could consist of commercial or industrial space, shopping malls, apartments, or offices. For instance, investing in the residential market might not be the best choice if you seek quick returns.
3. Get the correct details
Take caution not to do business with somebody you don’t trust. Consult industry professionals, and a lawyer, and be sure to get everything sorted out, from the obligations of the federal government to the owner’s concerns. Another well-known reality is that real estate con artists are rife in our major cities, trying to sell homes whose owners are away and even including phony title deeds. Beware. Consult with necessary experts, such as surveyors, who will examine the property and provide you with appropriate recommendations.
Employ architects and service engineers when it comes time to start building. Don’t rush things and spend money you don’t need to.
4. Choose rising real estate markets
They might not be experiencing a boom right now, but thanks to infrastructural improvements and convenient access to core business centers, that could soon change. Where a motorway is developed, it eases traffic and the working class tends to move in that direction, making it a noble cause to build high-rises to rent out to them.
Why does this matter? If residential real estate is your area of interest, you should concentrate on the middle class. Nearly half of the middle class in Nigeria (those earning an average monthly salary of N80,000–N150,000) are acquiring items or planning to do so to enhance their life as the years go by. This suggests a significant consumer boom.
5. Know Nigerian property law
As a Nigerian, you have the right to own property. However, the 1978 Land Use Act grants state governments control over land that is located inside their borders. After a lengthy and bureaucratic procedure, they in turn make it available to you. After that, you’ll get a certificate of occupancy so you can start using the land, like selling it or developing it. Your right may also be restricted if you reside outside of your place of origin, which is at best very debatable and may lead to ethnic strife.
6. Investments for the future
Your property of interest may not currently be near any basic infrastructure, but if it is near one of the rapidly growing urban districts, you can never go wrong. You might sell it for millions more than you paid for it a few years from now. Avoid having a narrow perspective.
7. Market your properties online
In this day and age, you cannot afford to ignore the Internet. The Internet is one of the more cost-effective ways to drive visitors to your business after it is up and running, whether it be through having a website or keeping up a social media presence. Online marketing may be your best option if you want to draw buyers or vendors.
The Nigerian real estate market is no different from other real estate markets in that mistakes can be made, thus one must learn patience and good decision-making. Keep in mind that Nigeria is a growing market with enormous potential.