To buy or own a piece of real estate in Nigeria is an investment strategy that is known to be lucrative, offering income in the form of rent-and-appreciation- when you sell an appreciated property at a profit. In addition, buying real estate in Nigeria might still be considered nonlucrative, if not done properly. Generally speaking, owning or buying a piece of real estate in Nigeria is not an easy task and the major aim of owning one is to create long-term wealth. This why many have fallen victim to real estate scams either from families, friends or from agents or real estate companies.
Investment Opportunities of buying real estate in Nigeria
- Rental Income: By allowing another person or company to use the property in order to earn a certain income is one of the major benefits of investing in real estate in Nigeria. Residential rental property is one of the common ways to increase your investment portfolio when investing in Nigeria real estate. Although, location plays a vital role when investing in rental property. Location with fast-growing employment opportunities will attract more tenants. Also, locations with close proximity to amenities such as recreational parks, restaurants, cinemas, malls, and so on, affect rental income positively. Despite the fact that rental property has a huge advantage, so also is the problem of the potential damage of property from the tenant. Asides, the residential rental property being one of the common ways to increase your investment portfolio, commercial rental property should not be left untapped
- Real estate flipping: A process of buying real estate and reselling so as to make a profit. Real estate flipping remains one of the biggest potentials to make more profit but it can be time-consuming. Real estate flipping can be of two types; land flipping or house flipping. Land flipping is a type of real estate investment that involves buying lands at a very low price and selling at a higher price to make a profit. House flipping on the other hand implies buying a piece of real estate at a discounted price, improving it in some way, and then selling it for profit. To be a successful flipper of real estate, you need to invest or buy real estate in locations that have good investment prospects. The Lekki-Epe expressway is seen to be the best location when investing because of the developments such as the Dangote refinery, lekki free trade zone which is meant to reduce trade barriers between Nigeria and other countries, the Dangote Jetty projects, and many more
- Open space leasing: In open space leasing, you buy land in a good location, while you wait for the property to appreciate, you lease it out to people for temporary use. Open space leasing is another better way to make cash flow in real estate in Nigeria. Usually, this type of land is being leased to churches, mechanics, or other businesses. The benefit of this is that you tend to get rental income before you sell the land.
- Property Development: This is the type of real estate investment in Nigeria that requires huge capital to start because it involves acquiring undeveloped land, developing buildings or houses on it, and selling to make a profit. It is vital to ensure that development cost is far out-weighed the asking price of the property after it has been developed. Before you go ahead to invest in property development in Nigeria, you might need to know more about the Nigeria real estate market .