Real estate investment is not just a component of the wealth puzzle, it stands head and shoulders above the rest. Investment is frequently stated to be the best way to create wealth. Although real estate investment is still arguably one of Nigeria’s undiscovered areas of wealth creation, it is a surefire way to accumulate riches.
It is important to remember, however, that while the real estate sector in Nigeria is a fast-growing one with several possibilities to generate money, it has its drawbacks. Here are some real estate investing tips for beginners who want to invest in Lagos, Nigeria:
Have a Plan
In the real estate sector, having a plan can help you customise your goals and expectations. Just as you wouldn’t take a road trip across the nation without one, there’s no need to set out for financial freedom without a map. This should keep you motivated and on track at all times.
If you’re interested in learning more about the real estate market, there are a number of resources available: the mainstream media – both online and in person; speaking with locals or experts like me; Google searches, and so on. You can also set up Google alerts, this way, you’ll always be up to date.
When it comes to investing in real estate, location is crucial. You don’t want to buy properties in a neighbourhood just because it’s cheap. Check the market value, the area, and what the place has to offer. The type of rental you’re looking for can help you narrow down your search. Examine the competition to see if the property you’ve chosen is in a good location for the job, also consider the community, closeness to major attractions, culture while renting a home or a holiday rental. Check out the population, parking, and demography of the region before renting a company.
After selecting the best location to invest, the next factor to consider is the value-affecting factor. If you’re considering investing in real estate, you should be aware of how various characteristics of the property might affect its worth. It’s crucial to know, for example, if the property is close to public transportation or if it has additional square footage.
Getting The Right Agent
You might be astonished by the number of real estate agents in Nigerian cities like Lagos. Start by asking friends and relatives for suggestions to ensure you pick a good one. Before making yiour final decision, do some research – look at agent websites and read internet reviews. Inquire about their experience and customer service when dealing with potential agents, if they appear reluctant or unsure, move on to someone else.
Purchase At A Discount
Investing in real estate is comparable and much more to buying a dividend-paying stock. The return on investment is determined by the cost of the commodity. However, you must consider the investment’s return. You can buy cheap property in a developing/undeveloped neighbourhood for a low price and resell later once the place starts developing, just like the new Lagos, Ibeju Lekki. The best time to buy a property that you want to resell in the future is now, and with the ongoing projects in the area, most of the properties will have a 100% and above ROI in a few years. You purchase low-cost items, save money, and get more as the year progresses.
Understand the Real Estate Market
Understanding your local real estate market is one of the best methods to avoid complications when investing in real estate, and will assist you in determining the value of a potential investment property. Know how much a typical property in a neighbourhood is worth per square foot and how much rent you would be able to charge for a certain investment property. In an average/rich neighbourhood, for example, never lower the number of bedrooms or the standard of a building. You shouldn’t limit the size of the closet or the master bath to fit in a hot tub that only a few people in the neighbourhood would use. If there is minimal demand for a pool, don’t pull out a good yard to install one, and keep inflation in mind. If you put in the time and effort to properly understand your local real estate market and know what the masses want, you’ll have a far better chance of succeeding in real estate investment.
Investing in Nigeria’s real estate sector has grown in popularity over the last several years and has become a prominent investment venture. Regardless of the economic slump, the real estate business in Nigeria is currently growing, and people are making millions in it. It may be considered a real money-spinner. One of the best things about the Nigerian real estate market is that the investment prospects are so diversified that there is something for everyone, and as you progress in the industry, you can also extend your portfolio.