You may have wondered how to become a Real estate investor in Nigeria, you may have as well, over the years, been studying about real Estate investments and how it’s been done online, well unfortunately most things you have read in foreign journals or followed in webinars are not operationally possible in Nigeria. This article tries to explain in simple terms five simple ways you can begin your investment walk in real estate in Nigeria.
- 1. Try to Understand what Real Estate really means:
Investopeadia defined Real Estate as:
Real estate is property comprised of land and the buildings on it, as well as the natural resources of the land, including uncultivated flora and fauna, farmed crops and livestock, water and mineral deposits. Although media often refers to the “real estate market,” from the perspective of residential living, real estate can be grouped into three broad categories based on its use: residential, commercial and industrial. Examples of residential real estate include undeveloped land, houses, condominiums and town houses; examples of commercial real estate are office buildings, warehouses and retail store buildings; and examples of industrial real estate include factories, mines and farms.
Investment in Properties is a wonderful exercise which you’d hardly ever regret doing if done the right way. Buying, rental and selling of Homes, Lands, or Landed property, Rocks, dilapidated building and re-investment are all the activities called real estate businesses. A smart Real Estate investor, observes, and researches an emerging regions and draws an investment forecast and decides whether investment process should be initiated or not in the region or place.
- Buy REITs
Reits, or real estate investment trusts, allow you to invest in real estate without the physical real estate. Often compared to mutual funds, they’re companies that own commercial real estate such as office buildings, retail spaces, apartments and hotels. REITs tend to pay high dividends, which makes them a good investment in retirement. Investors who don’t need or want the regular income can automatically reinvest those dividends to grow their investment further. As an investment scheme, REITs/REICs can either be publicly traded on the stock exchange or owned by private investors. Ambicorp Real Estate company possess the expertise to help you with more Information about Buying REITs.
3 Take advantage of Established Online Real Estate Companies.
Real Estate Industry is large and Information spread across easily especially among industry experts, One of the easiest ways of Investing in Real Estate in Nigeria is to liaise with a reputable online Real Estate company who networks property owners with investors, developers etc, connect borrowers to investors willing to lend them money for various personal needs, such as a wedding or home renovation
These platforms connect real estate developers to investors who want to finance projects, either through debt or equity. Investors hope to receive monthly or quarterly distributions in exchange for taking on a significant amount of risk and paying a fee to the platform. Like many real estate investments, these are speculative and illiquid.
The bump is that you may need money to make money. Many of these platforms are open only to accredited investors, defined by the Nigerian Securities and Exchange Commission as people who’ve earned income in few millions in each of the last two years or have a net worth of 100 million or more, not including a primary residence.
- RENOVATE AND RE-SELL PROPERTIES
Some people have properties in highbrow areas like Ikeja, GRA in Lagos, This properties have outlived their resilience ,The houses are dumb looking already, yet they stick to living in It, an expert advice will be to renovate the property and sell it off, but before selling it off, make sure you already have other properties you are just waiting for funds to pay up for, because it won’t be advisable to sell and start looking for a home or land to buy,
You may try property trading. It’s not necessary to live at a spot forever; buy to sell is real Estate.
- Form Real Estate Investment Groups
Instead of investing your club money in mere mutual support, why not invest in properties. There are lots of properties all around Nigeria in both developed and emerging areas, contact a real estate professional to guide you on how best to invest in properties.