Investing in Real Estate in Nigeria
Real Estate in Nigeria is an ever-increasing-in-value investment. A few know about this basic fact and have been drinking from its profitable stream. Today, many people are very sceptical about venturing into real estate investment due to a number of factors. However, Expert Properties states that “real estate has many advantages over investing in stocks, bonds or mutual funds.” Certain Nigerians already know this and have since dived into this money-generating sector.
Despite its robust investment benefits, we do not dispute the fact that some are yet to join the train of Real Estate investment in Nigeria because they deem it too costly an investment. Whether you intend investing into Real Estate or looking to investing in future, below various ways below through which this can be achieved:
Buy a rental Property
This is one sure way of making yearly income in Nigeria. Purchase from locations with high rent and also lower tax payment than the rent. An example is buying a property in Lekki, Victoria Island, Ikoyi. However, there are two downsides to owning such a property, one of which is paying a lot of cash upfront before purchase and after.
The other aspect is having to deal with tenants. You will come across different tenants. Some would come up with sympathizing stories. Where you perceive that you are likely to yield to people easily, you may want to outsource these aspects to a property management service to deal with tenants. Rental properties are really lucrative and can serve as a form of semi-passive income.
Practice house hacking
House hacking is a real estate investing strategy which helps investors earn rental income by renting out their primary residence. For example, if you own a duplex, you can rent out one of the units while you stay in the other unit. This is an easy way of making money. It reduces housing cost, helps you learn how to be a landlord easily and helps you grow your wealth passively.
Build a new home on a specification
A specification home is one that is built under speculation that a potential buyer would make a purchase. Many real estate companies in Nigeria are into this. They work with developers to build several types of homes, most of which are in demand and then put it up for sale. Most times, such homes are fully furnished for interested wealthy buyers who do not want to go through the stress of buying home appliances and properties.