02 Dec 2018
Top Simple Ways To Invest In Real Estate In Nigeria
Investing in real estate is more than just finding a place to call home. Investing in the real estate sector in Nigeria has become increasingly popular over the last couple of years and has become a common investment thread.
In Nigeria, the real estate business is truly lucrative and profitable, it has to be Real Estate. The Real Estate sector is currently booming in Nigeria and people are making millions in it, irrespective of the economic downturn, it can be seen as a real money spinner.
One thing very good about real estate business in Nigeria is that the investment opportunities it presents are so diverse, there is something in it for everyone and you grow in the business, you can also expand your portfolio.
Although the real estate market has plenty of opportunities for making huge profits, buying and owning real estate is a lot more complicated than investing in stocks. In this article, we’ll go beyond buying a home and introduce you to real estate as an investment.
Here are some of the ways you can see real estate as an investment that could bring in huge returns and not just the buying of a dream home for you and your family alone.
The Gift of Rental Properties
Investing in rental properties is as old as the practice of land ownership. You buy a property or properties and then rent it out to tenants. You become the landlord responsible for paying the costs of maintaining the property.
Usually, you would charge enough as rent to cover all of the costs associated with owning a rental property as well as a profit portion, hence the need to do enough research about the rental value been charged by landlords in the area, who have the same property. Owning a rental property automatically leaves you having a fixed rental income yearly or monthly. Generally, properties appreciate in value over time, leaving the landlord with a more valuable asset.
There are, of course, blemishes on the face of what seems like an ideal investment as you can end up with a bad tenant who could damage the property or, worse still, ends up having no tenant at all. This could leave you with a negative monthly cash flow.
There is also the matter of finding the right property. You will want to pick an area that is conducive for people to live in, also, choose a place that people will love to rent.