Real Estate is a lucrative industry that has become popular over the years and despite the current economic situation in Nigeria, the real estate industry is booming so much that it was not affected by the pandemic. The real estate sector is a safe and secure one and if you are thinking of going into real estate in 2021, you can be assured that there is great profit in doing so.
Is Real Estate profitable in Nigeria?
Real Estate is a very profitable business in Nigeria as it is a very versatile one. The investment opportunities that are available in real estate are numerous and this is what makes it very profitable. There are so many ways to make money in real estate so it depends on the areas you want to focus on.
How Do Real Estate Owners Make Money?
Real Estate owners make money from quite a number of ways and this is why it is very profitable. Some channels through which real estate owners make money are:
Property appreciation: When real estate owners buy property for a certain amount, there is a high tendency for that land to cost more as time goes by. It is possible to end up selling it about twice the amount at which it was bought. This way they can get their profit from the sale of the property that increased in value.
Property/Land Development: As population rate increases, there is the need for more housing provisions in cities and towns. Real estate owners can purchase properties and develop them turning them into housing schemes that people would partake of. This also applies to commercial buildings and ventures.
Real Estate Agent: As a real estate agent you can make money from helping people buy or sell their land or property. You can get a good commission from doing this.
Land Flipping: This involves acquiring properties that are run down and then repairing them so you can sell at a much higher price than you bought it. This is a very profitable means of making money in real estate especially when these properties are positioned in good locations. At MKH, we have estates that are strategically positioned to be best channels for profitable real estate investments.
Rent: The need for shelter is one of the basic necessities of life. Renting out your property can be a very good way to make money from real estate. You can rent out your property for residential purposes or commercial purposes.
Is it cheaper to build or buy a house in Nigeria?
If you’re thinking of investing in real estate via rental income, some questions would come up in the course of taking your decision. There are various factors to take into consideration when deciding on whether to build or buy a house.
In building a house, you can decide exactly on how you want it to be. It might not cost much to maintain especially if you did due diligence of getting quality materials when building. On the other hand, building a house in Nigeria could be more expensive as there are so many things to look out for, a major one being the high cost of building materials.
How can I buy a house in Lagos?
Real Estate in Lagos is very lucrative and there are so many opportunities open to whoever is willing to maximize them. Buying a house in Lagos should not be a herculean task if you are able to make all the necessary inquiries and take precautions.
It is important that you follow the necessary steps such as having a budget and deciding on a very strategic location for your house. You must know about the documents that are required, investigate the sellers and the property you are about to acquire so you don’t lose your money to fraudsters.
If you have done all these and everything is as it should be, then you can begin negotiation on the property price.
Check out this post on Property Inspection Checklist For Nigerians
How can I invest in the Real estate business in Nigeria?
Investing in real estate in Nigeria is diverse and there is something for everyone who is interested. You can invest in real estate through renting out your property to tenants. This in itself requires proper market research as your rent charge should be able to cover some maintenance fees and your profit.
Another profitable way of investing in real estate is buying land and reselling at a higher rate. This promises a good profit margin and is practiced by many people in real estate.
Other investment opportunities in real estate include investing in property development, land surveying or by becoming a realtor. You can also invest in Real Estate Investment trusts (REITs), that has to do with mutual funds. The trust scheme pulls the capital of many investors who eventually earn dividends without doing the work themselves.
Real estate is a reliable source of income and it does not require special skills or qualification. We can provide you with competent and trusted agents that would help you through the process of getting into real estate. You can reach out to us by clicking here so we can guide you on how to get maximum returns on your real estate investments.