Real Estate financing in Nigeria is one among the trusted avenues for wealth creation and will continue to be. The real estate market makes trillions of dollars in yearly income. While it is a means of creating wealth, it is also helps you preserve the wealth. In this article, we will discuss, extensively on how to generate huge money from real estate investment. Also check beginners’ guide on how to start real estate business.
What is Real Estate?
Real estate involves buildings, lands and the natural resources of the properties involved. Therefore, real estate business is renting, buying or selling of properties.
Why you should invest in real estate
Below are the reasons you should invest in real estate business;
1. It is a good business opportunity
The real estate market is a consistently growing industry, especially in a developing country like Nigeria. When you take into account the explosively growing population of city dwellers in the country, you will realize the need for the numbers of homes or houses to be increased.
The absence of inexpensive housing is a big problem facing Nigeria. The housing shortage in Nigeria is astronomically high. Just a few years ago, in 2016, it was reported that only a paltry 25% of Nigerians are home owners. This was disclosed by the Centre for Affordable Housing in Africa.
2. Provides Capital Increment
The cost of a home is based on the situation in the real estate market. People practice real estate either by selling properties or renting them out to others for a fee. If you are looking at a future of convenience for yourself then, investing in real estate should be a no brainer if you have the capacity to be an investor.
Major real estate types in Nigeria
- Marketable real estate: marketable or commercial real estate is a property developed for business purpose only. Examples are shopping malls, hotels and restaurants.
- Residential real estate: this is the type of property built for people to rent and live in. it is the most common form of real estate.
- Industrial real estate: this involved properties used by organisations. It involves warehouses, factories, business parks, etc.
Tips to make money from real estate investment
1. First, gather information on real estate. Check the newspapers, TV and radio adverts, as well as the internet for investment opportunities. Ensure you do due diligence to avoid scammers.
- Choose the type of real estate that aligns with your goals for going into the real estate business. Pick the area that will give you the economic value you desire.
Identify the marketing that has good potentials. You really have to go into real estate for quick returns only.
Ensure you analyze and understand your financial capabilities before delving into real estate business. This will help you remain financially stable while you wait for your returns.
Ensure that all your business operations and engagements are within the dictates of the laws that regulate the real estate market.
Always be hopeful for the future. Whether or not there are infrastructures where your property is, learn to be patient.
To become a successful real estate player, it is important you hold tight the points highlighted above, among other useful things.