As true as it is that real estate is a very resourceful and secure investment, it must be done right. There has to be some thought processing and research before making a decision on what type to invest in, and how to go about it. When real estate investment is properly done, or when you take smart advantage of certain real estate investments, you can recover double the invested capital in an amazingly short period of time. Here are some hints you should bear in mind when you’re ready to invest.
- Know the Required Cost
Before you dash into any real estate investment, be sure to find out everything about the cost it will take to achieve, so you don’t run short on resources halfway and end up stuck. This is especially for those who want to buy and develop properties, or build one from scratch. Make sure you’re financially equipped to finish what you’re setting out to do so profits can start rolling in as soon as possible.
The location for real estate investment is very crucial. Once you miss the location card, you can cut down your profit by a large margin. If you’re looking at investing in lands, how long do you intend to allow for it to appreciate? You can buy a cheaper land in a poorly developed location if you intend to leave it for several years; while if you plan on selling quickly, you should get a good location in a developed area where land purchase is on the increase. If you’re selling or renting buildings, of course you should also look for locations that are in high demand.
- Invest futuristically
If you’re stepping into the kind of real estate investment that involves housing for rental purposes (which is one of the most thriving forms of real estate in Nigeria,) it’s always advisable to invest with the future in mind. Raise your housing in Lagos or any other city with a good deal of adaptability so you can cheaply improve on them, and if a time comes when you’d like to sell, you can do so while making your profits big.
- Originality and Legality
In Nigeria especially, it’s not strange to hear about one land dispute or the other arising from fake or illegal transactions. Nobody wants to find themselves in such ugly scenario so be sure to verify and re-verify any real estate you intend investing in. You should definitely take legal backup along too.
- Property Development
This kind of real estate investment entails buying buildings and then renovating them to meet high and modern standards for rental or selling purposes. This often requires huge capital but the returns are always at least a 100%. Like established in the location tip above, you need to get a very good location for this to fly.
- Land Flipping
This is a terminology in real estate investment that refers to buying a landed property and reselling it almost immediately with stunning returns. It is not very common or popular in Nigeria, but it exists. It takes a good knowledge of how to buy and resell potential lands to thrive here. There’s a story of a realtor who resold a land four days after he bought it with profits of over 250%! It’s really as easy as it sounds if you know your onions well.
The insurance scheme is gradually taking a better shape in Nigeria. If you own real estate housings, it would be a great idea to seek financial advice on a reliable insurance model and company (maybe with one of the known banks,) to insure your property. In the advent that some damage occurs, you would have a backup plan you can fall to.