Five Smart Real Estate Investment in Nigeria in 2022 - Landshop

Five Smart Real Estate Investment in Nigeria in 2022

Five Smart Real Estate Investment in Nigeria in 2022

Are you ready to become an investor in the real estate industry? Then you need to know the smart real estate investment in Nigeria that you can consider in 2021 and the years beyond. When it comes to investing in real estate, the benefits outweigh the disadvantages.

Five Smart Real Estate Investment in Nigeria in 2022

There are several ways to invest in real estate in Nigeria. As a beginner, exploring all these options at once will limit your chances of success. As such, we have prepared five of the best real estate investment options you can consider. Starting with the listed options will help you maximize your income within a short period.

Real estate: an intelligent investment option

One of the intelligent financial decisions you can make in Nigeria is to invest in the real estate industry. This industry is fast-growing, and it has high potentials to help you increase your income.

Investing in real estate is also easy. It requires no formal education. All you need is the willingness to learn and earn. So let’s talk about some of the smart real estate investments in Nigeria that you can consider.

Smart real estate investment in 2021

Below are five of the best real estate investment options available for you:

  1. Rental Property

Buying a rental property is one of the bravest investment options you have. There are no age limitations for purchasing a rental property. Irrespective of your location in Nigeria, renting homes, office spaces, and shop spaces are commonplace.

Many build houses, shops, and other structures not for personal use. Their goal is to rent them out to others. One of the perks of having a rental property is that you earn periodically through rent payment. You can decide to collect the rent weekly, monthly or yearly. In major cities like Lagos and Ibadan, property owners collect rent for 2 to 3 years at the initial stage.

Another form of renting that is popular In Nigeria is House Hacking. House hacking involves sharing your residential property with others. You can rent a room out or an entire block. House hacking is prominent among Duplex owners since they cannot stay in all the buildings themselves. As such, they rent some of the apartments out.

You can buy a whole property and rent it all out. Alternatively, you can stay in a unit and rent the other part of the building out. Either way, you earn on such investments for as long as they exist.

  1. House Flipping

House flipping is another sound investment option in real estate. Before you can flip a property, you need to have more than a basic understanding of the real estate industry. You need to understand property valuation, marketing and have a team for renovating your properties.

Property flipping involves buying a property and renovating the property. In the end, you sell the property for more profits. House flippers are not interested in keeping a property. Their goal is to earn a quick profit on a property, and this they do by selling the property immediately after they complete its renovation.

Smartness is a requirement for property flippers. The longer you hold on to a property after renovation, the lower your chances of getting the maximum return on your investment. That is why you need to up your marketing skills before you enter the property flipping business.

  1. Real Estate Investment Trusts (REITs)

Another form of investment is the Real Estate Investment Trusts (REITs). In Nigeria, the Security and Exchange Commission (SEC) regulates the activities of the REITs. Such investments involve buying a unit of property within several units of properties.

For example, an investment group can own 50 blocks of shops in a popular location in Lagos. As a single investor, you can own a unit or more of the shops. The group will manage activities like advertising vacancies, speaking with tenants, and renting the property out.

The investment group takes a fraction of the rent. The remaining fund belongs to you after settling tax requirements. The good part is that you don’t have to worry about interacting with tenants or managing the property.

  1. Property development

Property development is similar to flipping, but the methods and processes are different. If you have enough capital and want to increase your income, this is the best option in the real estate industry for you.

You can get properties in developed areas in a city. You then redesign the property before selling for more profits. Unlike flipping, property development takes more time. The more time you spend on developing the property, the higher your return on the property.

If you’re financially buoyant, developing properties is an excellent option.

  1. Online Real Estate Platforms

If you’re not financially buoyant at the moment but want to invest in real estate, this is an excellent option for you. Online real estate platforms allow you to join other investors on big deals. A real estate developer may have a project they are hoping to develop. Ten investors may come together and invest different amounts in the project.

The entire process takes place online, and you earn a significant amount on your investment over a short time. Here, you don’t need to own the property; you only invest with real estate developers.

Conclusion

These are five of the smart real estate investments in Nigeria. Choosing any of these options in 2021 and beyond will lead you to financial freedom. Irrespective of how much you own, there is always a way to invest in real estate. To begin, speak with experts at Landshop today.

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