Real estate is simply land along with all natural and man-made properties attached to it. You must have heard it from someone or somewhere that real estate is one of the best investments you can make as a Nigerian. Well, it isn’t a lie. Properties are always worth investing as people will always need them. Furthermore, there are many potential house owners in Nigeria since the percentage of house owners in the country is relatively low, less than 40%. If you’re interested, I’ll be discussing tips on how to invest in real estate in Nigeria in this article.
1. Do Your Research
When starting something new, the first thing to do is your homework. You must understand what you’re getting into before you begin. There are several sources to help you understand how the real estate industry works and this is what you should look for. The internet, for example, is a great research source and Google is there to help you navigate it. However, the key things you need to know that particularly relates to the Nigerian market may not be so public. You might need to consult experts to get this information. Hence, you may need to undergo a sort of real estate training program.
2. Pick A Real Estate Niche
If you don’t know, there are several real estate niches or property markets. For example, you may choose to invest in residential properties, industrial properties, retail properties, etc. Explaining them; residential properties have to do with land where houses are built for people to live; industrial properties have to do with sites and buildings that could be used by companies and industries; retail properties have to do with sites and buildings that are ideal for retail (buying and selling) business. Once you’ve done your research properly, picking the right real estate niche won’t be a problem. Nevertheless, don’t always be moved by promised profits.
3. Scout For Top Real Estate Environments
This involves locating the real estate property you want to invest in. It’s common knowledge that the price of properties differ in different parts of Nigeria. For example, a 2 bedroom flat in Abuja may cost higher than the same 2 bedroom flat in Sokoto. Similarly, a real estate property located in a state like Lagos will be ideal for retail due to the high commercial activities in the state, and so on. However, what’s important is identifying environments where people are willing to purchase properties. Also, you should consider the price to know if your target customers in that area can afford the property when it’s time to sell.
4. Source Your Capital
Once you’ve identified the property, it’s time to purchase it. If you have the money, then there’s nothing much to say. However, real estate properties can be very expensive, a huge majority of them cost multiple millions. If you don’t have the money, you need to look for ways to source the capital if you really want to invest in real estate. This is because if you choose to delay, the property is likely to appreciate in value which means it’ll cost higher. You can source capital from banks and other financial institutions so long as you have a good backing.
5. Make The Deals
A lot of real estate investors have lost money in wrong deals. Just like every other investment, real estate requires carefulness when making deals to ensure you do it right. There are many property scammers who are ready to make you lose your hard earned cash. You’ll need all the help you can get from real estate and property experts, lawyers and other legal practitioners. Read and digest every detail in the contract or agreement you’re meant to sign to ensure they all meet your interest. Depending on the property, examine the land details, construction details, service details, etc. Never make a real estate deal in a haste.
6. Follow The Law
Your investment won’t survive in Nigeria if it’s not in accordance with the Nigerian law. As a Nigerian citizen, you have every right to own a property in your country but the government has certain rules pertaining to land and borders in the country. The process of acquiring a certificate of occupancy in Nigeria is a bureaucratic one and you need to work with a lawyer to ensure you don’t make any mistake. If you don’t follow the law, your right to own a property could be denied and if you have already put in your money, you’ll lose everything.
7. Consider Future Worth
If you want to be a long term investor, you must consider future worth. In this case, it’s ideal to purchase just a land without much attachments to it. The real estate property you may be interested in buying may not be worth so much because of its location. However, developments are always happening. In future to come, an infrastructure may be established closed to it that’ll sky-rocket its price. Take for example, the Akwa Ibom stadium finished in 2014; the price of buildings around the stadium massively appreciated after its construction as it became a largely visited area.
8. Promote Your Property
If you’re a realtor who invests in real estate to sell others’ property, you will need to pay large attention to promotion. In this digital age, you’ll be “dulling” if you don’t make use of online channels to promote the properties you sell. Online marketing is changing the real estate industry as it allows realtors to pitch their properties to a higher number of potential customers. You can run online ads or seek help from influencers and popular accounts on social media platforms like Twitter and Instagram – Nigerians make use of these social media platforms a lot.
Bottom Line
These tips on how to invest in real estate in Nigeria will help you set the ball rolling if you’re interested in the real estate industry. However, there’s so much to learn if you really want to profit. The good thing is so many places in Nigeria are still developing. You just have to identify these opportunities and take advantage of them.