Property investment? I will do it when I have 10 million. That’s a mistake, a big mistake! When many people think about property investment, they think it is restricted to the rich and wealthy. This makes them lose out on the perks of real estate in Nigeria.
Real estate in Nigeria is a lucrative investment for many reasons. It serves as a hedge against inflation. Additionally, its constant appreciation is a guaranteed way to get steady, passive income. It could be quite difficult to navigate the real estate market in the beginning phases. In this guide, we will walk you through investment tips you should master as a beginner.
Why Should You Consider Real Estate in Nigeria?
Does it matter if you invest in real estate? Why spend money on property when you are not ready to build? Questions like this are regular when people do not know the benefits of the Nigerian real estate industry. Some of the benefits of investing in the Nigerian real estate Market include:
1. Steady Appreciation
The demand for houses, properties, and office spaces is rising in Nigeria. Considering the fixed supply of property, the prices of property need to rise to balance the equation. For example, the price of Lagos real estate has greatly increased over the past 10 years. This is a similar occurrence across different states in Nigeria. You are guaranteed steady appreciation when you invest in real estate in Nigeria.
2. Easy Way to Diversify Investment Portfolio
If you desire to diversify your investment portfolio, real estate might be your best bet. The industry has several fields, ranging from housing to crowdfunding, residential rentals, and commercial real estate. The numerous investment paths for real estate in Nigeria make it a juicy investment option you should consider.
3. Offers Hedge Against Inflation
The Nigerian economy could be quite unpredictable. If you leave money in cash form, it could depreciate in a matter of weeks or months. One of the safest ways to protect your funds from the impact of inflation is real estate investment. Real estate investment retains and even increases the value of your money with time.
4. Increasing Demand for Property in Nigeria
Nigeria is a growing nation, and this is causing the demand for houses to skyrocket. Cities like Lagos and Abuja are constantly faced with housing deficits as more people migrate into these cities. You could take advantage of such an opening by investing in rental real estate and property sales. Residents will have their needs for housing met, and you will get your profit. Hence, making it a win-win situation.
Top Strategies for Successful Real Estate in Nigeria
Real estate in Nigeria is not an investment you rush into. Without the right strategies, you could fall victim to scammers and even lose your money. When starting your real estate investment journey, pay attention to the following:
Do Your Due Diligence
Before investing in any property, ensure you do your due diligence. You need to be sure that the property is available and the acclaimed seller is authorized to sell the property. One way to probe this is by verifying the authenticity of the land document. Ensure to look out for documents like the Certificate of Occupancy, deed of assignment, and receipts.
Conduct Physical Investigations
Pictures are not enough proof about the legitimacy and availability of a property or building. For all you care, it could be a random video downloaded from the internet. Before making payments, always conduct a physical investigation. If you won’t be available to go physically, have trusted people who can conduct a physical investigation for you.
Set A Realistic Budget
One of the keys to successful real estate investment is having a realistic budget. Before creating a budget, conduct a market survey to discover the price range of properties in your proposed location. Ensure that the budget covers miscellaneous fees like the survey, legal, and agency commissions.
Start Small and Grow
Before investing in high-end cities like Lagos and Abuja, it is better to start with affordable properties in the suburbs. Such investments will help you gain mastery of real estate investment while minimizing the risks you face. As you become more skilled, you can gradually diversify and invest in more properties. At the upskilling phase, you might begin to consider the use of solid property management systems.
Work With Reputable Real Estate Agents
Working with Nigerian real estate agents could save you a lot of mistakes. These agents have years of experience under their belt, and they will help you navigate the market stresslessly. They could also help in verifying the authenticity of the property listing so that you do not get duped.
Common Pitfalls to Avoid
Offers That Are Too Good to Be True
If the property listing seems too good to be true, it is most likely fake. Do not fall victim to fraudsters in a bid to save money. Most times, you end up losing money.
Skipping Legal Documentation
Ensure that all real estate transactions are backed up by legal documentation. If you skip this documentation in an attempt to save time, you may end up wasting more time fighting legal wars. Always insist on having your legal documents before financial transactions occur.
Buying Without Inspection
Never purchase a property without inspecting it. No matter the number of presented media evidence, insist on visiting the property for inspection. If you won’t be able to visit yourself, get a trusted friend or relative to check for you. This will help expose fraud and structural defects that may not be evident in media coverage.
Relying On Unverified Sellers
Do not trust any property seller till they are verified. If they are not the direct owner or registered real estate professionals, treat them as a suspect. Sometimes, such people offer cheaper properties, but most of the time, it’s a bait.
Conclusion
You don’t need hundreds of millions to invest in real estate. You only need the right tips, guidance, and knowledge about the common pitfalls to avoid. In this post, we examined the essentials of real estate in Nigeria and the top strategies for investment.
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