Ultimate Guide to Investing in real estate in Nigeria

Investing in real estate is a valuable investment. With the population of Nigeria growing at a faster pace, with many people migrating to urban areas, it’s important to invest in this sector of the economy. But how do you invest in property? What can you do if you’re interested in investing your money or portfolio assets into properties for leasing out or for development purposes?

This guide will explain the various options that you have when it comes to investing in properties. It will also give you some advice on how to do this effectively.

Types of Real Estate Investments In Nigeria

There are two types of properties that you can invest in Nigeria; these are:

Commercial Properties

Mostly, these are buildings that are used by organizations as offices, factories, malls, or warehouses. These properties tend to have long leases and they’re usually highly profitable because they’re in high demand. This is especially true for properties that are located close to a good transportation network such as ports and airports.

Residential Properties

These are mostly houses that you can purchase directly and then rent out or lease out for income generating purposes. You can also sell them to people when the time is right. You can also buy a residential property, fix it up and sell it at the time you think is most appropriate for you.

Tips on Investing in Properties

It’s important to know your numbers before investing in any type of property. This will help you assess whether or not a particular investment is worthwhile for you. Here are some things that you should consider when assessing potential investments:

1. Property Location

The location of the property will be one of the most important factors to consider when investing because this will help to determine how much rental income that particular property can earn you. There are a lot of things that you need to consider when buying a property, including the location, the size of the property and its location. All these are very important to keep in mind before investing.

2. Price

Most real estate investors buy their properties from individuals who need money to fund their businesses or they buy them from developers who have land that they want to develop into commercial or residential properties. In fact, some investors make a living by purchasing properties and reselling them at an increased price. So you need to know what your prices should be when selling off your property after you’ve finished developing it on rent or own it for yourself.

3. Rent

The rent from a property is an important factor to consider. You should know how much rent you can get for a particular property. If there are high rents in the area and if the market for the properties that you want to buy have good potential, then you can increase your investment in properties that have better rental incomes. If not, then it’s best to invest in property with lower rental incomes because they’re easier to sell off at a higher profit when the time comes because they’ll be more competitive.

4. Risks

This is very important to consider, especially if you’re investing in properties for the first time. Investing in real estate involves risks like incurring property depreciation over time and it also involves collecting rents from tenants and property management companies every month. You need to be careful about these risks because you don’t know whether or not the properties will continue increasing in value over time because of growing demand.

5. Cashflow

If you’re investing in properties to earn rental income, then cashflow is a very important thing to keep in mind. The amount of money that you’ll make every month after expenses will be the key factor that determines whether or not a particular property investment is worthwhile for you. The more money you’ll make, the better it will be for your investments.

How To Avoid Buying Fraudulent Properties

There are some times where the location of the property doesn’t match with its present condition as advertised. Since this is a situation that you don’t want to experience, it’s important to know how to deal with fraudulent properties before you buy them.

Here are some things that you can do to avoid buying fraudulent properties:

1. Ask for proof of the property’s condition

The best thing that you can do when buying any type of property is always ask for proof of the property’s condition and the work that needs to be done on it. This way, you’ll know whether or not the property has been fully developed by the developer or not. If so, then you should know that there’s no need for you to go through with your investment because it’s probably a fraudulent one anyway.

2. Ask for proof of the property’s location

Make sure that you have a proper survey of both the land and the building that you want to invest in before buying it. This way, you’ll know whether or not the developer is lying about its location and if it really is located in an area where there are high rents.

3. Check out the records of title and ownership

If it’s a freehold property, then you should check out its records of title and ownership from the relevant authorities in that region or state. You can do this by checking them out from your local government offices or any other relevant organizational authority. This way, you’ll know whether or not the property is owned by a legit developer and whether or not it’s worth investing in.

4. Ask for a proper listing contract

If the developer has a correct listing contract with other property owners, then you’ll know that this is probably a legitimate deal and that there’s no need for you to go through with your investment because it’s fraudulent or illegal.

5. Check if the developer has any liens on the property

This means that there are other creditors who have claims against the property including those from lenders and mortgage companies who haven’t been paid. If this is the case, then you’ll know that the property will have no value because its owner hasn’t paid for any of its debts.

Conclusion:

While there are many options when it comes to investing in properties and commercial buildings, the best method of doing this is buying them from investors who need money to fund their businesses or directly from developers who have lots of land they want developed into commercial and residential properties.