27/08/2018
Investing in real estate is more than just finding a place to call home
Investing in the real estate sector in Nigeria has become increasingly popular over the last couple of years and has become a common investment thread.
In Lagos and Nigeria at large property business is truly lucrative and
profitable and people are making millions in it, irrespective of the economic downturn, it can be seen as a real money spinner.
One thing very good about property business in Lagos Nigeria is that
the investment opportunities is diverse , there is something in it for everyone to grow in the business, you can also expand your portfolio.
Although the real estate market has plenty of opportunities for
making huge profits, buying and owning properties is more complicated than investing in stocks. In this article, I can go beyond buying a home and introduce you to real estate as an investment.
Here are some of the ways you can see property business as an investment that could bring in huge returns and not just the buying of a dream home for you and your family alone.
The Gift of Rental Properties
Investing in rental properties is as old as the practice of land ownership. You buy a property or properties and then rent it out to tenants. You become the landlord responsible for paying the costs of maintaining the property.
Usually, you would charge enough as rent to cover all of the costs associated with owning a rental property as well as a profit portion,
hence the need to do enough research about the rental value been charged by landlords in the area, who have the same property.
Owning a rental property automatically leaves you having a fixed rental income yearly or monthly.
Generally, properties appreciate in value over time, leaving the landlord with a more valuable asset.
There are, of course, blemishes on the face of what seems like an ideal investment as you can end up with a bad tenant who could damage the property or, worse still, or end up having no tenant at all.
This could leave you with a negative monthly cash flow.
There is also the matter of finding the right property. You will want to pick an area that is conducive for people to live in, also, choose a place that people will love to rent.
Perhaps the biggest difference between a rental property and other investments is the amount of time and work you have to devote to maintaining your investment.
When you buy a stock, it simply sits in your brokerage account and,
hopefully, increases in value. But If you invest in a rental property,
there are many responsibilities that come along with being a landlord.
You have to be actively involved in the maintenance and running of your property.
However, if it gets too much, you can employ the services of a professional manager which doesn’t come free of charge.
Housing properties can be sold fairly quickly to raise cash or to take advantage of other investment opportunities, also allows investors into non-residential investments such as malls or office buildings and are highly liquid. In other words, you won’t need a realtor to help you
cash out your investment
Buying of land and reselling quickly for a profit.
This is one of the smartest investment and it requires little or no effort whatsoever. It basically involves your money as well as an in-depth knowledge of land ownership and the buying and selling process,
you are good to go.
You would have to have a substantial amount of money however if you
want to make hundreds of millions but you can start small by buying just one plot and grow to buy tens of plots and then acres of lands and keep selling all year round.
With the assistance of High Tops homes and properties you are good to go and be guided.
