Posted On November, 11th, 2022.

Real estate is a property which contains land alongside any other structure existing on it, such as buildings, roads, crops and other mineral resources.

On the other hand, investment involves acquiring assets to generate profit and create future value.

Therefore, real estate investment is a means of putting money into properties such as land and buildings for capital appreciation and to earn income.

In Nigeria today, the real estate business is thriving. There are lots of opportunities in real estate you can tap into, given the growing population in Nigeria. Hence, it is worth your attention. And Interestingly, you do not need unique expertise to become a real estate investor.

However, you must have a good knowledge of the type of real estate investment you want to make.

There are different types of real estate investments. 

Nevertheless, these three top-notch real estate investments will give you good returns on your money.

They Include :

1. Residential real estate

2. Commercial real estate

3. Land Flipping

I would discuss each of these real estate investments for easy comprehension. But, there are factors to consider before you invest in real estate to maximize your gains.

FACTORS TO CONSIDER BEFORE INVESTING IN REAL ESTATE

1.Finance

Real estate investment requires capital and time. So, you must have a stable income while you wait for profits. Also, you must know the source to get money for the investment. It could be from personal capital, loan from banks, federal mortgage loan, friends and family. What's more, you must be sure of the exact amount you are willing to put into the investment.

2.Purpose of Investment

Why are you interested in investing in real estate? Is it to obtain regular income or for capital appreciation over time? Do you intend to hold the property for the short or long term? You should be able to answer these questions. Also, you must know whether you want rental properties or raw land for flipping.

3.Location

Location is vital to value appreciation in real estate. Therefore, you should buy your house or land in a profitable area. Look out for real estate value drivers, such as the tendency of the locality to undergo rapid development. Also, consider the nearness to local amenities like markets, schools, etc. Furthermore, basic infrastructures like good roads, electricity and water are all vital to real estate investment. You must ensure that the environment is safe for your investment purpose.

In addition, you must choose your location based on your investment motives. For instance, a residential building would be better off in a more serene environment. Meanwhile, a commercial building would do well in a neighbourhood with a larger population.

4.Real Estate Laws

You must be familiar with the laws guiding the purchase of the property. A lawyer might be able to help you with all the necessary documents you need to obtain.

Having mentioned some of the points to consider before investing in real estate, here are the three attractive real estate investments you must make for profit.

THREE SUPERB REAL ESTATE INVESTMENTS YOU MUST MAKE

1. Residential Real estate

This form of investment is quite common. It involves buying a house or building a new one for lease. Here, you will require tenants who pay rental income to you, either monthly or annually. Residential rental income provides a stable income for you. Depending on your budget and location, you could build one, two or three-bedroom flats for lease.

However, from my experience in Nigeria, self-contained apartments are cost-effective with good profit turnout for a low budget. Self-contained apartments are cheaper for tenants. Hence, they get easily leased out. They are also easier to maintain.

For a big budget, you could invest in high-rise buildings and duplexes for lease, especially in high-end areas.

Furthermore, service apartments are fast becoming popular in Nigeria. Interestingly, they are another highly profitable way to invest in residential real estate.

2. Commercial Real Estate

These are properties used for business purposes. They include hotels, offices, hospitals, hostels, shopping malls, etc.

Commercial real estate is a worthwhile investment. You can build small or big offices for rent to tenants. Also, you can invest in blocks of shops or big student hostels since they give a high return on investment. Because the more tenants you have, the higher your returns.

Furthermore, hotels and hospitals are excellent forms of commercial real estate investments. As a hotelier and building contractor, I would say you can build a hotel based on your financial capacity and still make good gains. But, the hotel must have unique aesthetics, excellent staff and a welcoming environment, among others.

3. Land Flipping

Land flipping is a process whereby you buy land at a low cost and sell it at a higher price for good profits. It is a significantly rewarding form of real estate investment. You can have quick and eye-catching returns on your investment. What's important is that you get the land in a rapidly developing area where it can speedily appreciate.

Land flipping is easy and cost-effective. It requires little maintenance costs. You can leave your land resting for months once you secure it with a fence. What's more, you can invest in land with little capital, flip it and make good gains.

There are diverse real estate investments.

 However, having tried and tested the three listed above, there is no gainsaying that they are excellent ways to make good money.

 But, it is left to your discretion to decide what you want. 

Nevertheless, you can contact Anjorin Nigeria Limited on this page peradventure you chose to invest in real estate.