If there is any business in Nigeria that is truly lucrative to the highest point, it has to be Real Estate business. Most of the top billionaire in Nigeria are real estate investors. It is a money spinner of the highest order. Real Estate is currently booming in Nigeria and people are making millions in it. I want us to take a closer look at the business and see how anyone may invest in this sector of the economy irrespective of how much you have.
One thing extremely good about real estate business is that the investment opportunities are so diverse that there seem to be something for everyone. Anyone who wish to invest can invest whether he has thousands or billions of naira, you can even invest without a dime in your pocket. So, let’s see how it works.
This is the first article I am writing on Real Estate therefore, I am going to highlight some of the best investment opportunities in the industry. But before that, let’s look at the profit. I bought a plot of land in Ikorodu area of Lagos State in 2011 where I’ve wanted to develop something special, I paid ₦500,000 for it.
This year, I changed my mind and decided to sell it, when I asked the estate agents how much property is going in that area now, they told me the current price is two million naira and that my own which is very close to the main road will go for between 2.5 to 3 million naira. If I have bought like five plots for 2.5 million, I will be making ₦10,000,000 by now!
Just like that, 2 million to 2.5 million gain in less than two years for a green horn like me who is not in anyway into real estate investment. Then imagine what the pros who knows the ins and outs in the business will be making. I know a petty medicine seller who is now a multi millionaire through estate investment he started almost with no money, few years ago.
I also know how some of the millionaires in the industry started. Some of them started as small real estate agents in a kiosk, but today, they control some of the finest estates in Lagos, Abuja and other major cities in Nigeria.
So Where Are The Investments in Real Estate?
|Serviced Luxury Flat
Here are some of the areas you can invest and make your own money without tears. As you grow in the business, you can expand your portfolio or start big straight away. In this article, I will only deal with real estate categories that are peculiar to Nigeria, especially for beginner real estate entrepreneur.
1. Land Flipping – This means buying of land and quickly reselling it for profit. This is one of the smartest investment in the industry and requires no effort whatsoever. Just your money and knowledge and you are good to go. You will need substantial amount if you want to make hundreds of millions but you can start small by buying just one plot and grow to buying tens of plots and acres of lands and keep selling all year round.
2. Open Space Leasing – This works in a simple and unique way. Buy a property in a good location and lease it out for makeshift use. You can lease it to churches or business that wants to develop a makeshift outlet such as car wash and mechanics. They will be paying you monthly rantage while the property still appreciates for future sell. It is like borrowing money for someone and get paid double interest and still get your money back.
3. Real Estate Agency – This one is the simplest and easiest of them all. It is not investment per say but service rendering. How it works? Go round and look for properties to let and for sale, advertise your service and help secure clients for the property owners, you will be paid percentage as commission based on the amount the property is sold or rented. You can start with little or no money and if you are smart enough, you will grow to become a giant realtor.
4. Property Development – This is where the big guys in the industry are doing their stuffs. They acquire properties in nice locations, develop it into luxury apartments, commercial structures, etc and sell at a very high profit margin. They use like N20 million to develop a property and sell for N40 million.
5. House/Office Rent – Build a house and put it up for rent, get paid all year for a life time. That is exactly how this work but there is much more to that than I just stated, watch out for detailed articles on this soon.
In the coming weeks, I will be publish articles from our ongoing researches and advices from professional real estate investors and experts in the industry on various aspect of investments. Keep visiting regularly, you never can tell when any of those incisive juicy articles will be published.