The ABC’s of Real Estate

What is Real Estate?

Real Estate in simple terms is defined as the land and any permanent structure like a home attached to land either man-made or natural.

Real Estate includes property consisting of land and the buildings on it, alongside its natural resources like crops, minerals etc.

Real Estate investing is one major way one can generate steady income streams. While investing in real estate in Nigeria offers countless opportunities to gain financial freedom and build wealth, many loopholes can limit what you can make.

In this article we will be taking you through different ways how to invest in Real Estate in Nigeria, we will also be showing you the benefits of investing in Real Estate, and also will include things to put into consideration before venturing into the real estate investment businesses in Nigeria.

How to invest in Real Estate

Presently the real estate sector in Nigeria is currently among the top ten booming industries. . Regardless of the economic instability. It is a money generator and a real money spinner.

1. Property development

 Property development is a very large capital-intensive industry. In this case, properties are acquired in nice areas, and then they are developed and restructured into luxury apartments. For example, if you spend 250 million developing a house in a nice location, expect to sell it for 500 to 550 million.

2. Land/Home Flipping.

Real estate investment as stated earlier is the process of purchasing and reselling for a quick profit. It is one of the best and smartest investments, and it requires little or even no effort on the owners’ part. However, it is capital-intensive.  The process of flipping houses requires extensive real estate experience and marketing sense.

3 Land Banking

This is the process of buying a piece of land in an underdeveloped or undeveloped area and then waiting for development to move towards the area. this causes the value of the land to appreciate after which the land is sold for a much higher price.

How does Real Estate Work?

Real Estate possesses different types of investment properties and good investors choose their investment strategy based on the need for profit. Fast-turn investment is included and it refers to the process of buying a property and selling it quickly. Fast-turn investing is often referred to as “flipping”. One can also invest for the long-term, in this case buying a property for rent or lease over a long period is required, also gaining both the rent and green values of the purchased property would be achieved.

Benefits of investing in Real Estate

One major benefit of real estate investment has to offer is the ability to generate wealth through appreciation, hedging against inflation and building equity, it also provides ways for passive income, stable cash flow, tax advantages, leverage etc. Also you gain access to long-term financial security. We would discuss this topic subsequently

Things to consider before venturing into real estate investment.

•Location

•ROI(Return on investment)

•Quality

•Tax advantages

In conclusion,

Before going into any real estate investment a lot is to be considered, Given that real estate investing is a capital intense industry, you have to have the requisite knowledge. One thing is guaranteed in real estate if you invest wisely you get massive returns the ROI is simply amazing.