5 UNPOPULAR PROPERTY INVESTMENT TRENDS IN NIGERIA

When you hear "property investment" as a Nigerian, What comes to mind?

we can make an accurate guess that it's either

Building a house and renting, Building to resell or Land banking.

…What if we told you that there is more?

Buying and owning real estate is a rewarding and profitable financial option. It differs from bond and stock investment. Prospective real estate buyers can use leverage to purchase a home by paying only a portion of the total cost upfront. They will pay the remaining payment with interest over time.

Being a landlord of a rental property is one of the greatest ways for investors to generate money in real estate. House flippers, on the other hand, buy undervalued real estate, fix it up, and resell it for a profit. More information on how to invest in real estate can be found by searching this blog.

You probably don't want to be a landlord if you've ever had one: It doesn't appear that taking calls about oversized bugs and overflowing toilets is the most exciting profession in the world.

However, if done correctly, real estate investing may be profitable, though not spectacular. It can help diversify your current investment portfolio while also providing an additional source of income. And many of the best real estate ventures don't necessitate attending to every whim of a tenant.

The problem is that many new real estate investors have no idea where or how to begin. Here are some of the top real estate investment opportunities, ranging from low-maintenance to high-maintenance.

Best ways to invest in real estate

1. Buy REITs (real estate investment trusts)

Real estate investment trusts (REITs) allow you to invest in real estate without owning the property. They're organizations that own commercial properties, such as office buildings, retail spaces, apartments, and hotels, and are sometimes compared to mutual funds. REITs tend to offer substantial dividends, making them a popular retirement investment. Investors who do not require or desire monthly income might have their dividends automatically reinvested to increase the value of their investment.

Is it wise to invest in real estate investment trusts (REITs)? They might be simple, but they can also be complex and varied. Some, like stocks, are traded on a stock exchange, while others aren't. Because non-traded REITs are difficult to sell and value, the type of REIT you buy can have a major impact on the amount of risk you take on. In general, new investors should stick to publicly traded REITs that may be purchased through brokerage firms.

2. Make use of online Property investment platforms

You'll understand online real estate investment if you're familiar with organizations like RiseVest and Wealth. ng, which connect borrowers with investors eager to lend them money for various personal requirements like a wedding or house remodelling.

These platforms bring together real estate developers and investors looking to fund projects with financing or equity. In exchange for taking on a large degree of risk and paying a fee to the platform, investors hope to get monthly or quarterly dividends. These are speculative and illiquid, like many real estate investments, in that you can't readily sell them like a stock.

3. Investing in Rental Properties

Investing in rental buildings, as well as land ownership, is a time-honoured tradition. After purchasing a property, you rent it out to renters. You are responsible for paying the costs of property maintenance as the landlord.

Those with do-it-yourself (DIY) and renovation abilities, as well as the patience to manage tenants, may find rental homes to be a rewarding business. Although this technique does not necessitate a large sum of money, it does necessitate sufficient finances to cover maintenance expenditures during unoccupied months.

However, you will have a steady income and assets that will appreciate. It also uses leverage to raise capital, and there are several tax-deductible expenses associated with the company. However, keep in mind that managing tenants can be time-consuming because there is a risk of property damage from tenants as well as a loss of income due to vacancies.

Of course, you can buy a complete investment property and rent it out. Find one with a total cost of living that is less than the amount you may charge in rent. You'll also need to hire a property manager if you don't want to be the one who shows up with a toolbelt to fix a leak — or even the one who calls that person.

If you handle it yourself, you'll learn a lot about the industry, and you'll have greater experience when you acquire future properties.

4. Consider flipping investment properties

Here, you buy a low-cost home in need of some Care, renovate it as efficiently as possible, and then flip it for a profit. House flipping is a term used to describe the process of selling this type of home. 

This area of work is for persons who have a lot of experience with real estate appraisal, refurbishment, and marketing. It also requires a lot of money and the capacity to conduct and supervise repairs as needed. House flipping is regarded as the craziest aspect of real estate investing. House flippers are not the same as landlords who buy and rent properties.

The majority of flippers are aiming to sell discounted properties within six months after purchase. Pure house flippers do not invest in the property's reconstruction. As a result, their investment must have an intrinsic worth that allows them to benefit without making any changes. Otherwise, the house will be eliminated from consideration.

Because so much of the math behind flipping needs a very accurate estimate of how much repairs will cost, which is not easy to achieve, there is a higher element of risk.

Another disadvantage of flipping is that the longer you have the property, the less money you make because you're paying a mortgage without earning any money. You can reduce this danger by staying in the house while it is being renovated. As long as the majority of the updates are cosmetic and you don't mind a little dust, this works.

5. Make a room rental

Finally, you might use a site like Airbnb to rent out a portion of your property or use it for short lets to get your toes wet in the real estate waters. It's house hacking for the averse to commitment: You don't have to sign a long-term lease; possible tenants are checked to some extent by Airbnb, and the company's host guarantee protects you from damages.

Renting a room appears to be a lot more approachable than the more complex concept of real estate investing. You can rent out a spare room if you have one.

The finest real estate investments, like all financial decisions, are those that benefit you, the investor. Consider how much time you have, how much money you're prepared to commit, and whether you want to be the one to handle home issues when they arise. Instead of investing directly in a property, try investing in real estate through a REIT or a crowdfunding site if you don't have any DIY skills.

 

Conclusion

The benefit of PROPERTY INVESTMENT cannot be over-emphasized, however, most time, it appears complex to financially cumbersome. With the creative ways listed above, you can start your property investment journey with a low budget and still grow your wealth with dedication. 

Source: PWANMAX

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