HOW TO MAKE MONEY FROM REAL ESTATE IN LAGOS
BY DENNIS ISONG
It has been a little bit hard after the pandemic and Nigeria hasn’t found its feet yet.
It’s even a lot more complicated with the constant rise in dollar and inflation which don’t seem to have any feasible solution yet.
But despite all these, the Real Estate sector in Lagos has strongly stood the test of time. Of course, we have testimonies of people investing and cashing out big from this sector.
Lagos is currently the most populous city in Africa and alone is ranked the 5th largest economy in Africa.
Properties in Lagos can yield double the return on investment only if you are ready to play the long-term investment game and know how it works and what you are doing.
There are enough opportunities in Lagos for anyone who wants to make money in Real Estate in Lagos.
Someone like Barrister Teslim got lucky by working for a billionaire some years back.
Instead of spending all the money carelessly and philandering, he diverted it to land investment in Lagos.
He was part of the first set of people that saw a bigger prospect in Ibeju-Lekki and bought as many acres as he could afford many years ago.
Do you know how valuable land property is in Ibeju-Lekki? Now imagine someone who had bought land in the location years ago!
You may be confused about how to make money from Real Estate in Lagos but that will be discussed in this article.
- Land flipping
Ibeju-Lekki is one of the outskirt areas being developed on Lagos Island and it has been like that for some time now which suggests that there’s no stopping soon. These features are currently going on:
-4th Mainland bridge planned to link this region
-An airport
-Golf course
-The Dangote Refinery
And much more development is planned.
All of these should be enough reason for getting land in this region because it’s a great investment as the prices are still minimal.
What should a good investor do?
-A good investor can analyze upcoming regions and purchase land in bulk just like Barrister Teslim.
-After purchase, then wait for a few years when the value has appreciated due to development in the area.
-Lastly, resell to estate developers or homeowners.
A good land flip can return more than 500% ROI in a space of a few years if properly planned and executed.
- You could focus on Offsite Property Development
Developers and investors are making huge profits from this aspect of Real Estate in Lagos presently.
How does this happen? What are the steps to take?
i.The developers spot a sizable amount of land
- He projects how to increase the value by building a gated estate or block of flats for direct sale to homeowners.
iii. Once the plan is good, the investor makes the initial investment for purchase and sets up the land for building.
- Then the marketing team of the real estate company or developer swings into action. One of the ways to make it an easy run is to allow for payment by installment plan from the end homeowners.
All of these are done even when the property is still being developed. And at the end of the day, the investor and developer (Real Estate Company) make a sizable profit, which they can use to repeat the cycle a second time and so it continues that way.
- Real Estate Investment Management
Apart from the saying that “money is made through money”, isn’t it obvious from our day-to-day activities? Normally, real estate deals with high-profit returns which require huge investments for anyone. Is there hope for an average investor? An average investor,/can join, set up, or manage a Real estate investment Management Fund.
- Becoming a landlord to invest in long-term rentals
The shelter is important, so people would either need a place to stay or to do business (shops and offices). So, what do you come up with that fits into people’s demands?
You buy or build a residential rental. This can be in blocks of apartments or even shared spaces(office) is a good way to get started.
However, this can be more favorable if you are in the right location. When it comes to Real Estate, location matters most.
This is a sure way of reaping profits for as long as possible.
- Home-Renovation Flipping
People are yet to pay attention to this. However, you can have a double return on investment if it’s done right. You buy or even rent an old house in a very prime location, renovate and refit it. Then put it up for sales or rent. For example, you can rent or buy a beat-up 5-bedroom duplex, refit it into separate rooms, self-con, or studio apartments, then re-rent it out and recoup your initial investment with some profit to spare.
- Contract Flipping
This is purposely done for distress sales. A lot of people sell their properties as distress sales. It’s important to find these people early, buy the property, add value to it or just put it at a higher sales price and wait for a buyer who will buy it from you at a more profitable deal.
- Shortlist and Vacation Rentals
The shortlist business in Lagos is booming silently. The easy thing about having a short-let apartment is that you can start with a low-cash investment. For example, you can make double the profit if you invest 8 million naira at the end of the year. Although, this business is not easy neither is it for the faint-hearted because it’s not easy to manage as it requires some experience and access to pivotal information. Nonetheless, if you are on track, your investment is sure to return big for you.
Dennis Isong helps individuals invest right in Real estate. For questions on this article or enquiring about Real estate. Follow him on Youtube https://www.youtube.com/landpropertyng , Email Dennis@Landproperty.ng or Whatsapp/Call +2348164741041
