These days, real estate is considered to be one of the most profitable and
growing businesses. In the Nigeria of today, you can make a lot of money by
starting a real estate business, whether as a real estate agent or as an
Starting your own real estate business is a good carrier option that comes with a lot of difficulties and challenges. The market is a well-established one with tough competition from numerous new and established players. However, do not be discouraged by the competition rather focus on building a unique brand that stands out amongst the rest.
There's no doubt that if you become a real estate investor you are on a proven path to wealth. More millionaires have been created from property investing than any other method.
There are pitfalls to avoid and if you want to know how to get into real estate for the lowest risk and with the greatest returns this is the definitive real estate investing guide. The sooner you start real estate investing the sooner you will see the potential for it to deliver fantastic returns. You may be looking to earn some extra money on a part-time basis or to change to a new lifestyle and become a full-time real estate investor. This real estate investment guides will teach you everything you need to know.
The guide explains the best opportunities for profit and details the step by step process for real estate investing success. This real estate investing guide is a goldmine of information and contains the knowledge of many years’ experience. Real estate for beginners can be a daunting thought but the information in this guide will give you the confidence and know how to make your first investment. Investing in real estate can be very difficult or very easy, depending on your experience and method of investing.
What is Land banking?
Land banking is the practice of purchasing undeveloped land with the intention of holding onto it and selling it at a profit at a future date. There are different real estate investment you can do and make good profit, including renting. However land banking is the only real estate investment strategy that requires zero time and effort. All you need to do is make good buying decision and then wait to cash out big in a few years or more. Instead of keeping your money in the bank where you make little percentage of interest in a year, simply invest it on landed properties.
Anyone can do land banking and flipping, and make good money from it. And it's even better for those based abroad because since they don't stay in Nigeria, they are more patient to leave the land for years to triple it's price before selling it. The years does seem to fly by quickly when you are not paying attention.
For you to be successful with land banking, you have to apply a strategy to it and the strategy is simple. Only buy your land in an area that has indication for a good price appreciation within a few years. Choose a good location and buy from a progressive estate developers.
How many years is it good to keep a land in Nigeria before selling it, to maximize your profit?
If you're a real estate investor wondering how many years to keep a land in Nigeria before selling it at a profit. It depends on how much profit you will be satisfied with. While one investor may be satisfied with 150% return on investment another may not and therefore may want to leave the land for a few years more, to increase price value.
A land can only appreciate and never depreciate. Therefore the longer you keep a land the more it will appreciate. However the pace at which a land appreciate depends on the perceived value of the location of the land, landmarks and infrastructural facilities. Properties appreciate quicker when located in a commercial areas. The more infrastructural facilities an area can boast of, the more it can add to it's real estate value and the quicker the pace at which properties appreciate.
infrastructural facilities includes, good roads and drainage, 24hours security, water supply, power supply, schools, hospitals, etc.
So therefore how long you should keep a land in Nigeria before selling it, should be how long it takes to get the profit you are satisfied with. If you're not in a hurry to get your money back, then wait for more years to maximize your profit on the land.
5 Reasons why investing in landed properties seems to be best in real estate investment.
1.It is cheap to start and secure.
2.Don't need to do ANYTHING to cash out big.
3.Owning a land is Hand-off investment.
5.Investing in landed properties gives you peace of mind. However before venturing into land property investment, you need to know all the necessary land documents and there purposes in Nigeria.
House-flipping is the most active, hands-on way to invest in real estate. In a house
flip, an investor purchases a home, makes changes and renovations to improve its
value on the market, and then sells it a higher price.
House-flipping is generally a short-term investment, because the longer the investor owns the home without leasing it to tenants, the more their expenses add up. This eats away at their return potential when they sell it. Investors can repair or renovate the home to increase its sale price or sell it without making any repairs when its value in the housing market increases. If you watch HGTV, then you have probably watched a house get transformed from rags to riches in under 30 minutes and sold for a sizable profit by house- flipping pros. In these shows, house-flippers buy a home that they believe to be underpriced, add value through renovations —such as replacing countertops or flooring, or tearing down walls to change floor plans —and then sell the home at a higher price to turn a profit.
While house-flipping is exciting, it also requires deep financial and real estate knowledge to ensure that you can make over the home within time and budget constraints to ensure that you make money when the home is sold. The success — and the financial burden —of a house flip falls entirely on the investor. You need enough cash to afford a down payment and/or good enough credit to secure a home loan in order to buy a property before another flipper does. It’s a high-pressure and high-stakes real estate investment that makes for great TV, but a good investment opportunity only for certain knowledgeable investors.
Another property-flipping strategy is wholesaling. Wholesaling is when an investor signs a contract to buy a property that they believe is priced below market value and then sells it quickly to another investor at a higher price for a profit. Most often, wholesalers seek out properties in need of renovations and sell them to house-flippers who are willing to perform the renovations to add more value to the property in order to sell it at a higher price. An investor will sign a contract to buy a property and put down an earnest money deposit. Then, they quickly try to sell the home to a house-flipper at a premium, earning a profit. Essentially, a wholesaler gets a finder’s fee for brokering a home sale to a house-flipper. However, unlike traditional property brokers, a wholesaler uses their position as the contracted homebuyer to broker the deal.
Wholesaling is a risky venture, also requiring real estate and financial expertise. It demands due diligence and access to a network of house-flippers in order to find a buyer within a short timeframe to sell the property at a profitable price. Otherwise, like house-flipping, you risk not earning a profit or, worse, losing money.
Investing in Real Estate properties is one strategic way to create
wealth and not end up working when your old feeble hands should be
resting. So if you are considering buying a property, to be the next
landlord in your area, you are doing the right thing by reading this article. consider this
as investing in rental property for beginners. Good thing is, this article is
just what you need, So here is a simple guide to buying an investment
property to rent.
• 2 PROPERTY TYPES
• 3 SOCIAL AMENITIES
• 4 RENTAL INCOME
• 5 SECURITY
• 6 NUMBER OF VACANCIES
The first thing you need if not the most important when considering investing in real estate properties is the choice of location. The location you choose to invest will go a long way to either determine if you make loss or profit, both on short and long runs. The location in which you have chosen determines the type of tenants you attract and the vacancy rate you charge. The location of your real estate property depends on other factors which will also either make or mar your investment. What is the area’s proximity to the market, what are the prominent businesses in and around the area, what is the future growth rate of the area? These are some of the questions you should have answers to, before making payments for a property and would prove important as a rental property investment strategy.
If you are considering a family-sized accommodation, you want to ensure you have properties to accommodate families and not bachelors. The quality of local educational facilities in the area also needs to be carefully examined. If a property is good, but the nearby schools are poor or non- existent, it can affect the value of your investment. Another instance is knowing the kind of property to buy for a student populated area even though you will have fairly regular vacancies as regards new sessions which also equates to income, but you don’t want to run a loss by having to repair damages every now and then with your profits.
Inasmuch as the goal is getting people to rent your properties, you then must consider what benefits lie in for the prospective tenant too. Are there necessary social amenities like water, good roads that lead in and out of the area? Check the potential location for current or projected parks, malls, gyms, movie theaters, public transport hubs and all the other perks that attract renters. Cities, and sometimes even particular areas of a city, have loads of promotional literature that will give you an idea of where the best blend of public amenities and private property can be found. This is also a good start on how to determine a good rental property.
The aim as earlier highlighted is to make a profit and to do that is through rental income. It is better put as the bread and butter for your rental property investment. Knowing the average rent the tenants in the area pay will give you an idea of what to charge. You don’t want to be charging either too low or high. If charging the average rent is not going to be enough to cover your mortgage payment, taxes, and other expenses,then you have to keep looking. Be sure to research the area well enough to gauge where the area will be headed in the next five years. If you can afford the area now, and major improvements are in store and property taxes are expected to increase, then what could be affordable today may mean bankruptcy later.
Obviously, no one would love to rent an apartment in an area where the crime rate is high. This is also another important rental property advice to consider when deciding the kind of property, you want to invest in. A visit to the Police station for accurate crime statistics or a careful observation of the area. Getting familiar with residents of the area is another way to get the information needed. Items to look for are vandalism rates, serious crimes, petty crimes and recent activities. You might also want to ask about the frequency of a police presence in your neighborhood.
NUMBER OF VACANCIES
When a particular area has a high number of vacancies, this can either be a bad or good sign. As a potential real estate investor, you must ensure to find out which. Is it that people are leaving the area or is it a new place with potentials for future growth? You should also determine whether you can cover for any seasonal fluctuations in vacancies. The vacancy rates also give you an idea of how successful you will be at attracting tenants. High vacancy rates force landlords to lower rents in order to attract tenants. Low vacancy rates allow landlords to raise rental rates.
If you are here, that means you are ready, now you have read this guide to start buying your first investment property. You can visit ideyfindhouse home to get started.