Investing in real estate is one of the best methods you can employ to secure a future for yourself, as well as guarantee your financial freedom. However, when acquiring a property you need to take into account certain factors so that your investment yields and is fruitful. As would be subsequently discussed, the following are startup tips for real estate business in Nigeria.
Some of the key elements include; connectivity, location, and developments around the property; though these are essential, they are not the only things to consider before investing in real estate.
1. Think about the objective of your investment
As basic as this seems, this is one of the first steps you must take into consideration in order to define the objective of your investment. This is not just referring to the amount you want to invest, but for you to also clearly define why you want to purchase that property— to rent out, to sell, or even to live in.
2. Real Estate Agencies
Other startup tips for real estate business in Nigeria involves finding an exceptional real estate agent or agency to help you through the process. Acquiring a property should never have to bring you extra worries or problems; on the contrary, it is an investment and should be able to fetch you a higher ROI.
When you partner with a company or agent, it puts you ahead of your investing game. This is because it ensures that you have the needed knowledge to know the areas where you should or should not invest.
3. Think long-term
One out of the many mistakes you can make while investing in real estate is believing that the ROI will be immediate. While it is indeed possible, don’t bank on it; just in case your return on investment takes a long time in yielding. Also, ensure you are doing your investments in an intelligent and strategic way. This ensures you don’t lose your money.
4. Analyze the market
Conducting a market survey is one of the essential startup tips for real estate business in Nigeria. While you can invest in real estate in practically any economical situation, it is best to still analyze the market. Take a survey, weigh your options, and know the pros and cons of investing in real estate before you eventually get into it. This saves you unnecessary losses and disappointments.
Analyzing the market is an essential strategy that will help you think about and consider the type of property you want to acquire, and put it to the appropriate use. For instance, when you acquire a house in an academic environment, it allows you to rent out that property or sell it more easily to a family. When you acquire an apartment in a beach-situated area, it will also allow you to rent it while you are not using it.
5. Look at the value
After taking a market survey, the next thing you want to consider is the value of the property you are purchasing. Will the value have increased over a period of time, or would it drop in value? What determines the value is the monetary difference between the price at purchase and the price of sale. It is advisable to observe carefully before putting your money in to invest.
Another very common mistake is to believe that you need to be an expert or know every single detail about investing. You can’t possibly know everything, so why not just start? You also do not need to have tons of money first before investing in real estate. If you want to invest with little and get a lot, it is also a possibility. The more you procrastinate, the less likely you are to take a step. Start investing today, not tomorrow.
7. Pre-sale purchase
Startup tips for real estate business in Nigeria also include buying houses and apartments in presale. There are many benefits that you can leverage on; though it depends on what you are seeking to buy. If what you are seeking to buy is in sync with the offer available, why not? By all means, go for it and you’d be pleased you did.
8. Consider access and connectivity
The access, as well as the connectivity of the property, are two elements that increase the growth of surplus-value. These also can give you clues on how to make your investment pay off. For instance, owning property close to a hospital is more likely to attract doctors or other medical personnel. How accessible and known is the area in which your property of purchase is located? These are things to consider.
9. Consider the amenities
The amenities of the property also helps to increase its added value. This involves the needs of the inhabitants to improve their general well-being and quality of life. This has led real estate agents and investors alike to be concerned with providing such spaces that meet such needs. This also involves you knowing the physical environs or geographical location the property is situated, and meet peoples’ needs in that area.
10. Think with your head, not with your heart
As aforementioned, you must have clear and precise objectives of your investment. However, if you are seeking to buy a house to love in with your family, then you want to think with both your head and your heart; be emotional about it, yet logical enough. Many times, we tend to fall in love with a property but it may not pass the logic test. So, before putting all your emotions out there, be practical as well.
These startup tips for real estate business in Nigeria are not all there are; they are merely a guide to getting you started as a real estate investor. These tips have been put together to guarantee your ROI, and so you don’t die— or go broke— trying. Whatever your intention or purpose for investing in real estate, always think of it as a business.