One thing extremely good about real estate business is that the investment opportunities are so diverse that there seem to be something for everyone. Anyone who wish to invest can invest whether he has thousands or billions of naira, you can even invest without a dime in your pocket. So, let's see how it works.
This is the first article I am writing on Real Estate therefore, I am going to highlight some of the best investment opportunities in the industry. But before that, let's look at the profit. I bought a plot of land in Ikorodu area of Lagos State in 2011 where I've wanted to develop something special, I paid ₦500,000 for it.
This year, I changed my mind and decided to sell it, when I asked the estate agents how much property is going in that area now, they told me the current price is two million naira and that my own which is very close to the main road will go for between 2.5 to 3 million naira. If I have bought like five plots for 2.5 million, I will be making ₦10,000,000 by now!
Just like that, 2 million to 2.5 million gain in less than two years for a green horn like me who is not in anyway into real estate investment. Then imagine what the pros who knows the ins and outs in the business will be making. I know a petty medicine seller who is now a multi millionaire through estate investment he started almost with no money, few years ago.
I also know how some of the millionaires in the industry started. Some of them started as small real estate agents in a kiosk, but today, they control some of the finest estates in Lagos, Abuja and other major cities in Nigeria.
So Where Are The Investments in Real Estate?
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| Serviced Luxury Flat |
Here are some of the areas you can invest and make your own money without tears. As you grow in the business, you can expand your portfolio or start big straight away. In this article, I will only deal with real estate categories that are peculiar to Nigeria, especially for beginner real estate entrepreneur.
1. Land Flipping - This means buying of land and quickly reselling it for profit. This is one of the smartest investment in the industry and requires no effort whatsoever. Just your money and knowledge and you are good to go. You will need substantial amount if you want to make hundreds of millions but you can start small by buying just one plot and grow to buying tens of plots and acres of lands and keep selling all year round.
2. Open Space Leasing - This works in a simple and unique way. Buy a property in a good location and lease it out for makeshift use. You can lease it to churches or business that wants to develop a makeshift outlet such as car wash and mechanics. They will be paying you monthly rantage while the property still appreciates for future sell. It is like borrowing money for someone and get paid double interest and still get your money back.
3. Real Estate Agency - This one is the simplest and easiest of them all. It is not investment per say but service rendering. How it works? Go round and look for properties to let and for sale, advertise your service and help secure clients for the property owners, you will be paid percentage as commission based on the amount the property is sold or rented. You can start with little or no money and if you are smart enough, you will grow to become a giant realtor.
4. Property Development - This is where the big guys in the industry are doing their stuffs. They acquire properties in nice locations, develop it into luxury apartments, commercial structures, etc and sell at a very high profit margin. They use like N20 million to develop a property and sell for N40 million.
5. House/Office Rent - Build a house and put it up for rent, get paid all year for a life time. That is exactly how this work but there is much more to that than I just stated, watch out for detailed articles on this soon.
In the coming weeks, I will be publish articles from our ongoing researches and advices from professional real estate investors and experts in the industry on various aspect of investments. Keep visiting regularly, you never can tell when any of those incisive juicy articles will be published.
@darlington, am happy and delighted for your write ups.I'm into real estate and will not mind if i can be allowed to share my wealth of wisdom with my fellow nigerians. Thanks
ReplyDeleteYou are highly welcomed to share your experience with your fellow Nigerians. As a matter of fact we're already yearning for it. Send what you have to share to info[at]palness.com. I can create Authors profile for you if you like?
DeleteThanks for the write up mr. Darlington. I,m Diaspora Nigerian and I think is right time I come back to invest in our economy. My place of interest is real estate development( building and selling condominiums on mortege) and we want to start with about 100m naira, I want to know what do I need to do and how do I start, will prefer coal city for a start.
DeleteThat's good nut I think N100 million is too small for real estate development. Anyway, it's good to start from somewhere than start nothing, you can start by developing bungalows in a places like the coal city you mentioned.
Delete@anonymous, coal city as your choice of location for the real estate development caught my attention. The rapid growth of real estate in coal city is overwhelming. You can never be wrong investing in coal city. Further enquiries and details
DeleteContact
Arc. Som
Wood land Home
08162601334
I really enjoy your article, it gladden my heart. I was actually looking round for a business that my wife will fall in love with as she intend to resign from her present job. Am also a real estate practitional (professional). I will send an article to help too if you won't mind. Good job,keep it up
ReplyDeleteMr. Adeleye, I hope your wife will fall in love with some of the businesses I've written about here. Maybe she can just browse around the site by herself, she'll be able to see lot more. Why not! We welcome your articles in advance. Thank you!
DeleteI find your article very helpful. As a diaspora Nigerian. I will not hesitate to buy as much land as possible. My sister who resides in London bought a plot at the back of MFM for 325,000 in 2008, that area now goes for 2M. I have contacted a few estates along Lagos/Abeokuta Expressway all before Redemption camp. Prices ranges from 2 to 3 million Naira. I intend to get as much as 10 plots then back to my base to hide for another 5 years. Does this make sense or l should just leave my money with the bank and get my 10% p.a on fixed deposit? Please valuable recommendation is welcomed.
DeleteRegards,
By the next five years, the properties there may be more than 5million, so go ahead and buy but make sure you are buying genueine ones.
DeleteKeeping money in a bank for 10% is like wasting away resources. If you invest N5M with us, you are sure of getting N400,000 for the next two years which is N9.6M total. No bank fix deposit will pay you anything close to quater of that amount.
Good Morning Mr Darlinton.
ReplyDeleteThank you for sharing your knowledge:may God continue to replenish you in Jesus' Name.
Please apart from the Receipt of Purchase given by the family,was there any other supporting documents you were given by them,like deed of assignment etc?
Did you have to work on the survey and c of o by yourself?
How much does it cost to do a survey on a 3 plots in(the plots are together) in ota area?
Thank you for your anticipated speedy response.
Wisdom
The documents I usually get are:
Delete1. Receipt of purchase signed by the family head or any designated person.
2. Family Deed of Assignment (Iwe Ebi) signed by 4-7 family heads
3. Original Survey plan. Make sure it's original, not back dated.
I don't used to do c of o due to the cost.
I really don't know how much it cost to do original survey in Ogun State for now but I think it should be around N50,000 per plot (not sure)
Good Evening and complements of the season!
ReplyDeleteThanks for this list. it is very helpful.
However,the one i saw has 1&2. The no.2 will be signed by 3 of the eldest family members,the rest are women who are in their husbands houses. They don't have No.3 as the land has not be surveyed before. it means its the buyer that will do that.
Enquiries from the person that connected me to the family says that:Survey and its document is N250,000 and it will be ready in 2wks,Cof O is N200,000 per plot. and will be ready in 3yrs.
Sir should i go ahead and then do the survey by myself? I will appreciate your candid advice as someone who has toed this part before.
Thank you so much.
Wisdom.
Yes, you can go ahead and do the survey bu yourself but I think N250,000 is a bit on the high side.
DeleteI absolutely agree with you sir! Contact of a good surveyor with an affordable charge will be highly appreciated.
DeleteThank you sir.
Wisdom,
Thank you very much for this post. I'm a lady and does not have money to start this. Yes being an agent does not quite need capital but I think its strenuous for a lady. can you advice on what I could do, thanks.
ReplyDeleteHello Darlington, my name is Paul and i new in the business as a marketer. i dont mind been groomed and nurtured in this business cos i realy have passion for it but i find it difficult in locating my target market.
ReplyDeleteDear Darlington,thanks for the impressive write up. Iam a real estate agent Ebonyi state born and resident. your reply to a Nigerian in diaspora who said he has about one hundred million naira to go into property development in coal city contradicts your article no.4 which you said,develop with twenty million and sell for million. May boldly invite investors and developers to come to Ebonyi state to acquire genuine and strategically located cheap land ,develop,sell and manage. We can assist you get what you want.Ebonyi state is peaceful and investors friendly.patcy real estate enterprises.
ReplyDeleteThe N20 million I mentioned in No 4 is an assumption and not the actual cost of developing a prime property. In prime real estate development, finishing a duplex alone could take much more than N20 M.
DeleteDear Darlington, your information is very impressive.Am a young graduate with passion for real but has no money to start the business, can you link me up with somebody that help me to actualize my dream? I will be glad to hear your response. Thanks
ReplyDeleteThanks for your article. Am a young lady that is very much interested in investments. I would like to know if it is possible to buy shares in real estate development companies or any other 'hard assets' companies as I dont have the money to buy properties myself. Can you help me out?
ReplyDeleteLet's meet for a face to face discussion if you're based in Lagos or ready to travel to Lagos... Add me on Facebook
DeleteThanks for replyin. I dont stay in Lagos neither am I ready to travel to Lagos and also am a university graduand, so that u dont expect much from me. Am am really interested in wise investments. I will add u up now on facebook. Thank you again
ReplyDeleteDear Darlington, your information is very impressive. Please advice me where to invest in Lagos state on real estate. I am a beginner and i want a long term investment with cheaper lands. Thanks, Kc.
ReplyDeleteAny lead on the Warri market?
ReplyDeleteHello Am Bukola Badmos
ReplyDeleteI have been reading your post and its quit enlighten and i have my onw take as well. I want to express my deep feeling here i dont know if this can work am into property management and i have been doing this for a while now and its a bit hard to get through.
Sir i have a vision as regards property investment i will like to be part of your goals and work with you as well . Thanks
The whole concept sound interesting, Keep it up, information is power!
ReplyDelete