There are several ways to make money from real estate in Nigeria. Here are a few:
- Buying and selling property: Also known as buy and hold. one of the most common ways to make money in real estate is by buying properties at a low price and selling them at a higher price. This could involve buying land, houses or commercial properties. it is advisable to buy property during the pre-launch price, this time the property is below the market level and when the estate has been fully developed you can sell it to gain huge return on your investment (RIO).
- Rental income: Another way to make money in real estate is by renting out properties to tenants. This could be residential or commercial properties. To maximize profits, it is important to set a competitive rent rate and keep the property well-maintained.
- Property flipping: Buy a property that needs repairs or renovation, fix it up, and sell it at a higher price. This is called flipping.
- Real Estate Investment Trusts (REITs): Invest in REITs, which are companies that own and operate income-generating real estate properties.
- Short-Term Rentals: Renting out your property on a short-term basis through platforms like Airbnb can generate extra income.
- Land Banking: Purchase undeveloped land in areas that are expected to grow in value over time. As the value increases, you can sell the land for a profit.
- Capitalizing on tax benefits: Depending on the location of the property and local tax laws, there may be tax benefits to investing in off-plan property. Consult with a tax professional to determine if there are any tax advantages to investing in off-plan property.
- Buying at a discount: When you buy off-plan property, you are often able to get a discount compared to the market value of the finished property. If you can buy at a discount and the property value increases by the time it is completed, you can make a profit.
- Investing in a development: You can invest in a property development project, providing funds to the developer in exchange for a share of the profits. This can be a high-risk, high-reward option, but can potentially provide significant returns.
- Off-plan property: Property like mall, bungalow, apartment, duplex and terrace etc. By this time of investment the property completion is 10%-20%, then you sell it after the property has been completed and estate is livable.
It is important to note that real estate investment in Nigeria requires a significant amount of capital, expertise, and research. It is advisable to seek the services of professionals such as real estate consultant, property lawyer, and surveyor to ensure a successful investment.