Thinking about purchasing real estate in Nigeria, or an investment property? Real estate in Nigeria has produced many of the country’s wealthiest people. So there are plenty of reasons to think that it is a sound investment. Experts agree, however, that as with any investment, it’s better to be well-versed before diving in with millions of naira. Investing in real estate in Nigeria is one strategic way to create wealth and not end up working when your old feeble hands should be resting. Here are some of the things you should consider and investigate.
The first thing you need if not the most important when considering investing in real estate in Nigeria is the choice of location. The location you choose to invest in will go a long way to determine if you make a loss or profit, both in the short and long term. The location which you have chosen determines the type of tenants you attract and the vacancy rate you charge.
For instance, if you have an investment property to rent in Lekki and Mushin, the type of tenants for both locations will definitely be different and the vacancy rates will also differ.
- What is the area’s proximity to the market?
- 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 real estate in Nigeria.
SOCIAL AMENITIES AND REAL ESTATE IN NIGERIA
In as much as the goal is getting people to rent your properties. You must also consider what benefits lie in for the prospective tenant too. Are there necessary social amenities like water and 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.
Sometimes, 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.
The aim of making investments in real estate in Nigeria as earlier highlighted is to make a profit. And the way to do that is through rental income. 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.
SECURITY AND REAL ESTATE IN NIGERIA
Obviously, no one would love to rent an apartment in an area where the crime rate is high. This is also another important piece of advice to consider when deciding the kind of real estate in Nigeria you want to invest in. A visit to the Police station for accurate crime statistics or careful observation of the area will be beneficial to you and your tenants. Getting familiar with residents of the area is another way to get the information needed.
Join us at Brent Housing today, and let’s be your guide into real estate in Nigeria.