Looking for the best ways to make money from Real estate in Nigeria?
We got you covered.
Just like you, many people seek to earn an income through real estate in Nigeria. However, few people know how to do it the right way and be successful at it. It’s not as simple as some people make it seem.
But not to worry as we will make this seeming difficult puzzle easy with this post
But before that,
You already know that the real estate market in Nigeria has been growing steadily over the years and it’s expected to continue doing so as more and more people are seeking to invest in property to generate extra income.
There are, however, a number of ways you can make this money from real estate in Nigeria other than buying land or selling a house
This article will show you the 9 Best ways to make money from real estate in Nigeria while still leaving room for you to come up with your own methods if you feel so inclined!
Want to find out these money-making strategies?
9 Best Ways To Make Money From Real Estate In Nigeria That You Probably Didn’t Know
Making money with real estate in Nigeria isn’t necessarily easy, but it’s also not impossible either.
There are a number of ways you can make some money from real estate in Nigeria and here are some of them to help you get started and give you an idea of what’s possible…
1) Invest In Land
Land investment is one of the best ways to make money from Real Estate In Nigeria.
If you’re buying land and developing it yourself, a realistic timeframe for your development project should be established upfront.
Your real estate agent or investment team can help with estimating construction costs and timelines, as well as identifying potential hurdles along the way ( if you plan to develop it yourself)
However, you can merely choose to hold the land for some time and sell it off for a huge profit
But first thing first.
Determine if there is a market for land (to live or work on) in that area before buying it and most importantly, for safety’s sake, you should do your research before investing any money
A simple rule when investing in real estate is : The longer you hold onto it, the more valuable it becomes.
2) Buy a House For Rent
Buying a house for rent is one of many ways to make money from real estate in Nigeria.
If you have the financial hitherto, buying a house and renting it out is probably a good bet. It’s really easy – but there are some risks involved if you get it wrong.
First off, make sure you buy your rental property as an investment and not with any idea of living there yourself!
You don’t want to be liable for paying bills and repairs on a place that isn’t your home
If you buy a house for rent and it is located in an area where there are many professionals working, you will have enough tenants to pay your bills.
However, you should try your best to make sure that your property is very comfortable so that tenants will not think of leaving.
After purchasing a house, you can easily make money from renting out apartments or simply selling them off after a few years.
3) Start A Rental Agency
In Nigeria, it’s getting harder and harder to find a place to rent as many people are now forced to rent instead of buying their own homes.
As a result, Renting is becoming an increasingly hot market
So if you want to make money from real estate but aren’t ready to take on development costs, starting a rental agency may be your best bet. It is one of the cost-effective ways to make money from real estate in Nigeria.
There are many people who move from one place to another, either because of a job relocation or for other reasons such as marriage or schooling abroad.
A reliable property manager can be an excellent help for these people. This is just one reason why you should consider starting a rental agency.
The list of reasons does not end here; it is really limitless. In fact, there are some agencies that have been able to become multi-million naira businesses today, owing to their profitability and reliability.
I should also remind you that starting a rental agency will require a little legwork.
Here’s what you’ll need to do: Identify an area that doesn’t have enough rental agencies, get accreditation and start marketing to individuals looking for homes.
Be sure to promote yourself as a professional renting company.
Once your business is set up, find potential renters (preferably ones with good credit). Screen them based on your requirements and then provide prospective clients with information about your available units.
Get your tenants and make money from Real Estate In Nigeria today!
4) Offer Home Maintenance Services
Home maintenance service is one of the smartest ways to make money from Real Estate In Nigeria.
Whether it’s home repairs, yard work, or even a whole makeover, you can start your own home-improvement business to help homeowners increase their property value.
And if you already live near them, keeping costs low is one of your advantages over competitors. It’s important to be sure you have business insurance so if anything happens onsite (i.e., an accident), you’re covered.
But aside from that, just make sure they sign a contract before anything starts so there aren’t any mishaps down the road.
So basically, working with people who have a house to maintain is a great way to make money. Of course, you’ll need to have some knowledge of either landscaping, painting, carpentry, or others.
Not only will these skills help you finish projects better, but they’ll also open up opportunities to build on what customers want when they call you back for another job.
5) Work As a Real Estate Agent
Real estate is one of Nigeria’s booming industries, and if you know what you’re doing, it could be a great way to make money.
The real estate business typically goes hand-in-hand with development, meaning that you might want to consider having enough start-up capital running into millions of NAIRA
But of course, getting started in real estate doesn’t mean you have to sell your own property yourself or buy one with your capital
That’s where a real estate agent comes in
Working as a real estate agent in Nigeria can be a very lucrative business and one of the ways to make money from the Real estate in Nigeria
The real estate market is growing at an accelerated rate and many businessmen have started acquiring multiple properties.
This is mainly because they see that it is a great source of revenue generation.
However, just like any other business, if you do not know what you are doing, then you will end up losing money instead of making it.
As real estate agents, these investors who have no in-depth knowledge about the industry but are interested in investing in it are your target audience.
You help them buy, sell and even develop properties. It is highly profitable and requires lesser capital to get started with
Here is a detailed post on becoming a real estate agent in Nigeria.
6) Buy Properties at Undervalued Prices
One of the best things you can do to make money from real estate in Nigeria is to buy properties at undervalued prices.
Most Nigerians are very excited about the property, but they often feel that it’s too expensive to get started. This is an understandable misconception, But it’s also important to remember that you don’t need to buy anything extravagant or multi-million-dollar homes for there to be substantial profits involved.
In fact, it may even be better if you look for something affordable—the lower your initial investment, even better!
You can find deals on real estate in Nigeria that other people do not see and invest at undervalued prices, buy out of foreclosure and rent it out, or even flip houses as a way to make money from real estate in Nigeria.
Finding new properties will always be your best bet to earn more money because you are investing in something that is still appreciating.
It’s therefore important to know how to find properties that will hold their value in a tough market if you’re looking to make money from Real Estate In Nigeria
7) Lease Out Your Homes
One way to make money from real estate in Nigeria is to lease out your home.
Like investing in foreign currency, this isn’t necessarily an easy strategy to execute, but it can be rewarding if you do your homework ahead of time.
The first step is finding a renter that wants and can afford your home. Those who already have a good understanding of Nigerian real estate will be well-positioned to succeed at leasing their homes out.
You can earn a lot of money by letting out your homes to tenants. In fact, many people often complain that they have no space to live in their houses because they have let them out to tenants.
If you are not comfortable with renting out your property and do not want any unnecessary baggage from your tenants, then you may be interested in finding alternative ways of earning money from Real Estate In Nigeria.
One of such is through leasing out one of your rooms and keeping it for yourself, which enables you to make use of it whenever you are free to stay over; or renting it on an hourly basis if you plan on running a home-based business from home.
The opportunities are endless! Start Leasing Out Your Homes!
8) Invest in commercial property
If you’re serious about making money from real estate in Nigeria, consider investing in commercial property. Many Nigerians are looking to sell their homes and rent offices instead.
This has opened up a huge niche for businesses that can offer flexible office solutions and build to suit services.
So investing in commercial property is one of the best ways to make money from real estate in Nigeria.
This can be done by investing your money directly into a commercial property or you can use leverage by taking out a loan and using that to invest in commercial properties.
The key is not letting your investment become someone else’s liability. There are three main areas of focus when investing in commercial property: purchase, management, and sale.
If you manage these three areas well, then chances are high that you will have success with your investment.
Your biggest challenge may be finding investments that meet your criteria for what makes a good deal; there are plenty of opportunities out there if you know where to look!
Moreso, there’s no shortage of need for commercial space in Nigeria so investing your money here is probably a good idea, especially if you have expertise or know-how that can make you stand out from competitors.
Another way to invest in commercial property is by buying shares in an already established business park. You’ll be entitled to receive rents and benefits according to the percentage of shares you own and as the property becomes more valuable, so will your share price.
9) Get Into Real Estate Development
Real estate development is a great way to make money from real estate in Nigeria.
There are so many ways to get into real estate development, including buying old houses and building new ones on them or buying land for future development.
Real estate developers may also design property plans and use their professional networks to find buyers. Regardless of which approach you take, real property developers will make good money from real estate in Nigeria.
If you’re looking for more stable investments that offer long-term growth opportunities with little risk involved, consider partnering up with others who can help with funding or look into investing in companies that own real estate assets.
The main disadvantage of real estate development is that it takes time and HOOOGE capital to start a project.
However, if you’re interested in flipping properties or know someone who can help you get started, real estate development can be an excellent source of income for many Nigerians living abroad.
FAQs About Making Money From Real Estate In Nigeria
Making money from real estate isn’t as easy as it sounds. There are various legal hoops to jump through, many unexpected surprises, and a variety of pitfalls that make it difficult to be successful in your endeavors.
But is it impossible to make money from Real Estate?
Of course not, as you already know, real estate is a multi-billion naira industry.
So the above list of 9 ways to make money from real estate in Nigeria is some of the most effective ways you can do so.
The fact is, however, that there are other ways you can go about making money from real estate in Nigeria. We just wanted to show you some of our tried and tested methods here.
Remember that it doesn’t matter how many or what type of investment options you use; your success ultimately depends on how well prepared and dedicated you are!