Investing in Nigeria’s real estate is more than just a financial decision. It is an opportunity for foreigners and Nigerians in Diaspora to create an additional source of income. Build strong financial stability. At the same time, build generational wealth in a country where the demand is very high. For Nigerians in Diaspora is an additional opportunity to secure a retirement home as well as maintain a lasting connection with families and friends back home.
Whether you live in any part of the world, be it in the United Kingdom, the United States, Canada, Germany, Australia, or be a Nigerian. Nigeria’s real estate market offers opportunities to build wealth through property ownership. Be it land, residential building, rental apartments, commercial buildings, short-let/Airbnb business, joint venture(JV) developer, Agro-farming, or off-plan property development.
In this article, we will explore how diaspora investors can make money in Nigerian real estate genuinely & seamlessly, and the various investment opportunities worth considering.
However, despite the profitability of Nigeria’s real estate market, many investors over the years have lost millions of Naira and have fallen victim to fraud and scammers, which often are caused by greed, lack of due diligence, cheap properties (property below market value), untrustworthy agents, trusted family members, and old friends.
Stories of fraudulent property transactions, property demolitions, non-allocations of plots, disputed land ownership, abandoned building projects, inflict of property prices by untrustworthy agents have made some diaspora investors became precautious investing in Nigeria’s real estate. And these are valid concerns.
The good news is that, these negative challenges and experiences can be averted 100% with the use of experienced reliable real estate consultant, proper legal due diligence, and a register surveyor. But many times, buyers will not want to engage the services of these professionals independently, probably because some investors did not understand the important of these professionals.
PROFESSIONALS NEEDED FOR SUCCESSFUL TRANSACTION
As a diaspora investor, you need these key professionals independently in order to make a safe and seamless real estate transaction successfully. Also, you don’t necessarily need to live in Nigeria to own/buy profitable real estate investment here. All you need are these 3 key professionals independently.
- Real Estate Consultant firm: the primary duty is to get you a genuine desired property with a good title document that meets your budget. At the same time, follow up to make sure that your property is delivered to you after purchase.
- Lawyer (Attorney): he/she uses the property document, conduct a due diligence in respect to government compliance on behalf of the buyer before the purchase. Sometimes, he/she may need to prepare a new legal document (deed of transfer) for the buyer during payment. Have a meeting with the seller and visit the property for inspection. The primary duty is to verify the title documents, history of the property, property dispute (if any), and true ownership before payment is made.
- Registered Surveyor: he/she visit the property location and collect the site coordinate aimed at verification at the survey general office in compliance with government guidelines. The works of the Lawyer and the surveyor are expected to go on concurrently. And this takes between 48 hours and 5 working days.
NOTE: When budgeting to purchase a property, you need to factor-in the professional fees for these independent professional, the fees are always negotiable. We also advise investors to have a permanent consultant, lawyer, and a surveyor for all your property investment journey. This help to guide you properly and avoid mistakes in buying properties with issues.
Meanwhile, test their credibility and reliability as you make your investment journey with them. Don’t jump from place to place looking for some cheaper offer that can get you scammed.
AS AN INVESTOR HERE ARE THE DIFFERENT INVESTMENT OPTIONS AVAILABLE FOR YOU TO MAKE MONEY THROUGH NIGERIA REAL ESTATE
There are different ways you can invest and make huge returns in Nigeria real estate, and this depends on your investment goal, how much capital you have, timeframe for the investment, and risk level. Let’s explore some of the available options:
- BUYING OFF-PLAN PROPERTIES:
This type of investment helps the investor to buy a newly built residential or commercial building during the launching stage or the construction stage at a pre-launch price(reduced price) with a flexible payment plan of 6, 12, and 24months, as the case may be and sell after completion within the period of 12 to 24 months at a higher price and make huge profit. This often work best for foreign investors because of the money laundry issues in different countries, also gives them opportunity to spread payment without financial stress. The expected capital investment ranges from 50 million to 800 million Naria depending the type of building.
Often times, a lot of developers have delayed the delivery timeline, built with inferior materials or have failed to deliver the project. And these have made a lot of investors to be more caution in investing in an off-plan properties.
In other for you to make a profitable good off-plan investment you need a well experienced real estate consultant that will transact with you both on the buying process and during the selling period. The consultant will help you to make sure you are buying a sellable property from a credible developer that have multiple of realtors and financial investors that will put money into the project. A developer that has good past record and has delivered several projects in the past at a specified period. A developer that builds quality and spacious houses.
He/she should know the best location that suit your budget and expectation at the same time the possible return on investment after period of purchase. Your well experienced real estate consultant will help you to buy a profitable property according to your financial goal, budget and make sure your property is delivered to you as promise.
If you need a reliable real estate consultant, fill free to connect with us. We will be delighted to do business with you. We will guide you and make sure you get genuine real estate deal and property delivered to you after period of purchase. We have helped a lot of investors acquire genuine profitable deals over the years, and the evidence are all over in our social media handles for your viewing.
- INVESTING IN AGRO-FARMING:
This type of investment allows investor to invest in a farmland in acres or hectares, either with the option of cultivating it by themselves or the company cultivating and managing it for them while the enjoy the profit after designated period. This comprises different type of farming such as, coconut, rice, livestock, palm trees, maize etc. The capital investment ranging from 5 million to 50 million Naira.
In other to make a good Agro-farming investment is important you commit your money to company that are well experience in Agro farming and have actually proven trustworthy. At the same time, make sure you read the risk involvement before investing.
The profit on investment actually commences within 1 year to 4 years after investment depending the type of Agro farming investment. To get more information about current available Agro-farming investment opportunity click here.
- INVESTING IN LAND BANKING:
This type of investment allows investors to buy some potion of land in a promising location (like Ibeju Lekki Lagos) and leave it for a long period of time to appreciate in value. This is good for investors who want long term investment of 10 to 20 years. One of the disadvantages of this type of investment is that is not easily re-saleable when you need urgent money to take care of personal need.
Secondly, you get to tie funds down when you can actually make money while waiting for that long. Thirdly you are at the risk of government revoking the land if there is no development on the land. The best practice is to buy a genuine title land.
- REAL ESTATE CASH-BACK (SHORT-TERM INVESTMENT):
This type of investment allows investors to buy some potion of land from a real estate development company within a short period of 3months to 24months, and sell back to the company with interest after the duration. The investor has opportunity to make between 9% to 95% profit after sales depending on the amount and duration of subscription. The expected capital investment is minimum of 1 million to as high as 500 million Naria.
For over 6 to 7 years many investors terms to prefer this type of investment over land banking investing because of its profitability and quick returns.
However, in some recent time, many real estate companies have not been able to pay the expected interest and capital after the duration of transactions. Some end up giving the landed property to the investors permanently, while some could neither pay or give the land to the subscribers.
In spite, of the negativities, some companies have over the years maintain their integrity, paid all their investors and keep the business floating. As an investor, ensure you invest in a company that have credibility, multiples of realtors, saleable off-plan building projects, pool of investors and has maintained their pay out for over the years. Click here to read more about Real estate cash back. You can also connect with us, we have credible real estate developers that have proven trustworthy to invest with for over 6years.
- BUY TO RENT / LEASE
This type of investment allows investors to buy either residential or commercial building for the purpose to have something that can give him/her recuring income permanently even at old age. However, profitable rental investment varies between location, demands neighbourhoods, streets, buildings, and property types. This involves either purchasing a newly built, off-plan or old building lease it out or rent it. Expected capital investment ranges from 50 million to 400 million Naira depending on the type of apartment or building.
Before investing in this type of investment, you need to consider your capital strength, the type of property you which to invest, also investigate the rental profitability and the high demand of it. Some rental property stays close to 1 year and still NO occupant, NO demand. Don’t be move by high rent alone, but rather by high demand. There are a lot of properties on the Lagos Island that have remained vacant for over 2 years.
Below are the type of rental/lease property you can consider:
- Student school hostel
- Residential apartments and duplex on demanding location.
- Commercial building, shops, office space, warehouse and malls on attractive location.
- Empty commercial land in strategic location for long lease.
Check out some available property you can buy for good rental purpose…
- B O T (BUILD OPERATE TRANSFER) INVESTMENT:
This type of investment is often not common, but is also a good profitable investment. Is where the owner of a property no longer has funds to complete its personal building project and seek for investor that can finish the building and Put it out for rent, thereafter the investor will gain his/her capital and profit after agreed years of collecting rent from the property. The expected capital investment ranges from 30 million to 200 million Naria depending the type of building.
This type of investment is advised to be done in a location where rental profit is guaranteed. Example of location like Lagos with high demand of rental property. You will also need to consider a lots of factors like property document, building construction, government interest, expected amount to put in, and expected amount of profit within the first 5 years. Check out available BOT INVESTMENT.
- SHORT-LET/AIRBNB PROPERTY INVESTMENT:
This type of property investment is another lucrative investment, that gives investors opportunity to earn daily instead of yearly. Is where investor purchase a property in a good short-let location and furnished it. He then gives it to short-let managers to mange it for him/her. The expected capital investment is 100M to 500 million Nigeria.
This type of investment has recorded a lot of profit as well as lost. Also is a seasonal business. As an investor, is advice to always study the business before investing also consult experienced short-let managers within the location of interest for a proper break down on profitability and risk involved. Service estate is best for this type of invest.
Check out some short-let apartment you may be interested in…
- JOINT VENTURE (J.V):
This type of investment requires a huge capital, is where 2 individual or companies comes together to own a building project. One person owns the land while the other finance the building project. After that, they sell out and share the profit. This type of investment is mostly common in Lagos and Abuja real estate. The profit is very high. The expected capital investment is from a billion Naria upwards.
As an investor, we advice you work with a reputable real estate developer that have multiple of reactors that can sell the property within a good period of time, so as to be sure of your return on investment. Also do your background investigation before investing. Some J V have failed over the years, while some have made good profit.
If you need J V request, send us a message
- PROPERTY FLIPING (BUY RENOVATE AND SELL):
This type of investment allows you to buy an old building or building that was fairly used at a distress sale (reduced price) then renovate it or fix somethings on it and sell it at a higher price. The estimated capital investment is between 80 million to 500 million depending on the kind of structure, location and nature of the building.
For a diaspora investor, this type of investment requires you to be more careful as not to buy building that is already sinking, property that have dispute or with document issue. Most of these type of properties always come with one issue or the other.
A practical solution is to engage a trusted professional, know the best location for it, and do your math in terms of expenses and profit. Best suited for investors with a strong understanding of property values, and access to reliable local professionals.
If you interested in property flipping send us a message we do have some time to time.
