For most individuals living in Nigeria, a 9-to-5 white-collar job does not begin to cover necessary costs. This causes individuals to search for other sources of income, either passive, by investing, trading, or real estate. In the course of this article, real estate Investments will form the center of focus.
Real estate Investments in Abeokuta do not exactly work in one set pattern. How an investment method works depends on the form of real estate investment in question. And this will be explained further in the course of this article. With our main focus on how real estate Investments work in Abeokuta, let’s first consider lucrative ways you can invest in real estate in Abeokuta.
4 Lucrative Real Estate Investments in Abeokuta
1. Property Development
This is a rather common form of real estate investment. Property development here entails the buying of a property in a desirable part of Abeokuta, with all the good amenities, then revamping the property to up its market value and putting it up for sale.
2. Rental Properties
Another known real estate investment is in the form of rentals. This involves you owning property and putting it up for rent. With this form of real estate investment, you bear all or most of the maintenance costs. Although this is a source of steady income that presents the property owner with opportunities to increase the asset value, it has its downside. However, in a situation where you have tenants that are unable to pay their rental fees or no tenants at all, you could run into negative cash flow.
3. Trusts in Real Estate Investment
REITs (Real Estate Investment Trusts) are a less-known form of real estate investment in some parts. As is the case with investment in stock and trusts in other sectors, REITS are a form of stable income. And rather than make direct investments in real estate stocks, you can purchase REITs that have better liquidity in comparison. In addition to this, they diversify one’s real estate portfolio and are a solid investment.
4. Land Flipping
With less effort than is needed for rental properties, you can invest in land flipping. This form of real estate investment involves you purchasing a piece of land in a choice part of Abeokuta at a price, letting its value appreciate, and selling the plot. Several acres of land under your belt would look great for your real estate investment portfolio and these can generate over twice the initial cost of investment.
How to go about Real Estate Investments in Abeokuta
- If you are interested in property development, you would first have to engage in ample research for locations with high market value or such potential. Next, you might want to get yourself an investor who would foot some expenses. Lastly, you would need to actively relate with other property developers. In some cases, you would need to work with a credible real estate agency within or outside Abeokuta.
- For a successful investment venture in property rentals, engage in active research. When you have a choice property/building location in sight, make necessary developments. The next step would be to fix a rental fee in line with data from the “Rental Market Trends” and put your property up for rent.
- Like other stocks and trusts, you can purchase Real Estate Investment Trusts legally from the Nigerian Stock Exchange or a credible stockbroker.
- To engage in house flipping, you have to acquire a property that is close to the desired product. The property you purchase does not have to look exactly like what you desire – having the necessary amenities would suffice. With these in place, you can proceed to revamp. To flip properties in Abeokuta, ensure that you have all planning complete and a credible consultant. A professional consultant would prove extremely helpful in exposing you to the rules regarding property flipping in the locality among other details.
Wrapping Up
Investments in the real estate sector can either be a source of passive income or active income for you. It is now known that Abeokuta stands as one of the choice locations for real estate Investments in Nigeria. Depending on your budget and convenience, any of these four abovementioned investments would yield profit. However, you must ensure that you have all documents where required.
