5 Best Ways to Invest in Properties in Nigeria

5 Best Ways to Invest in Properties in Nigeria Buying and owning real estate is an investment plan that can be both substantial and lucrative. Unlike stock and bond investors, prospective real estate owners can use leverage to buy a property by paying a portion of the total cost upfront, then paying off the balance, plus interest, over a period of time. Major Facts • Aspiring real estate owners can buy a property by using leverage, paying a portion of its total cost upfront, and paying off the balance over time. • One of the primary ways in which investors can make money in real estate is to become the landlord of a rental property. • A real estate developer is a person or company responsible for building or renovating homes, offices, retail centers or industrial sites. These projects can take vacant land or obsolete buildings and turn them into new businesses and homes • Real estate investment groups are a more hands-off way to make money in real estate. • Real estate investment trusts (REITs) are basically dividend-paying stocks. 1. Rental Properties Having properties for rental purpose can be a great opportunity for individuals who have do-it-yourself (DIY) renovation skills and the patience to manage tenants. However, this strategy does require substantial capital to finance upfront maintenance costs and to cover vacant months. 2. Real Estate Investment Company Real estate investment companies are ideal for people who want to own rental real estate without the hassles of running it. Investing requires a capital cushion and access to financing. In a typical real estate investment, a company buys or builds a set of apartment blocks or condos, then allows investors to purchase them through the company, thereby joining the group. A single investor can own one or multiple units of self-contained living space, but the company operating the investment group collectively manages all of the units, handling maintenance, advertising vacancies, and interviewing tenants. In exchange for conducting these management tasks, the company takes a percentage of the monthly rent. 3. Property Developers The straightforward definition of a developer is a person or company who agrees with the land owner to build structures on their land without paying for the land and collect rents for agreed number of years before handling over the property back to the land owners. A developer adds value to land or property. By adding value, a developer can extract a profit from development of prpperty. 4. Real Estate Investment Trusts A real estate investment trust is best for investors who want portfolio exposure to real estate without a traditional real estate transaction. 5. Online Real Estate Platforms Real estate investing platforms are for those who want to join others in investing in a bigger commercial or residential deal. The investment is made via online real estate platforms, which are also known as real estate crowdfunding. This still requires investing capital, although less than what's required to purchase properties outright.