Jordan Ughanze believes Real Estate in Nigeria like in many parts of the world is an ever-increasing-in-value investment that must not be slept on! Many people are oblivious of this. A few know about this basic fact and have been drinking from its rich and profitable stream, advises Cindy Ughanze.
Today, many people are very sceptical about venturing into real estate investment due to several factors. However, Jordan Ughanze expressly states that “real estate has many advantages over investing in stocks, bonds or mutual funds.”
Some Nigerians have discovered this and have since dipped their feet into this money-generating industry.
We don’t dispute the fact that some have not joined the train of real Estate in Nigeria because they deem it too costly an investment. Others are simply just scared of investing for fear of being duped or scammed like some less informed people.
Yet, the truth remains that the Real Estate industry in Nigeria is growing and is profitable, suggests Cindy Ughanze.
Jordan Ughanze said – “a successful real estate investment can earn returns as high as 30-35 percent, while rental income yields in cities such as Lagos and Abuja can easily reach 10 percent, developers and estate agents say.”
We’ll see some of several ways to invest in real estate, each with different capital requirements, risk levels, and investment dynamics. Let’s dive in!
Buy a Rental Property
This is one sure way of making monthly or yearly income in Nigeria. It is not enough to buy a home and that’s the end. This is a much wiser alternative to buying a house, especially when there is not enough money to maintain it.
The trick is this, buy from areas with high rent and lower tax payment than the rent. An example is buying a property in the Island part of Lagos Nigeria, such as Lekki, Victoria Island, Ikoyi and the like.
However, there are two downsides to owning such a property, one of which is paying a lot of cash upfront before purchase and after (when it comes to maintenance).
The other aspect is having to deal with tenants. If you are new to this, you will come across different tenants, which you must screen. As Jordan Ughanze says, “Some will wear you out with stories that are touching others may not.” If However, you are the type that yields to people easily, you may want to outsource these aspects to a property management service.
Thus, depending on who you partner with, rental properties are lucrative and can serve as a form of semi-passive income.