How to Find Real Estate Investment Opportunities in Nigeria
Investors are still in the business of actively investing in real estate properties irrespective of the rise and fall of the market, they stay committed and diligent to their investment plan. They are always following the real estate trends in order to seize opportunities and zero in on the ones that people seem to ignore.
This article promises to highlight the different approaches you can use to find real estate opportunities irrespective of your position in the real estate cycle. You will continue to build wealth by building the right relationships, looking at the right places and meeting the needs of the seller. Doing all these will help you to minimize risk.
Is it Too Early or Too Late to Invest at this Time?
Some people are not sure if now is the right time to invest. They fear that as time passes by, the cost of real estate investments becomes unaffordable. Some investors feel they need to wait for a certain time before they can invest.
Intelligent investors consider higher-risk lending in real estate, debt financing and a lot of irregularities that may be happening in the real estate market but it does not stop them from hunting for good deals in the local market.
The 3 Biggest Benchmarks to Spot Real Estate Opportunities
- The decline in the Home Ownership Rate
There has always been a major change in the rate of home ownership and some homeowners are now tenants under other homeowners. This is as a reason for relocation from city to city. Some people, for example, have moved from the northern part of Nigeria to the western part of Nigeria to start their life all over and as such, they had to sell their homes urgently at a “not good enough” rate just to rent an apartment in another city.
Overpopulation, especially in a city like Lagos, creates rent growth and the pressure on apartment occupancies goes up. Having this knowledge might urge your sense of investment to make a wise decision towards having office buildings or even multi-family apartments in major areas in the city. Making these investments due to the research you have carried out can help you grab the opportunities lying around the real estate market.
- Growth in Population
As said earlier, so many people are migrating often from one city to another. Lagos is known to be a mega city where a lot of Nigerians migrate to in order to have a better life. These migration increases the population of Lagos, thereby making a good number of people in need of good accommodation. Understanding trends of large population steer investors to buy properties that can create positive cash flow through a never-ending rental yield.
Smart investors are finding several opportunities within the daily growing population, especially in Lagos state so they can build wealth for themselves and have a high return on their investments.
- Job Growth
It is smart to get all the information regarding which industries dominate the area you want to invest in. Making your findings provides an insight into how attractive the areas will be to future residents. The more job increases, the more opportunities for real estate investments.
Some smart real estate investors keep their ears to the ground to take note of which commercial site is set up to run soon which could create a positive influence in the environment where they are situated as well as create massive job employment. Once the information is gotten, these investors start taking the necessary step to invest in properties close by.
- Go to the Local Markets
Go to places where people want to live or aspire to live in. These people might choose a place due to the aesthetic environment that speaks class or they could choose to live there because there are more job opportunities within the vicinity. A lot of people have mentioned that the island in Lagos has much more job opportunities than the mainland and for that, they choose to move to the island irrespective of the cost of accommodation.
Looking further into this, you will discover that people find some places appealing due to cultural activities and attractive outdoor. People also want to live in places that provide a solid road network and a high quality of life. You can bring an old property up to the current standard of the properties around it in order to boost your income. It does not matter what kind of property you invest in but the location and the forecast of a high return on investment matters. You can always fix your property to work for your benefits. Give people what they want and they will help you grow wealth. Many of these neighborhoods can sometimes have a natural geographic boundary that may limit the availability of land which makes you not to make necessary expansions for your property.
When finding real estate opportunities, use the yardsticks provided above but also keep an open mind about what makes an area or an asset unique.
Real estate investing is mostly about creating value. Apart from adding value to properties, you can also add value to sellers, buyers, and tenants in order to get the best deals.
You can put in the best work, build better relationships, and most importantly, knowing when you spot a good opportunity when it appears. Working or partnering with professional realtors can also make this fun for you because they will also be on the lookout for opportunities that you can invest in and yield a good return on your investment.
DPKay Homes is the leading real estate company in Nigeria and we are always ready to have a talk with you in order to put you through every investment process. We have an eye for looking up opportunities that can suit your investment plan. If you want DPKay Homes to work with you through this investment journey, you can set up an appointment and we are ever ready to listen to you and take necessary actions where you want us.