Real estate is a type of property that includes both land and improvements, such as buildings. Assets that can be touched, tangible assets are assets that have a tangible shape and are worth something. Property, plant, and equipment are examples. Fixtures, roads, structures, and utility systems are examples of tangible assets. Ownership of land, improvements, and natural resources such as minerals is established through property rights.
You need to invest in real estate if you’re seeking a method to put your money to work. Such investments are always extremely profitable.
You don’t have to buy a house or develop one to make a real estate investment. There are numerous opportunities in the market.
Real Estate Opportunities You Can Invest in;
1. Leasing of open space
In this case, you purchase land in a desirable area. Earn monthly fees by leasing the land to people for temporary use while you wait for the property value to rise. You may rent it to a church, a mechanic or a car wash, or other enterprises that can build a makeshift building that can be simply demolished when it’s time to sell.
2. Construction of real estate
Property development necessitates a substantial financial commitment. It entails purchasing depreciated homes that you may restore and rent or sell for a large profit. A decent site, as with any real estate venture, is critical if you want to make respectable returns.
Before you invest in property development, make sure that the development expenditures will be considerably surpassed by the property’s asking price after the renovation is completed. So, if you invest 2 million naira on renovations, be sure you can recoup at least 3 or 4 million naira when you sell the house.
3. REITs (Real Estate Investment Trusts)
This is one of the simplest methods to invest in real estate without purchasing a physical property. The Securities and Exchange Commission regulates REITs. They are a type of collective investment scheme in which participants pool their money and use it to buy income-producing real estate. The underlying asset portfolio is managed by a professional whose goal it is to optimize your profits. You own an indirect stake in real estate through REITs on a flow-through basis, which means you own it as if it were a direct investment, and it allows you to invest in non-residential assets such as malls, industries, and hotels.
4. Flipping of land
Another excellent investment strategy is to purchase land and then resell it at a higher price. It’s especially beneficial when you buy in a quickly developing neighbourhood, where you can make up to 300 percent profit in a matter of months, or years, depending on the situation.
You might begin by purchasing only a piece of land. Alternatively, if you have enough money, acquire as much land as you can and sell it all year.
5. Make a living as a real estate agent.
When you become an agent, you will be paid a commission once you have found a buyer for the property. The average rate is ten percent. So, if you find a buyer for a 40 million naira house, you will be paid a 4 million naira commission.
In order to identify buyers and sellers, you’ll need good networking abilities to become a successful agent.
Franchising is a fantastic opportunity to purchase and hold land in a variety of fast-growing areas. It does, however, necessitate a large sum of money.
It’s the same principle that applies when you buy land and utilize it to open a fast-food restaurant. You then go out and buy land in several other locations, construct your structures, and hire franchisees to run the restaurants for you.
It may appear that today’s fast-food businesses, such as Mr. Biggs, McDonalds, Chicken Republic, and a slew of others, are solely focused on the fast-food industry. However, real estate purchase is a significant element of it. Over time, the value of these lands skyrockets.