How to make money from Real estate in Nigeria

Making money from real estate in Nigeria is a very lucrative industry. However, it can be challenging to break into and requires plenty of capital. There are several ways to make money from real estate in Nigeria, including renting out property and selling land for building purposes. This article will go through each method of making money from real estate and how much you can expect to earn from each option.  

House Rental  

If you have a house you are considering renting out, this is an option for your rental earnings. It would be best if you considered all the benefits that come with renting out a property:  

• You will be able to use the rent as a source of income and make money from real estate in Nigeria  
• You can choose whom to lease your property to and when  
• You can use this as an investment opportunity because rental rates tend to rise over time  

Real Estate Investment Trusts  

REITs are managed by professional managers and have their boards of directors. They invest in real estate projects intending to generate income for investors.  

The first REIT was launched in the United States in 1961, but it wasn't until after 2000 that it became popular worldwide. Today, there are more than 1,000 REITs listed on exchanges around the globe and 636 billion USD in them globally as of May 2019 (source: UNCTAD).  

There are currently two listed Nigerian REITs in Nigeria: Skyline Property Fund Plc., which was listed on the Nigerian Stock Exchange (NSE) in March 2016, and Skye Property Finance Limited, which was listed on NSE's Alternative Market effective July 2019.  

Building a House (and Selling it)  

Building a house can be a good way to make money. First, however, it's essential to know that you need to find the right location for your house and the right contractor (or contractors). If you don't do this, then building your own home could cost you more than you would if you hired someone else to do it for you.  

If everything goes well, then not only will your house look great and be worth a lot of money, but there will also be renters or buyers who want what they see in front of them!  

Buy Land, Build and Sell Houses  

There are three basic steps to making money in the real estate industry, and they're all pretty straightforward.  

• Buy land.  
• Build houses on the land you bought in step one (or find someone else who will).  
• Sell the houses you built in step two after they are completed, or find someone else who will do this for you (or both).  

Property Flipping  

• Investing in a property without knowledge of what you are doing is not a good idea. It is better to learn the business before jumping in and approaching real estate as an experienced investor.  
• If you have a partner or two who can help you with the business, that would be even better. The more people working together on this venture, the less likely it will fail—and if it fails, at least there are other people to share responsibility for it!  
• You should also know about finding good deals on properties; for example, if someone has foreclosed on their mortgage payments due to a lack of funds, they may be willing to sell their home at half its actual value because they need cash immediately!  

You can make a lot of money from renting out houses.  

In Nigeria, a house's average rental fee can be between N500,000 and N700,000 per annum. Considering that there are 52 weekends (including public holidays) in a year, it means if you rent out your house to someone on a monthly basis, you're going to earn about N300k at least.  

So how much is this going to add up? If we multiply this number by 52 times 12 months, we get 784k, equivalent to $1200 at today's exchange rate (Thursday, 06th, 2022). Not too bad, right? You can make a lot of money from renting out houses, but finding the right tenant for your home is the trick.  

Conclusion  

There are many ways to make money from real estate in Nigeria. I hope this article has helped you understand some of them and given you some ideas for getting started with your investment. If you are still unsure which option is best for you, remember that every person's situation is unique, and there is no 'one size fits all solution. You should always research before deciding on an investment strategy—and remember that patience pays off!