Real estate business

Posted by Felix Okoli on Thursday April 5, 2012 11:8:47:

If you are a landlord in a big city, you already have what many Nigerians are dreaming of having - a house of their own.

Real estate business is about investing in housing and lands in order to profit from rent or capital gain. There are quite a lot of people who make good profits from this sort of business as all they do mostly is collect rent or just sell their investment.

Having a house is no little acheievement because a lot of people live as tenants for most of their lives. Building a house, no matter how small can cost millions or close to it and it is quite different from having a land.

As Nigerians, most people have ancestral land and it is quite a lot but building houses on them is not easy and that's why you see a lot of undeveloped land.

2 ways to make money from real estate:
- Rent
- Capital gain

You can either buy land, wait for it to appreciate and then sell it for capital gain or you can rent it out and collect rent on it for an agreed period of time. If you are able to develop the land by maybe constructing a building on it, the value appreciates and you can make more from it by either renting it to tenants or just selling it out rightly for more gain.

There are lots of people who do real estate business for a living, especially in big cities like Lagos and Abuja.
It requires having capital, knowing when to take the opportunity and having patience to watch your investment to grow