How to invest in city real estate for maximum profitOluwakemi Adeyemo
Properties of various shape and height dot the landscape of cities Properties of various shape and height dot the landscape of cities in Nigeria. A good number of these properties from my research are either now too big with high maintenance cost and low income or non-income producing.
It is okay to have a gigantic world class edifice. It is then better to have a grand plan in place for its sustainability as well as profitability many years to come. The government usually won’t plan that for you. Hence it is your duty to figure that out.
Investing for maximum profit in real estate in a city like Lagos requires one to stand out. Yes, stand out. Stand out to take your investment journey with deliberate intentions. Do not conform. The democratic system in Nigeria is such that it is easy for a few to get enriched because the majority finds it easier to accept conventions. It takes some effort and grit to stand out. And one of the easiest way to stand out is to get as much actionable education as possible on a subject.
Get as much information before embarking on real estate investment journey.
Another way to invest for the greatest profit is making sure you have an exit plan. Whilst investing in real estate for personal use, paint a picture of when you have advanced in age. Also, bear in mind a time when your children come of age to live on their own. Paint a picture of when that location becomes a commercial area.
Think of how easy it will be to make a decision on that piece of real estate and execute the plan even before investing.
A decision such as transferring ownership right or to remodel a property into an asset producing income in the near future should be part of your plan before you invest in real estate.
The absence of an exit strategy contributes to why many properties have become unoccupied and not producing income yet incurring more cost. Experience has shown that a piece of real estate can become a burden at a certain phase of life.
In recent times, the news about real estate investment especially in cities in Nigeria has increased. I am also making part of the news. In the midst of the trending news, it is critical to take these few tips to heart as you would your paycheck. These tips have proven to work for making maximum profit in real estate investment.
1. Change your perspective about real estate. Pay attention to your real estate like every other thing depends on it. The men who built America had a phenomenal perspective to real estate. Developed nations today, understand the relationship between her human resource and real estate. In the same vein, for personal economy improvement, you must understand the relationship between real estate and you.
2. Ensure you answer why you want to invest. This means having a clear purpose for investing. You could still redirect your investment towards a purpose. I am investing because real estate investment has proven to stand the test of time over hundreds of years. It is the basis for any other form of investment class.
3. Ensure you have a lifestyle goal for years ahead. This helps to fine-tune the purpose for investment. You are also able to know what values to put in place and what to cut. My lifestyle goal in 5 years is to be in a financial position that affords me healthy options to look fabulous, enhance my creativity, profitability as well as productivity and to live each day fulfilled.
4. Determine the cost of your lifestyle goal then work out what kind of property investment helps achieve that. The lifestyle I described for myself above will cost a minimum of ₦10,000,000 per annum. So I need to sweat it out to increase my income, block all leakages, form profitable synergies and continue on personal development.
PS: That a house has not been in use or occupied for years often times does not devalue the land in any way.
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