How Much You Can Make In Residential Real Estate.

 How much can i make in residential real estate investment? this often appears to be one of the numerous questions we get on a daily basis in our blog pages.

Today's post on Gaddeva REB blog. we will take some minutes to feed you on everything you need to know about residential real estate investments. how to increase ROI ( return on investment) margin on real estate residential building. make huge net profit more than your normal  9 hours job.

Residential real estate is a process of land development by building houses for people to stay. home is the basic need of man, providing homes for people is the greatest investment one can go into. building and selling is an aspect of real estate lucrative investments many people wants to venture into due to high  net profit margin.

Stay with us as we share deep experience/secret of real estate residential building and how much you can  make in residential buildings. how to pull out huge stream of cash flow no matter the economic situation. home building is a very structured business that will never make you to regret or lose your capital. 

After reading this post you should have a knowledge to build, manage and market residential building for highest ask price.

TABLE OF CONTENTS

✒ Real estate residential building.

✒ Types of residential building.

✒ How residential real estate builders make money.

✒ How to become residential real estate investor

✒ Conclusion.

Real Estate Residential Building

Residential building are buildings set aside exclusively for domestic use. in real estate business some group of contractors or Engineers comes up with hectares of land to build homes in small and big scale patterns for renting or selling purpose. that's the key note on residential real estate. 

Residential building refers to homes that are developed by an investor and inhabited by tenants on a lease or other type of rental agreement. Residential property is property zoned specifically for living or dwelling for individuals or households; it may include standalone single-family dwellings to large, multi-unit apartment buildings.

Residential building may be contrasted with commercial rental property, commercial rental property is instead leased out to business owners for commercial purpose while in residential building is zoned for human inhabitant. 

Residential building is the beauty of a city because it designs the settlement nature of the city and infrastructural development of the city.

Types Of Residential Building

The amount of money you want to invest in real estate residential building determines the type of home structures you would build with aim to sale or rent. although it solely depends on the market and your investment capital as said before.

There're many type of homes, sometimes we usually make careless statements like" we have homes and house" the statement is always use to differentiate the type of luxury you can feel in both. in a way of mocking some persons for living in the low class zones.  

Nevertheless, for investors there are several types of residential building with respect to market choice/ the available capital for building, you can check in our other post for real estate market analysis to know what the real estate market is all about. why you don't have to build anything, anyplace and anytime if you're an investor who value your invested capital to recycle in due time.

Here are some types of residential building you can start today to make money on real estate building investments. with their pros and cons as a criteria to look for before building.

Single-Family Home

Single family homes (often abbreviated as SFH) are homes built on a single lot, with no shared walls. Sometimes there’s a garage, attached or detached. sometimes can be referred as bungalows

Pros    

  

Single-family homes tend to offer more privacy and space than other types of homes, and frequently come with private front and back yards. Since you don’t share the property with anyone else, you are free to express yourself with any type of home design you choose. You’ll also have a more reliable resell value than condos and town homes.  

 Cons

This home type SFH generally requires more maintenance, and all of the cost for that falls on the shoulders of the homeowner. With condos and town homes, you share the costs involved with yard maintenance, plumbing, roofing and building amenities.

Townhouse/Hostels

Townhouses are  hybrids between a condo and a single-family home. They are often multiple floors, with one or two shared walls, and some have a small yard space or rooftop deck. They’re generally larger than a condo, but smaller than a single-family home.

Pros

Town homes/hostels often have more privacy than a condo might afford. Some have HOAs or joint maintenance agreements to share upkeep costs. They tend to be more affordable than a single-family home.

Cons

Town homes don’t usually have shared amenities like a gym or a pool, they’re not as private as a single-family home and not that luxurious generally as regards to space and maximum home comfort.

Condominiums

This is another type of building structure that's mostly built by investor for sole aim of renting it out. 

Condominiums (condos for short) are single units within a larger building or community. Condos share a wall or two with other units, and generally come with homeowners’ associations (HOAs), which require the residents to pay monthly or yearly dues. They are popular in urban, high-density areas, where there are many restaurants and shops.

Pros

There is minimal responsibility on the homeowner’s part to contribute to maintenance and upkeep. For example, if the roof goes out, you share the costs with other residents instead of paying for the whole thing yourself. Additionally, some condos offer gyms, lounge areas, pools and other amenities that you might not be able to afford or have space for in a single-family home

Cons

Condo homeowners’ associations often limit the types of remodeling you can do, and there can be pet and rental restrictions as well. HOAs want uniformity and safety; you don’t want one homeowner replacing doors and windows if they’re not to a high standard, or safely installed! In addition, because you share a space with others, there’s not as much privacy, and you need to be extra cautious of disturbing your neighbors because they are so close.

How Residential Real Estate Builders Make Money.

Here's the main topic on this blog post, read carefully now because you will find your answer on how much you can make in residential building.

 with the above knowledge about real estate building property. the most interesting lessons you can grab for yourself is the market value of the real estate building. any investor with intentions of building is always eager to have double the initial funds invested either by selling the building or renting for annual residual income.

This process of making money sound so slow to some persons but it actually worth it . we all know it takes months sometimes years to raise a building depending on the type of building you want to build. then waiting for years to recover your initial invested cash not to talk of profit. isn't that a boredom process of making money?

It worth the endurance and slow cash flow mechanism trust me. it truly worth before because the building will be there forever till your grand children are born to take over and continue receiving money from the property. that's one of the most precious gifts to give your children. a cash flow source. to maintain their selves at your absence. 

How can you make the money? okay let's use Nigeria scenario, for example; you want to build a 2 story building, homes to rent. that might cost estimate of 35 million naira excluding land fees. now we assume you have land already to build and you know we can't include land cost because land price differs to land locations.

After the building you might decide to sell it above 50 million naira; that's a fair rate but selling 65 million naira after some time of appreciation on the property is a good plan: it means you sold it at a good rate of 15 million naira return on investment.

Then if you decide to rent; the 2 story building home you want to build will have six flats of 3 bedrooms, you can rent each flat out for 350k-800k naira a year, range depends on location of the building and quality of the building. take for example we rent it out for 350k naira per year. then collecting the rent for the six tenants in your 2 story building is equal to 2.1m naira per annum.

It will take you 17 years to have your capital on investment. that's why we said it's a boring process but after seventeen years it will still be a strong stream of cash flow till your children grows to manage. but the best is to sell it out and recover your money immediately. you can also build condos and rent it out to people who need office space and make your money too.

But here's the secret of the money bag in real estate residential investment. the gurus in the real estate residential investment known as real estate developers, plays the game in different way to make money beyond your imagination because they have wide knowledge in the business.

 A real estate developer buys a land, maximize it's value to appreciate, They do this by building separate dwellings and subdividing them, so they can be sold as separate dwellings. They understand the real estate laws. developer can maximize their designs and build accordingly.

A successful property developer won’t try to fit a square peg into a round hole and develop something that has too many unknown variables. It’s a step by step process that if followed correctly, will result in a tidy profit. 

That's to say, if you're new in the business instead of building 2 story building in a piece of land, you can redesign the land to contain 4 story buildings separately. in the same land. you might spent 200 million naira to raise twin 4 story buildings separately in your land with measurement of atleast 100x100 feet of the land.

Remember the land is adding value and the building is also adding value. you might decide to sell off the property with land in next 3 years after receiving 350k per annum rent in each flat, don't forget  350k is the lowest a tenant can pay you for 3 bedroom flat in Nigeria.

In order to get a good estimation report we used a figure that looks like a fixed price for 3 bedroom flat annual renting (350K) at any underdeveloped areas in Nigeria. 350k multiplied by 20 flats in total of the twin 4 story buildings. which is equal to 7 million naira per year. 200m/7m = 29 because m will cancel m. that shows it will take 29 years to get back your invested capital.

A smart real estate developer will receive 3 years rental profit from the property. then sell it out on the 4th year. remember the land has appreciated in value and the building also. imagine with the help of a good real estate agent and your real estate marketing skill, you sold the property for 350 million naira including the land.

Okay lets calculate your profit. subtract your 200m for initial building cost and 10m for at least cost of  four plots of  land suitable for such project. you're left with 140m profit. don't forget you collected 3 years rent fee from the same property. i.e 140m+15m = 155 million net profit on return on investment after three years. only few financial investments in the world can provide you such profit margin in 4 years interval. 

  

How to become residential real estate investor

Now is the another big question, how you can become a residential real estate investor or property developer. is very simple get started as a real estate Agent/Broker. you can read our older post on how to become a real estate broker, your expertise practice in the field experience will elevate you to the statue of real estate residential investor and also will help you not to fall cheap to scammers.

Learn and gather as many knowledge as possible because in real estate business, knowledge is not only power but the success secret of real estate business.

Read many books, as many as possible so that you become a smart investor and know your way around all property to increase your profit margin (PM), ROI ( return on investments) and ROE ( return on equity).

 Now you need the most important thing on earth which the holy book, bible described as answer to everything "money"  ❤find your source of capital, very important. either you get a loan or you use other people's money. you can even use your own capital if you have any money not in budget list.

Here's the simple process to follow to start real estate residential building financial investment in Nigeria and any other part of the world as follows below. RREI (residential real estate investment) 

• Earn a degree.
• Get your real estate license.
• Gain experience.
• Build a network.
• Learn how to manage finances.
• Understand your market.
• Understand contracts.
• Consider becoming certified.

Conclusion

How much you can make in residential real estate investment depends on your knowledge, marketing skills, negotiating skill, financial marketing analysis calculations, funds raising ability; that's source of capital, location of the property and above all your management ability in the business to reduce cost of materials for building, cost of labor and management of the most important thing in the universe, time which is equivalent to money. with above factors well considered. you can build an empire around you in the real estate residential investment industry. 

Do you love this post? is there anything you want us to talk about we skipped, feel free to get in touch with us by commenting on the post below. 

Gracias por leer.

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5 Best Ways To Buy Land In Nigeria.

 Table of contents

🔑 Location.                        🔑 Budget for buying land in Nigeria.

🔑 Documentations and agreements of land.      🔑 Real estate Market analysis.                  

🔑 Government land policy.

Land Location

Real estate investments is the top investment platform with the best return on investments in Nigeria, one of the greatest assets in economic history. real estate investments on buying of Land has become a gold mine for Average Nigerians. on this post we will be disclosing the 5 best ways to buy land in Nigeria.

The best way to secure a good land in Nigeria is first to secure a well located area in a strategic position. that's the crucial factor to sought after in buying a land in Nigeria.

Okay, i want to tell you a secret in location of land. most people don't know what's strategic position and why the area is considered to be in a strategic position. when you purchase a land because the area is at the center, well developed, and of course booming. guess what? the land in that industrialized area might have reached it's price peak. for instance, you bought a land that cost 150 million naira at Lekki phase1, Lagos. considering the economic condition of Nigeria and the margin of Rich to poor people, you notice the gap is too high. the buyer will definitely have a problem of liquidating that land asset to have a high margin of return on investments because only 1% Nigerians are willing to buy a piece of land above 150 million naira.

To invest is to allocate your money in expectation of positive return/benefits in the future. it is not wise to buy land in a less developed area. the essence of this post is to unveil the new secret of success in locating a strategic land to buy in Nigeria.

Learn to buy lands with a good road networks, upcoming development and close to concentrated country side. from this description you don't need an agent to tell you that moderate developed area is the best place to buy land investment, if you an entrepreneur who is seeking for huge margin  in return on investments go for moderate land locations, an average Nigerian can purchase and as the market grows so will the land grow in value.

Budget For Buying Land In Nigeria.

This is Africa, Nigeria in particular and in general, you need to budget yourself before investing or you will succeed buying properties for others. budget is one of our 5 best ways to buy land in Nigeria, to enlighten our readers the essence of proper budget before buying land in Nigeria. to avoid bankruptcy and other financial crisis. 

Someone that has 1,000,000 naira as only savings isn't suppose to buy land that cost 800k naira. whenever you buy a land in Nigeria you're likely to pay extra charges like:

• Agency/Broker's fee

• Youth/developmental levy.

• Survey plan.

• Legal fees/Cost of signing documents.

Agency/Broker's Fee.

The Agent can be called a Broker depending, but you can check out for the difference between Agent and Broker in our older posts. here in Nigeria you will need to pay the middle man between the land seller and you the buyer. their fee is always 5% of the land cost. if you can locate the land on your own then you can skip that in your budget. we always advise new investors to go through an agent to purchase their first land property.
 
For example, you bought a land that cost $10,000. the agency fee allocated to that land is $500. that's what 5% means to the agent. if in any case you need help on how to find a good Agent in Nigeria you can read our older posts ro simply click the on the text.

Youth/Developmental Levy

Youth/development levy is a payment you can't skip in buying of lands in Nigeria except you don't want to have full ownership of the land. the developmental levy is just an additional cost incurred by the youth around the area your land is located to enable them note that the land has been sold to somebody.

N/B; the youth/development levy is not asked for or paid by buyers that purchased a piece of land in the urban area. it's always in the rural area that such payments occur. although in the urban area there are other policy fee related to developmental fee. have it in mind that's an additional payment of such exist. in case your agent finds a rural area for you to buy land and the land is strategically located. so you might not bother much if such payment arises because you have budgeted for it earlier on.

Survey Plan

Survey plan is something that must be in your list of considerations before intending to buy land in Nigeria. if you truly want to own a land in Nigeria or you just want to buy land for others. then you consider the cost of land survey.

The survey plan is a process to generate a geographical co-ordinate points for your land and a means to inform the government about that particular geographical coordinates is owned by you being the buyer. you can get a surveyor with the help of your Agent to survey your land for you after payment of the land. 

When your land is surveyed properly, you will never hear things like government has taken that your land area, to build industry or anything at all because government is aware that your land exist and is lawfully owned.

Survey plan, power of attorney, C of O (certificate of ownership) are the basic documents that prove one a rightful owner of a piece of land in Nigeria. and must be properly documented for future reference. so it's always good to have a survey plan that will consider this in your quest to own a land in Nigeria.

Legal Fees/Cost Of Signing Documents.

Never you think the government is happy about that you're now a proud land owner. so in one way or the other, they will come for you. in form of taxes or one ridiculous  reason to bill you over the land. that normally go for 1.5% of the land cost.
Moreover, if you escape legal fees, then you might not escape the Solicitor that signed all the documents concerning your new purchased land. the cost. the legal charges and solicitors fees depends on the Solicitor and your manner of approach to them.
 

So we always advise people to consider making a plan that will inculcate such expenses in your total cash allotted for buying of lands. to avoid solicitors seizing your land documents after payment of land to the seller. making you look like a loser because you don't have any evidence at hand to lay claim over the land if need arise. proper planning of legal fees/cost of signing documents is required to successfully secure a land investment in Nigeria.

Documentations And Agreements Of Land

The documentations and agreements of land is on list of top 5 best ways to buy a land in Nigeria through verification process, signing and change of ownership process between the seller and buyer. is what that makes up the documentations and agreements of land well executed. among the best ways to buy land in Nigeria, this is the most critical and one of the most important aspect because any mistake may warrant losing ownership of the very piece of land.

Take the pain to document every single part of the transactions involved in buying land in Nigeria. Every single part of the deal needs to be documented; from the cost of land to the survey fees.

Documentation is vital for referencing and you should ensure the documents are detailed.

Anyone who tries to sell land to you and is reluctant to show you proof of ownership is as good as trying to sell you a stolen car. Would you buy a stolen car? Documents like the receipt, land survey, Letter of Allocation, Power of Attorney, Gazette and Deed of Assignment must be available. It doesn’t matter if this person is your aunt, uncle or boss at work, a document is a document and there is no substitute for it. A land verification expert/ Solicitor can do this on your behalf. all this long processes is to ensure you avoid a trouble land as much as possible. you can come and use money to buy war instead of assets.

Request For Land Owner’s Documents:

Before you make payment for any land in any location in Nigeria, you should ask for the following documents:

• The Certificate of Occupancy (C of O).

• The Survey Plan.
• The Tax Clearance Certificate.
• The Deed of Assignment.

Never make payment for land without the provision of these vital documents. Don’t take anything for granted because this is one way fraudulent individuals exploit unsuspecting land buyers. Many have fallen victim to this scam and several others have found themselves in court contesting ownership of land that they paid for without following due process.

It doesn’t matter if you are buying the land from a friend or a close relative whom you trust. buying land in Nigeria is a financial transaction and should be treated as such. Always insist on seeing the original copies of the aforementioned documents before buying land in Nigeria. Don’t make yourself an easy target for a scammers.

Real Estate Market Analysis

The market analysis of real estate is one important factor you should consider before securing a piece of land in any desirable location. come to think of it, will anyone buy land that the fifth generation may not find any use of the land? that is to show you that a proper real estate market analysis is necessary as a best way to buy an adequate desirable land in Nigeria.

We advise you to seek an advise of a professional broker or real estate marketers to ask questions about the prospective land property you intend buying. sophisticated real estate investor will never commit that general mistake in the real estate market now, where you give your mom, dad, family relatives to buy land for you. real estate is like other financial investment platform that require you to read the moving arrows if it's red or green indicating go ahead and don't invest. access the market and get your target odd against the market value before buying a land in any place in Nigeria.

 

It all depends on the purpose of buying to decide your choice making in the real estate market. family assets purpose of buying land, don't require much analysis of the current market because the land value will be growing in time. it will always suit the purpose. buying land for business purpose require serious and time confidence in getting your yes right before buying any piece of land.

There's an area if you mistakenly see a land for sale by owners around the area, you shouldn't buy half plot because you will regret when the market appreciates far beyond your expectations. lands according to market value in Nigeria is measured by 100x100 full square feet land but some do measure 100x50 which will affect you when selling resulting to low ROI. 

To buy land in Nigeria now is becoming next gold mine. for those that understand the real estate market. don't buy lands where government have recommended for developmental purpose, don't buy if you see any red flag of the above topics discussed, buy lands that the neighboring land owners around the area are willing to sell to foreign investor that will bring investors to that area. 

Government Land Policy

Government land policy is second to none on our top list 5 best ways to buy land in Nigeria considerations.
Land policy determines the structure and complexion of land ownership, development and use in any society.

Land policy in Nigeria needs to be detailed because it entail so many information and obligations that some times neglected by the buyers themselves when buying land property. but for the sake of common in Nigeria we will be analyzing land policy in Nigeria and what it looks like.

Land policy has been viewed by many authors whom we agreed with as an integral
part of socio-cultural framework of every country. It entails the formation of laws guideline
strategies and tactics of administering land in the body polity of the country. It has legal implication law rules, rules and regulation to fashion out, monitor, land allocation and
ownership. 

Umeh in his report (1983) has described land policy as a set of rules, principles, objectives, or course of action respecting land ownership, land development, and land resource utilization
and further identified seven (7) objectives of land policy namely: 

1. Social justice.
2. Economic efficiency.
3. Social welfare.
4. Political stability.
5. Economic livelihood.
6. Cultural identity.
7. Territorial integrity.

The final thought about government policy on land; try your best to visit ministry of lands and survey with your land property documents to investigate the geopolitical plan of government towards the area your land is located, some legal issues your land might face in the future and try to resolve everything as soon as possible. consider those 5 best ways to buy land in Nigeria listed for you above, understand and apply it in your land investment strategy and you will see yourself getting a good land with adequate security, socio-political insurance, increasing your high chances of ROE (return on equity) and ROI (return on investments).
Gracias por leer.

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Real Estate Market Analysis For Beginners. (REB-2021)

On this discussion class of real estate market analysis for beginners (REB-2021). we will take our time to analyse the real estate market for your consumption with Nigeria as a case study. no doubt that Nigeria is the most populated country in Africa that's known fact. so talking about how sizable is the Nigeria market of real estate business, that little fact has already answered you.

Never mind, we're going in details to study how sizable and profitable is the real estate market in Nigeria. if you have read Rich Dad and Poor Dad by Robert, you will understand that marketing is the greatest financial intelligence skill, one can acquire to build up the assets column.

Have in mind, that the real estate market in any place is always one of the biggest market and most profitable market depending if you can understand the market better in other to harness it massively.

The real estate market analysis that we're about to discuss below, is from the day to day steps we have taken to build our new Agents/Brokers to start accessing the market in Nigeria and pulling out a huge return on investments in the market industry of real estate.

Real estate is a business for everyone, so if you're thinking about the business to do this year and build your desired future. then real estate market is here for you. only stay with us for a short time and you will be able to move to the market and tempt the goddess of good luck.

∴Table of Contents.

1. Why people invest in real estate market.

 2. How to make money from real estate market.

• Risk involved in real estate market and solution approach.

3. Will real estate market go down in 2022?

4. How to invest in real estate market. 

• When to sell from market analysis.
• How to buy a marketable property.

Why People invest in real estate market. 

If you have been investing in other risky investments like stock market, cryptocurrency and you want to diversify. then real estate market should be the best alternative, to enjoy a good rate of cash flow and capital gains on return on investment. 

Real estate market is a great way to diversify your portfolio of investment, you can offset the risk of the money invested in the stock market and by purchasing real estate properties which the investor can liquidate at any time if need because is not good to invest your cash in the market that you will need immediately.

Many people know that real estate investing is very lucrative. for that reason alone, will make people want to get their share of the pie. they know that this is a great way to build wealth, not only for them but they can also pass it down to their future generations.

In addition to having monthly rental home, there are other factors that contribute to why people invest in real estate. some of them include.

• With the appreciation of rental properties, there will be increased value. in turn, this could help with the selling and reinvesting in properties that already have a higher value. appreciation of rental properties can also make way for an equity line of credit for future use.

• Speaking of equity, you as an investor can invest in sweat equity, which involves making improvements to your real estate property. it doesn't have to be so far out where you end up spending a lot money. this can help the value of your property go up faster than it would have if you had not made improvements. so, if you spend $3,000 on cosmetics and miscellaneous items, then the value of the property could be double or more of the amount you spent on improvements.

• Being a real estate investor during inflation times is not necessarily a bad thing. Even though rental payments increase during this time, your mortgage loan payments should remain the same. because of this you can have an increase in cash flow. Another thing about inflation is that you can also gain more renters (if you have vacancies) because some people may not be able to secure mortgages during that time. since you will also increase. this is part of the agenda of supply and demand.

• Many investors love to invest in real estate market because of the longevity that it can be passed down from generations to generations with it's value appreciating instead of depreciating. because real estate assets is the only assets in the whole world that doesn't depreciate under normal circumstance. so that's always enough reason why people invest their capital in real estate market other than other stock exchange, funds share, mutual shares cryptocurrency and other online/offline investments

How to make money from real estate market.

The market is very profitable and lucrative but many are still confused and asking questions like how to start and make money from real estate market because of it's broad nature. 

Hey, we will take a look at how to make money in real estate market through the easiest way and most reliable means.

❤The major ways to make money from real estate market is from properties such lands and housing.

For example, investors do leasing of lands, or sell lands when it appreciates as a result of location and development. another ways of making money from lands is receiving royalties from mineral resources found on your lands under documented agreement. sometimes government do pay compensation for mounting antennas, high tension. and other things like that on your land.

The second best way to make money from real estate market apart from lands is housing. either building for commercial or residential purpose. investors do build house to sell it out when the property appreciates or they rent it out at fixed monthly income, sometimes lease out to company, individuals and government to build warehouse or other commercial advantage to them and you will be properly paid depending on the contract agreement.

Risks found in real estate market.

Real estate market can be very lucrative. but hey, there's a whole lots of risk factor associated with it and important dangers you can see in the market. we will take time to analyse the key risks for you and possible approach to avoid it. 

Location

 Location is everything in real estate investment. if you care about your capital and you really want to do it right in the business of real estate investment. location is one vital risk assessment you need to check out for in making decision on properties to buy.                                                                                                               

 When we interview some real estate developers and sophisticated investor one thing they keep mentioning as a key to success, is how strategic located is the properties they intend buying.                                                                                                                                                                                                                                                 

Have an intelligent study of the area the property is located and how development is moving around that particular areas. being able to the imagine the future of the area you want to buy a property is an adequate financial intelligence quotient in real estate market.                                                                                                                     

 The things you should check out for in the real estate market when considering a good location to buy includes. check to know if there's any government related parastatal located around the area like hospitals, banks, offices and government chambers. you also need to check out for things like good road network, light and things like recreational activities around the area.

• Problem of tenants

For investor that do buy a property like lands develop it by building a comfortable shelter to attract some clients who will occupy the building as tenants making the investor a Landlord. we all hear the saga everywhere about Landlord and tenants wahala as it's called in Nigeria, that's to tell you all that there's always a big problem inside between landlords and tenants but we investigated so well to notice that apart not paying rents on time they're other problems.   

                                                                  

Tenants and landlords problem can be numerous and sometimes may cause the landlord lose huge income. affecting the real estate market margin for the investor. some issues such tenants domestic violence, damage of property, refusing to pay house rent and other issues which occurs in relationship with the tenants and landlords. but the best solutions we have discovered from research is to insure your home, and hand your property to a caretaker and to an eligible Lawyer to handle everything according to the laws.  
 

• Beware of Fraud

 Is hard to eliminate this factor completely in the real estate market but they can be minimized to it's lowest unit. to erase fraudulent act in real estate market such as fake documents, fake lands, fake agents\brokers and wrong agreement contract. the best way to do it is proper studying of the market to know the new update of scammers and ways to avoid them, ask questions about the property before buying and careful reading of the documents and agreement signature to know if that's actually what you want. 

Will Real Estate Market Go Down In 2022?

From records of the real estate market so far and unpredictable nature of the market. we will be listing out reason to show if the real estate market will go down or not in the year 2022.  real estate analysis for beginners (REB-2021) is mainly based on this post because many have been asking us if the market will soon crash or not. we all know some people always feel like the sky will fall. 

Although the real estate market is currently unstable with the following issues regarding house rents not paid on time, houses for sale pending, low price tags and inflation and so on.
Let's use Nigeria as a case study. looking at the major states like Lagos and Abuja, some buildings there are fully equipped and empty. nobody is living inside, the same with urban located estate housing. they are very luxurious but no tenants. go to Lekki phase1, main island and so on. that statistics shows you that the home sale pending is declining. reasons could be the current economic crash, low GDP (gross domestic product) per capital of the country, low demand of luxurious homes as result of large unit of poor masses in the country.

Some lands areas has been over looked or abandoned by government and some individuals, due to the one sided urban settlement of the country. they rich settle in the urban area and abandon the rural areas which will affects purchased properties around that area to have minimal profit margin per annum. 

In conclusion, from our real estate market analysis for beginners we discovered that the real estate market in 2022 will decline by 0.5% current market value if the Nigeria government remains unstable.

How To Invest In Real Estate Market.

Investing in a lucrative market like real estate, you need a very good strategy of investing and we will be sharing with you in this analysis of real estate market how to invest in profitable properties.

The first key strategy to invest in real estate market is to understand the market, what you want to invest. so many investors are losing a huge capital in real estate market because they don't understand the market, to what property they must buy at that particular time with respect to their purpose of investing.

A good invest takes time to be realized. another key is to attend seminars, coaching platforms, training and spend some time asking questions before investing. so as to understand where the capital of investment goes.

When an interviewer asked the richest man in Africa the person of Aliko Dangote about tips on investment success. he said something worth noting down, he said and i quote" Aliko group of company don't invest in any investments they don't understand vividly" they spend some time to analyse the market before investing. it's better to use $10,000 to learn about the market instead of using that $10,000 to invest as a novice.

Lastly, many investors don't know when to buy, what to buy and how to sell their property off in the market. so below is our explanations on how to buy and when to sell your property in the real estate market.

When To Sell From Market Analysis.

As it's important to buy a property so it's very important to know when to sell your property to have an expected return on investments.  so below are some analysis on when to sell your property with respect to market condition on months and years of the business calendar.

Historically, May was the best month to sell a house, but that changed to March in recent years. In 2019, homes listed during the weeks of March 11 and 18 sold fastest. Keep in mind, we omitted irregular data from 2020.

If you’re hoping to sell for more than the asking price, aim for the week of April 22. And try to list before September, because that’s when families start settling down to begin the school year. By October, sellers face the worst weeks of the year for maximizing gains — homes listed during the weeks of October 14 and 21 were least likely to sell above ask in 2019.

It’s important to remember that local market circumstances also influence the best time to list your house. Those conditions include job growth, mortgage rates and tax incentives.

So the best year to sell your home depends on the location of your property.

How To Buy A Marketable Property

You can buy a property, any property at any location but you can't sell any property at any given time for anything you want. what am i trying to say; you don't buy properties because you have money but you buy property because it's worth buying. although most times it depends on your reasons of buying.

Some people buy real estate property for their next generation, okay in that occasion you can buy any property but have in mind you're not liquidating any time you want. just as people have a fixed deposit in the bank for longer years before accessing it that shows how generational real estate purchase purpose is.

But as an investor who wants to buy a property for profit gain at a given time or willing to pull your capital and have your return on investment anytime you want. the investor must desire to purchase marketable properties or the investor should get an agent to help.

Here are some key factors to check out when to buy a real estate property for it to be marketable at any given liquidating time.

• Pay down personal debt

Pereira agrees that being cautious is key, saying, "It's not necessary to pay down debt if your return from your real estate is greater than the cost of debt. That is the calculation you need to make." Pereira suggests having a cash cushion. "Don't put yourself in a position where you lack the cash to make payments on your debt. Always have a margin of safety.

• Find the right location

Savvy investors might carry debt as part of their portfolio investment strategy, but the average person should avoid it. If you have student loans, unpaid medical bills, or children who will attend college soon, then purchasing a rental property may not be the right move.

The last thing you want is to be stuck with a rental property in an area that is declining rather than stable or picking up steam. A city or locale where the population is growing and a revitalization plan is underway represents a potential investment opportunity.

When choosing a profitable rental property, look for a location with low property taxes, a decent school district, and plenty of amenities, such as parks, malls, restaurants, and movie theaters. In addition, a neighborhood with low crime rates, access to public transportation, and a growing job market may mean a larger pool of potential renters.

Calculate your margins

Wall Street firms that buy distressed properties aim for returns of 5% to 7% because, among other expenses, they need to pay staff. Individuals should set a goal of a 10% return. Estimate maintenance costs at 1% of the property value annually. Other costs include homeowners' insurance, possible homeowners' association fees, property taxes, monthly expenses such as pest control, and landscaping, along with regular maintenance expenses for repairs.

This where we come to a conclusion on this particular post of real estate market analysis for beginners in (REB-2021). go through it carefully and utilize the information because information is power. we're living in the information age. so make sure you understand every words on this page or you can check out for older post on real estate brokerage in Nigeria.

Gracias por leer. 

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How to find real estate Agent, Realtor or Broker in Nigeria.

example of an Agent flyer

Real estate realtors, agents, brokers in Nigeria is growing in large number but only few are trustworthy and has a good reputation to do business with. You all know the type of country we live in. Even those things you see that are real in the actual sense are not even real.

Real estate investment in Nigeria is turning into a gold mine and many people are cuing to exploit the business in Nigeria, many have heard about real estate business without knowing how to start, tips to find a good property to invest or the right person to deal business with and some strategies of doing the business. in the blog post we will be helping you guys from the store of our experience in real estate for years on how to find a real estate agent, realtor or broker in Nigeria.

 Real estate realtors, agents and brokers business.

Honestly speaking brokers, realtors, agents delivers the same almost type of service under normal circumstance to their prospective clients. but who and the manner in which the work is delivered is the difference. Now let's throw light on the meaning of real estate and the difference between agents, broker and realtors. let's start with agents because that the people we are more familiar with.

 An agent in the real estate business can be a casual man who has enough experience in the business of real estate for years of practice. helping clients to buy, rent or sell real estate properties, at least for the past five years. such a person can be well known and have many testimonials attached to his portfolio as real estate agent in one locality.

A real estate Broker is a well qualified person who studied real estate management or any real estate related courses in the college or university, often has little years of experience and sometimes working independently. real estate brokerage require quality knowledge of real estate business in reading financial planners of contract documentations, analyzing sells, and probability of profit margin in the business. often a broker has some agents working under them, so a broker is likely to delivery a quality service than an agent.

A real estate Realtor is often called sales representative in a firm or an organizations of real estate. helping the company to advertise the property for sell or checking out of property to buy. although some realtors do work independently. Realtor are always law abiding business person and has a legal jurisdiction, they know the business of real estate as a result of their educational qualifications or years of experience in a company.

Real estate business in Nigeria.

Before we take you on the journey of how to find a real estate agent, realtor or broker in Nigeria, i will like to deem it necessary for us to know more about the real estate business in Nigeria and the mode of operation. 

Real estate is the profession of buying  and selling or rental real estate (housing, buildings, lands e.t.c), okay let's break it down. when you buy lands and resell; that's real estate business. once you see people building houses to resell to other people in order to make income; they're into real estate business. when tenants pay rents to landlords, those Landlords are into real estate and tenants are the customers in the business and professionals call them clients.

Finding reliable real estate brokerage company or certified individuals to partner in the real estate business with is another headache if you haven't been in the field or have some friends in the field.

Getting the best realtors, agents or brokers is the best step of success in the business of real estate, but how to get them in Nigeria is another different stress, unlike stock marketing, mutual funds and cryptocurrency dealers always have mentors or traders to help enhance their winning potentials. that's how you need a realtor, agent or broker to help you make the best possible profit in the business.

Services of real estate agents, brokers or realtors to clients.

For the sake of confusion of our readers we will classify realtors, agents and brokers services in summary. they're almost the same but slight difference as we explained above. they can perform each other work most times, especially in Nigeria where doctors work in Bank and Engineers work in the clinic.

Below are some reason why you might need a real estate agents in your business.

1. They help buyers locate the best property in the market for that season.
2. They help sellers get the best buyer for their property. 
3. They help their clients in Appraisal of real estate property
4. They fasten the renting outlet of housing properties to customers.
5. They assist in leasing a property out 
6. They often act as a caretaker to properties more especially when their clients are in diaspora. e.t.c

Directly or indirectly anyone in the business of real estate as a developer, investor, land bankers do need a real estate agent, broker or realtor close by. as banking is to accountants so is real estate to agents.

 

How to find the right real estate agent, broker or realtor in Nigeria.

They are many reasons and hints to know you're dealing with the wrong agent, most agents lure their clients into the wrong deal as if they have sugar in their mouth. high level of sweet tongue and little sense is one of the basic tips to discover the wrong agent. because they often present a property that doesn't exist and sweet mouth you to believe in the deal proposal work-ability or make you to pay without seeing the property in the business proposal.

To detect the wrong agent, watch the way they talk, most of them talk too much because they don't know what they're talking about. yes, some agents has low educational qualifications and most people don't have any educational qualification at all. so beware of any agent that talks to too much with little sense of what they're talking about.

It's always advisable to work with a registered realtor or broker, presently a staff of a firm or an independent person. it's always too way better partnering with registered body than picking any road side agent to work with in the name of "i sabi am as most of them usually say" please don't misunderstand me, the qualified ones can still dupe you of your hard earned money or make you lose much income but it's easier to trace the person's background and destination because government is with the data and most time afraid to lose their good reputations.

Don't work quack agents. most times you see people with the qualifications and eligibility but they don't own any real estate investment. they have been doing the business for years. they never cared to invest or tried buying any real estate property in their name. they're fake because the content of their advise and ideas is equal to none. wrong knowledge is the worst form of learning in the history of human kind. people preach what they haven't practiced or tried doing for once. for me such a person is not worthy to be my business partner. work with like minds. no matter how small they property might be, an agent that claims to be good should have a real estate property registered in his name. 

Just as dogs eat anything when ever their hungry so are some hungry agents steal from your dividends when you're in a business deal with them. a hungry person can turn a criminal over night, even when the person hasn't tried stealing a pin since childhood, but poverty is disease. so we advise to stop working with hungry agents. mind you, the type of hungry we meant is not physical hungry of not eating for some days but we're talking about financial hungry here. financial hungry is when the assets column is empty but the liability column is twice as tall. watch those people closely when they bring deal no matter how they sweet mouth or how good they claim to be. but they's just not the right person

Another way to detect the wrong agent for your deal or the already negotiating deal is their low profile connections/information. remember we live in information era and information is power. any good agent should have great connection, to give you multiple options of property to sell and also to buy and their location, including the contact of the owners of the any prospective property they're showing, those information makes the agent legit and well trained in the business. on the other hand some people are not agent, they have information they received from a friend, the owner or neighbor that is an agent, they will use the medium to act a second person middle man by referring somebody to the property instead of referring to the right agent, they will like to accomplish the task on their own with their zero skills and knowledge. sometimes they don't know the actual owner of the real estate property they intend to sale. just because they heard and never had time to verify because that's not their work. greedy and poverty will provide them another brand new job of making 5% of agent fee. the funny aspect is that most time those set of people once their first deal is successful. they might quit job to start real estate agent as full time job because of how cool the income they made and low stress involve and forgetting it's not always working that way. 

Lastly another way to discover the wrong agent or to notice you're working with wrong agent is the agent years of experience. just as we  explained above, whether educated or not, some people after acting as a 4th middle man in selling a piece of land and after getting some percentage. next thing is to quit their job and turn to full time agent in their locality. such people has no experience and their service is not reliable for professionals and most times irrelevant.

In conclusion, we live in the information era and the quality of information we have matters a lot and goes a long way in our progress in business, make sure you're with the right business partners because the right information comes with the right person. when you're not informed, you will be deformed and might not perform. positive people yield positive results. so before going into real estate business calm yourself down and search for the right partners to make real estate transactions with, no matter how small the deal might be.

Gracias por leer.

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