When a lot of people hear “real estate investment”, the first thoughts that come to mind are “money”, and “way too expensive”. What if we tell you that does not have to be the case and you don’t need a lot of your money to invest in real estate?
Real estate has always been a stable way to build wealth hence a lot of people tap into it. The steps to take to secure the capital to help you start a real estate investment are usually a major concern. However, in real estate in Nigeria, unlike many other investment options, regardless of your financial situation, there are several options to start investing without a lot of money.
In this article, we’re going to show you FOUR ways you can start investing in real estate without having a lot of millions at hand.
Four Ways To Invest In Real Estate With Little Capital
- Government Housing Funds
This is a government-controlled scheme designed to make it easier for citizens to own their properties and invest in real estate by providing loans at subsidized interest rates. Furthermore, it is a beneficial way for individuals who find it hard to accumulate wealth from their monthly incomes to purchase a property or a real estate investment.
How Does It Work?
You can have access to the Government Housing Funds if you follow the guidelines and meet the requirement. Some of the requirements are proof of monthly income or employment, age, national identification, a filled application and some other documents. After an individual has met these requirements, the fund then proceeds to give the individual a certain sum of money that is to be paid back over a certain period. Lastly, this allows an individual to acquire a property, get their returns on investment and afterwards, pay back the capital with time.
When investing through lease, you don’t need to have full ownership of a property before you start making returns. It simply means that you rent a property for a long period, usually 10 years and above.
How Does It Work?
After a property owner leases his property, you can then proceed to sublease. For instance, we have properties where you can own an apartment on lease for 20 years at Surulere, 19 years at Shomolu, and 25 years at Surulere as well. At any rate, with a payment plan or outright payment, you can own the property and start earning profits from rent immediately. This way, you can own a property for a long period and earn more than 50% returns within the period. People often ask what happens after the lease period, here is your answer. After the lease period, a new agreement can be negotiated with the property owner. In the absence of a new agreement, the ownership of the property will be reverted to the owner.
- Land Flipping
This method is perhaps one of the smartest investments and does not require a lot. Specifically, it involves buying a property or land and reselling it for a higher profit. It is all about studying the market, understanding land value, and other factors to know the best period to buy and sell. It requires having a large amount of money, which can be acquired through investors or loans and if done properly, it can create great returns.
- Payment Plans
A lot of real estates and property development companies provide instalment payment opportunities for willing investors to start an investment. The payment plans are broken down over a certain period. This way, an investor does not have to worry about paying the entire sum of money at once. This makes it easier for people to take their time to make their payments and acquire real estate investments.
The real estate and property development industry can generate a lot of returns for people that are willing to invest. Sadly, a lot of individuals are not aware of the endless possibilities in real estate, hence we hope you enjoy reading this and take the right steps to start investing today. Take a moment and schedule an inspection at any of our properties today.