REAL ESTATE INVESTMENT OPPORTUNITIES


REAL ESTATE INVESTMENT OPPORTUNITIES
by Anthony O. Anyakora

“Ninety percent of all millionaires become so through owning real estate. More money has been made in real estate than in all industrial investments combined. The wise young man or wage earner of today invests his money in real estate.”   -Andrew Carnegie


There are various real estate investment opportunities of which if investors are abreast with, would make their real estate investment journey worthwhile.
More often than not, prospective investors are not aware of the enormous “gold mine" in the real estate sector considering it is usually capital intensive. However, modern day technical know-how has made it possible for investors to tap into the unlimited opportunities in the real estate sector. The various opportunities include but not limited to: 
-Real estate development or property development 
-Rental income investment
-Shared apartment
-Off-plan property
-Land banking
-AirBnB

Rental income investment is arguably the most common for m of real estate investment. Investing in rental property can be lucrative but it can come with many challenges. Being a property owner (Landlord) can be a good way to earn rental income but it is not easy or hassles’ free. As the challenges includes but not limited to: choosing the right property, setting up the property unit and finding a suitable tenant for the property.
The owner of rental property can hire a competent property manager which means less work and fewer headaches. They can also take advantage of their industry expertise for an agreed fee.

Real estate development or property development is a business process encompassing activities that range from renovation and re-lease of existing buildings to the purchase of bare land and sale of developed land to others.
Developers buy land, finance real estate deals build or have builders build projects, develop projects in joint venture, create, imagine, control and orchestrate the process of development from the beginning to the end. Developers usually take the greatest risk in the creation or renovation of real estate and receive the greatest rewards.
Typically, developers purchase a tract of land, determine the marketing of the property, develop the building program and design, obtain the necessary public approval and financing, build the structures and rent, manage and sell it.

AirBnB stands for “Air Bed and Breakfast.” 
The idea behind Airbnb is a way for local people to make some extra money renting out their spare home or room to people visiting the area. Airbnb can offer a homey place to stay that has more character, perhaps even with a kitchen to avoid eating out, often at a lower price than what hotels charge.

Land banking is the practice of aggregating parcels of land for future sales or development. There are many large real estate development companies in Nigeria that engage in land banking. These companies buy undeveloped land, farms and other Greenfield sites after thorough research on locations prone to quick appreciation and development to add to their existing portfolio.
These portfolios can be considered as their “bank.”  The concept enables developers to have available stock of land for any future property developments. These land banking investment companies help investors to put their funds in purchasing undeveloped lands from their land banks; investors hold them for a while intending to resell at higher prices for maximum profit.

Off-plan property: The term "off-plan property" refers to property which is available for purchase before it has been constructed.  Off-plan property is sometimes marketed to property speculators who purchase it with the aim of making capital gains by taking advantage of any discounts and selling into a rising market. 

Shared apartment: This situation arises when two or more persons decide to co-habit in an apartment as joint tenants or when a person decides to rent part of his or her apartment to another person as a sub-tenant with shared facilities there by leading to shred tenancy. It is important to note that this arrangement is more of a pragmatic arrangement rather than a legal creation.

#Issue01
#RealestateRadar
#Realestateinvestment
#Amberandwhitestone
#Realestateconsultants
#Realestateinvestors
#Investmentguide
#RealestateOutlook

Comments

Post a Comment

Popular posts from this blog

DISTRESSED SALE

Image
DISTRESSED SALE  by Anthony O. Anyakora “Real estate investing even on a very small scale, remains a tried and true means of building an  individual’s cash flow and wealth.”   - Robert Kiyosaki A distress sale or distressed sale happens when a property, asset or stock is sold quickly. Distress sale often result in financial loss for the seller who for reasons of economic constraint must accept a lower price. The proceeds from these assets are most often used to settle debts or emergencies. A distress sale may occur due to any of the following: +Bankruptcy +Divorce +Declining real estate value +Medical expenses/ health problems preventing the owner from maintaining paid employment +Business failure +Death of spouse +Unemployment Bankruptcy is a state or condition of one who is unable to pay his debt. This could be caused by unemployment, health challenge or business failure. Divorce could lead to a distressed sale when the property is jointly owned by a ...
Read more

LAND TENURE SYSTEM IN NIGERIA

Image
LAND TENURE SYSTEM IN NIGERIA by Anthony O. Anyakora “The best investment on earth is earth.” – Louis Glickman We live in a society where emphasis are constantly made on the importance of real estate investment. It is pertinent to understand what one can truly own and the necessary documents that confers ownership rights. Basically, land tenure system in Nigeria is an institution of law that regulates the use, management and transfer of land. The Land Tenure System in Nigeria is the process of granting ownership of land to individuals, legal bodies and corporate bodies based on their use of these lands. The Statutory instrument is used to ensure that human habitats are safe and sustainable.  Before the Land Use Act of 1978, there were three major land tenure systems that coordinated how people owned land.  *The Customary System *The Non-Customary System *The Native Law System The Customary System: Basically, the customs and traditions of the various communities wit...
Read more