Owning properties has become a money spinner in Nigeria lately. Opportunities to make money in real estate abound for a very keen and enthusiastic investor.
This is because a lot of people have begun to understand that need for shelter ranks top among human needs, many people are going into real estate.
While in years past, young people were found to harbor lackadaisical attitudes towards owning their own properties, they are now seeing a lot of business opportunities in real estate.
A lot of young and bright minds are now carving out a career for themselves in the real estate industry.
A career in real estate can be both rewarding and challenging because while some people earn six-figure salaries, others, just a few thousand per year. While it can be a great career choice; challenging, flexible and exciting, the profession should not be for everyone because there are certain levels of knowledge you need to have before you get started in real estate business.
As a real estate agent, you are essentially working for yourself. Although, there may be a few jobs available that pay an hourly rate, a typical real estate agent works strictly on commissions generated from the sale or rental of a residential or commercial property.
Just as you would before starting any business, you should make sure you have the right character traits to work for yourself before becoming a real estate agent. At least the ambition to eke a living via real estate must be high. Then you have to organise yourself to know the branch of real estate you should delve into.
There could be challenges, obstacles and distractions but you must be focused knowing you are always on your own so you must be on your toes with ears sharply open. You must however persevere even if starting out could prove a little bit rough and rocky. Above all, you must develop manners of approach, friendly relations; you must mingle among peers and above peers including associations, clubs and societies that cut across class.
To develop a career and make money in real estate, you must set your own schedule and work strictly with it.
You will also need to be organised and ambitious enough to actually work at your business every day. Organization skills are important because you will be dealing with contract deadlines, client appointments and follow-ups with other professionals in the field.
The reality about investing
The word on the streets nowadays is that if you have an extra sum of money and want to invest it, you should definitely consider real estate for a decent rate of return.
Generally, properties tend to increase or hold their value, depending on certain conditions, which is why they are considered a safe investment. They retain their value due to the phenomenon of inflation, since at least its price tends to increase with inflation; although this is not strictly a business, nor is it a capital loss.
However, a property can often increase their value over inflation. Often this is due to the dynamics of supply and demand of properties in the location in which the property is located, either because it is in a fashionable district, or because an infrastructure project has increased its value. It is better to buy land as a business strategy because the value of any property usually tends to rise along with the price of inflation.
Even a piece of land on which nothing is built does not lose its value over time. However, building some kind of housing or commercial property on that land will double its value since you can sell or rent it, thereby recovering your investment.
There are several ways to invest in housing, whether a house or an apartment. You can buy a property and put it up for rent or lease, thus obtaining a fixed monthly income. If the house in which you live is too big for you, you can sell it and buy two smaller houses, one to live in and the other to rent.
A few investors in real estate like to buy second-hand housing, remodel and adapt to sell it later, thus obtaining a considerable economic benefit.
Other forms of investing in housing include buying and remodelling a property to be sold later. This form of business with real estate is usually common among developers and agents, it usually involves a large capital but its reward is a considerable economic benefit.
However, just like any business has its gestation period, so do you, as one who wants to make a money in real estate should bear in mind that most real estate agents don’t make huge commissions during their first year. It takes time to build a client base and get accustomed to how the business works. If you go in thinking that it is something you will try out for a few months, then give up if you are not earning lots of money, real estate might not be for you.