Investing In Real Estate In Nigeria: 5 Challenges To Consider

Investing in real estate in Lagos Nigeria is one of the quickest and safest way to make profit in the short and long term. This can be attributed to the population boom in Nigeria most especially Lagos. 

However, there are lots of challenges that comes with Investing in real estate in Nigeria
, below are some of the most occurring real estate challenges in Nigeria and possible solutions to handling them.

Also read Why You Should Buy Your Plot Of Land In An Estate

#1 Investing In Real Estate: Securing Bank Loan.

Securing Bank loan in Nigeria is a very cumbersome task because of the lots of factors that plays when securing a loan. It ranges from; who you are?, who you know that can back you up?, type of investment you have? and the interest rate bank charges. All this directly and indirectly deprived investors from securing loans.

Solution:

For the foreseeable future there is no solution to this challenge. If you plan to buy an investment you should work on your saving if you have not started doing so, keep at it if you are doing so.

You should also ensure that all your debt are being serviced in order to secure more loan. You should also have assets you can trade the loan with.

Ensure to build good relationship with family and friends, you can get good interest rate from them depending on your level of relationship.

#2 Initial Payment

Getting the right initial payment can be difficult to search for, developers offer different flexible payment plan from 10 to 15%.

Solution:

If you can come up with the initial deposit you have done 60% of the task in acquiring the investment. Property investment have 24 - 36months payment plan. If you can pay the initial deposit from your savings or bank loan the remaining balance with be spread in whatever monthly plan that is convenient for you.

#3 It is time consuming.

Just like renting a home, purchasing a property 'requires a lot of time. You will need to do a lot of online and offline search, decide on the location, the price and possibly hiring lots of real estate agents to broaden the search.

Solution:

You don't need to be an expert in real estate investment, all you need to do is some planning. You need to carefully consider how to start, which can be from simple to complex, you need to search for a reliable agent who works with investors. Try to get new experiences from every agent you might have worked with.

#4 Managing A Rental Property is Hard work

Real estate investing is a business as well as a part time job. When you have acquired a property and become a landlord you will have to manage your tenants, do a lot of fixing and repairs when problem occurs. All this will cost you time and finance.

Solution:

To solve this challenge you need to employ a real estate manager who will be responsible in handling all issues concerning the property.

Read How To Acquire Land in Ibeju Lekki In Lagos

#5 Your Money Is Tied Up

In real estate investment when you have purchased a property that money that has been invested can't be gotten whenever you want to make use of it. If you want the money you will plan to sell off the investment sooner than later.

Solution:

Don't allow the fear that you might not get your Money as soon as you want it prevent you from investing in real estate now. The longer it take the more appreciation your investment get and more profit you will get. It is important that you have extra cash or other source of investment that you can fall on when the need arises.

What Questions Do You Have About Investing In Real Estate In Nigeria, please drop a comment below.