A business in real-estate is a win-win: it does not require any special education and it is income-promising long-term deal while the demand for it will always be high everywhere.
Nevertheless, there are certain nuances worth considering before you go into real estate business. If you want to start real estate business in Nigeria, you will find all the important tips in this post!
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6 reasons to start a business in the real estate trade
- Real estate is the most reliable investment. Of course, sometimes real estate in Nigeria (as in any other country) is experiencing a crisis but it is quickly replaced by the boom.
- You can always increase the cost of your property by modernizing and improving it.
- Your real estate allows you to get a loan against the property. You can spend it on the development of a parallel business or the purchase of more property.
- Acquisition of real estate will help you save on office rent.
- Real estate investments are a great way to protect yourself against inflation.
- Running such a business is simple. The main thing is thorough knowledge of its nuances!
How much can you earn?
According to experts, the potential revenue from the purchase and resale of property in Lagos is 20-30%.
Let’s say you purchased a house for $ 100,000, made some renovations that cost you $ 3000 dollars. The cost of housing has increased and you sold the house for 125 000 dollars. Your total income amounted to 125 000 – 100 000 – 3000 = 22 000 $.
Think about it: $ 22000 for 1 transaction on purchase-sale of real estate!
Legal issues
As in many civilized countries, in Nigeria real estate business implies legal registration. It is enough to register a legal entity in the relevant organizations.
Staff
The work in a real estate agency first of all involves communication with the customer so all the employees have to be tolerant and have some skills of a psychologist.
You can start without any employees: at first you can handle all the work yourself. As the number of deals increases, you will definitely need helpers.
However, you won’t be able to do without a professional that will create a real estate business plan for you that you will show to investors or a bank in order to get a loan to purchase real estate.
The premises
To obtain a permission to trade real estate you will need a business address. However, you can run business from your home.
If you decide to rent an office, it does not necessarily have to be in the center of the city, but it must be located in a place where a lot of people go every day, like in a residential area.
Advertising and attracting customers
This is the most important aspect, especially if you run the business on your own!
This is the case where the end justifies the means: you can tell your friends, acquaintances, colleagues about your services. This is one of the activities where buzz marketing works best.
However, make sure to use the Internet to the full! Where and how can you find clients on the web? Check this out:
- on classified ads portals;
- in the relevant groups of social media;
- advertise on real estate sites;
- write a relevant blog on any suitable portal;
- create your own site;
- communicate on discussion forums.
If you decide to start a business in the sphere of property Nigeria is a great place for that thanks to a quickly developing construction sphere: the choice of real estate is enormous, the same as ways to handle it!
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