Can we point out the top 5 mistakes Nigerians in the diaspora make when investing in real estate? Yes. That’s what I’m about to cover in this article.
I know a married couple who live in the United Kingdom and another in the United States. Both families invest successfully in Nigerian real estate with no hassles.
How do these couples succeed at it? Through years of experience, they know the mistakes to avoid and the correct real estate companies to use to achieve their dream.
Among other things, you should also know the basics of how to buy landed properties in Nigeria, as I've discussed here.
Now, let's get started.
Top 5 Mistakes Nigerians In The Diaspora Make When Investing In Real Estate
After sitting down with these family friends who live abroad and invest heavily in real estate and many due consultations with other clients, I've compiled these top 5 mistakes Nigerians in the diaspora make when investing in real estate:
1. Not Doing Your Homework
One of the most important things you need to do when investing in any property is to do your homework.
It means researching the location, the type of property you want to buy, and, most importantly, the prices.
You must do homework to avoid overpaying for a property or investing in a location without good growth potential.
2. Relying On Family And Friends For Advice
Just because someone is family or a friend doesn't mean they know everything about real estate investing.
You must seek professional advice from experts in the field before making any decisions.
Giving family and friends advice can lead to bad decision-making and financial loss.
3. Not Having A Clear Investment Strategy
Another mistake Nigerians in the diaspora make when investing in real estate is not having a clear investment strategy.
It means planning what you want to achieve with your investment and how you will do it.
Without a clear strategy, it's easy to make impulse decisions that may not be in your best interest in the long run.
4. Cannot Delay Gratifocation
Putting money in real estate and getting ROI takes time and patience. It's important to remember that you'll see results after some time.
There will be ups and downs, but if you stick to your investment strategy and remain patient, you will eventually see the results you're looking for.
5. Not Diversifying
Last but not least, one of the biggest mistakes Nigerians in the diaspora make when investing in real estate is putting all their eggs in one basket.
It means putting all your money into one property or location instead of diversifying your portfolio.
By diversifying, you spread the risk and have a better chance of seeing returns on your investment.
Avoid making these mistakes, and you'll be well on your way to successful real estate investing in Nigeria.
How Can I Be A Successful Real Estate Investor As a Nigerian in Diaspora?
Based on facts from the 'National Association of Realtors', putting money in real estate is becoming increasingly popular with Nigerians in the diaspora.
It is because real estate investing provides a way to build long-term wealth, generate income, and hedge against inflation.
However, there are a few things you need to know before becoming a successful real estate investor as a Nigerian in the diaspora.
1. Know your goals
The first step to crush it as a real estate investor is to know your goals. Do you want to generate income, build long-term wealth or both?
Once you know your goals, you can look for properties to help you achieve them.
2. Do your research
Investing in real estate is a big decision, and you must ensure you are well-informed before making any decisions.
Research the different types of real estate investments and learn the pros and downsides associated with it.
3. Find the right property
The key to making it big in real estate investing is finding the right property. You must find a property in a good location priced below market value.
You can generate income once you find a property that meets these criteria.
4. Get help from a professional
Getting your ROI in real estate can be complex, and getting help from a professional is important. An expert realtor will assist you to get the right property and negotiate the best price. You can get good financing through a mortgage broker.
5. Be patient
Real estate investing is a long-term process, and you must be patient. Don't expect to make a lot of money overnight. It takes time to find the right property, get it under contract and then resell it for a profit.
If you follow these tips, you can be a successful real estate investor as a Nigerian in the diaspora. Remember to research, find the right property, and be patient.
What Are The Factors Affecting Real Estate Development in Nigeria?
When considering real estate development in Nigeria, quite a number of factors influence the process.
First and foremost, the country's political and economic stability will play a major role.
If the country is stable, attracting foreign investors and securing the necessary financing for development projects will be easy.
Moreover, the availability of land and other resources will also impact the feasibility of real estate development.
Another important factor to consider is the population growth rate. Nigeria is currently one of the fastest-growing countries in the world, with a population projected to double by 2050.
The growth in population elicits a demand for additional housing, increasing prices and making development projects more viable.
Infrastructure is another key factor to consider when assessing real estate development in Nigeria.
Good infrastructure is essential for any country looking for foreign investment and generate economic growth.
Nigeria's infrastructure needs significant improvement, which will likely impact the feasibility of real estate development projects.
Finally, Nigeria's corruption level is also a major factor to consider. Corruption is rampant in Nigeria, making it difficult to do business there.
This corruption can impact the feasibility of real estate development projects by making it difficult to obtain the necessary permits and approvals.
Consider these factors to assess the feasibility of real estate development in Nigeria.
While the country offers attractive development opportunities, several challenges must be addressed.
Only by considering all these factors can developers make informed decisions about whether or not to pursue real estate development projects in Nigeria.
5 Best Strategies to Invest In Real Estate In Nigeria From The Diaspora
Are you a Nigerian in the diaspora interested in investing in real estate back home? If so, you're not alone.
Many Nigerians living abroad are looking for ways to invest in the Nigerian real estate market, whether to generate income, take advantage of appreciation, or both.
If you're looking for the best ways to invest in real estate in Nigeria while you live abroad, here are five of the best:
1. Buy a property outright.
One of the best ways to invest in Nigerian real estate from the diaspora is to buy a property outright. It could be a residential property you plan to rent, a commercial one for business purposes, or even land you hope to develop..
A rental property is a great option if you're looking to generate income from your investment. You can rent the property yourself or hire a property management company to do it for you.
Either way, you can generate a regular income from your investment.
If you're more interested in capital appreciation, buying a property you hope to sell for a profit in the future is a better option. It could be a fixer-upper you renovate and sell or raw land you develop and sell.
2. Invest in a real estate crowdfunding platform.
Another great way to invest in Nigerian real estate from the diaspora is to invest in a real estate crowdfunding platform. Platforms like FundRise and Realty Mogul gives their investors the opportunity to invest in a varied portfolio of real estate projects in Nigeria and abroad.
Investing in a real estate crowdfunding platform is a great way to get started in real estate investing without having to commit a large amount of capital. It's also a great way to diversify your investments, as you'll invest in several projects rather than just one.
3. Put your money in a real estate investment trust (REIT).
Another option for investing in Nigerian real estate from the diaspora is to invest in a 'Real Estate Investment Trust' (REIT). This is a company that owns, operates, or finances income-producing real estate.
Several REITs focus on Nigerian real estate, such as the Africa Property Fund and the Nigeria Property REIT. Investing in a REIT is a great way to get exposure to the Nigerian real estate market without buying a property outright.
4. Invest in a real estate development project.
If you're looking for a more hands-on way to invest in Nigerian real estate from the diaspora, investing in a real estate development project could be a good option.
It could be anything from developing a new residential subdivision to renovating an existing commercial property.
Of course, investing in a real estate development project is more risky than other options.
But it can also lead to greater rewards if everything goes according to plan.
5. Lend money to a developer.
If you're not interested in investing in a real estate development project, another option is to lend money to a developer.
You can do this through a private loan or investing in a real estate development project through a crowdfunding platform.
Lending money to a developer is a passive way to invest in real estate, but it can still be profitable if the project succeeds.
If you're interested in the development process, I advise you to always negotiate with the developer to get involved in the project in some capacity.
These are just five of the best ways to invest in Nigerian real estate from the diaspora. Of course, there are many other ways to invest as well.
But these five should be on your radar if you're looking for the best ways to get started.
Best Places For Nigeria in the Diaspora To Invest in Real Estate
The Nigerian government aims at improving the country's infrastructure to attract more foreign investment and encourage economic growth.
One of the government's priorities is to develop the country's transportation infrastructure, including constructing new airports, seaports, and roads.
The government is also working to improve the power grid and provide clean water access.
Nigeria is a great option if you are looking for where to put money into in real estate. The country's economy is budding and a large population expected to grow.
The country also has many natural resources, making it an attractive investment destination.
Here are some tips for investing in real estate in Nigeria from the diaspora:
1. Do your research: When investing in any country, it is important to do your research.
It includes learning about the economy, the political situation, and the real estate market. You should also research different areas of the country to find the best place to invest.
2. Find a reputable real estate agent: Once you have done your research and are ready to start looking for property, finding a reputable real estate agent is important.
They can help you find the right property and negotiate the best price.
3. Get a good lawyer: It is also important to have a good lawyer when investing in real estate. They will be able to help you with the purchase's legal aspects and ensure that everything is done correctly.
4. Have realistic expectations: When investing in any market, it is important to have realistic expectations. The Nigerian real estate market is still growing, and your investment may take some time. However, your investment should eventually pay off if you are patient and have a long-term perspective.
5. Be prepared to take on some risk: Risk is always involved when investing in any market. However, if you are prepared to take on some risk, you could make much money from investing in Nigerian real estate.
Nigeria is a great option if you are looking for a high-return investment. The country has a growing economy and a large population expected to grow.
The country also has many natural resources, making it an attractive investment destination.
Identifying Reliable Real Estate Companies To Invest In From The Diaspora
It is where the rubber meets the road. How do you identify legit real estate companies to partner with?
There are a few things that you can look for when you're trying to identify reliable real estate companies to invest in from the diaspora.
Good Reputation: The company must have reliability and trustworthiness. You can do your research through reviews online and consulting with other investors.
Physical Presence: The company must provide avenues to meet representatives and understand their business. You can verify if the company has a physical presence in the target investment country.
Financial Check: I advise you to check for the company's financial stand because this indicates stability and long-term viability. How can you determine this? It's possible by examining financial aspects such as revenue, expenses, and profitability.
Conclusion
Now that you know the top 5 mistakes Nigerians in the diaspora make when investing in real estate, I trust you cannot fall into those 5 traps again.
However, you must do due diligence to know related things, such as the right time and season to invest in Nigerian real estate abroad.
You can learn what to look for in reputable real estate companies to partner with in Nigeria here.
I wish you good speed in your investments.