Real estate investment involves the purchase, ownership, management, rental and/or sale of real estate for profit.
Categories of Real estate includes:
- Residential Real Estate: This involves houses, apartments, air bnb, basically buildings where people can stay. This is usually the easiest and most common form of real estate investment.
- Commercial Real Estate; This involves the use of buildings for business purposes, this includes retail stores, office spaces, etc. The best way for individuals to get into Commercial real estate includes buying shares in a real estate investment trust.
- Industrial real estate: This includes the bigger players such as warehouses, storage units, multipurpose halls that generate income.
How do Real estate investors make money?
Real estate investors typically make money through rental income, appreciation of properties and/or profits generated by business activities related to the property.
- RENTAL INCOME:
Rental income is any payment you receive for the use or occupation of property. Expenses of renting property can be deducted from your gross rental income.
- CASHFLOW:
This is the net income from real estate investments. It is the amount of profit made each month after expenses has been deducted.
- APPRECIATION:
Real estate values tend to increase over time, and with a good investment comes a good profit after sales has been made.
Typical sources of investment properties include:
- Gianni website (giannicapital.com)
- Market listings
- Real estate agents and real estate brokers
- Banks
- Government agencies
- Public auction sales
- Private sales (transactions for sale by owner)
- Real estate wholesalers and investors (“flipping”)
For more inquiries on real estate investment in Nigeria, click here to contact one of Gianni’s representatives.