Experts in real estate have outlined five major ways successful real estate investment could be achieved by people who have interest in that sector.
The experts reason that achieving success in this investment asset class is a common goal for many people, especially now that inflation is eroding the value of the little people have in their pockets.
Money is losing fast in Nigeria due to a galloping inflation that peaked 33.95 percent in May 2024, up from 22.41 percent in the corresponding period in 2023. This is made worse by poor yield from most asset classes.
For a start, a prospective investor in real estate, according to Udo Okonjo, CEO, Fine and Country West Africa, the investor has to create a plan.
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She added that the investor has to Understand the market and his niche; have Have a high level of sincerity, be risk-conscious and invest in the power of collaboration.
Okonjo, a well known marketing expert, explains that developing a business plan is a crucial step for any real estate investor. “A well-crafted plan helps you see the bigger picture and stay focused on your key objectives, rather than getting sidetracked by minor obstacles. This strategic approach ensures that your investments are aligned with your long-term goals,” she says..
According to her, staying informed about current market trends, such as changes in consumer buying patterns, mortgage rates, and unemployment rates, is essential for real estate investors.
This knowledge, she explains further, allows you to anticipate market shifts and make informed decisions. “Mastering a specific niche within the market can lead to long-term success, and once you’ve achieved this expertise, you can apply the same focused strategy to explore new markets,” she notes.
In real estate, from both investment and marketing perspective, one’s reputation is his currency. Normally, successful investors understand that maintaining a high level of integrity is crucial. Okonjo points out that being ethical in one’s dealings is far more valuable than trying to cut corners. She adds that treal estate rustworthiness and honesty build strong relationships and a positive reputation in the industry.
To be successful in this sector, an investor has to be risk-conscious because the investment itself comes with inherent risk which is similar to what obtains in the stock market which is another investment asset class.
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Okonjo says that wise investors are aware of the inherent risks and therefore, take steps to mitigate them. This includes understanding the potential legal repercussions and the specifics of each deal. By being risk-conscious, the investor can make informed decisions and protect his investments.
“Building a professional network can provide invaluable support and opportunities for both new and experienced real estate investors. Surrounding yourself with a mentor, business associates, clients, or members of charitable organizations can lead to mutual growth and encouragement,” she says, adding that networking is a vital part of the real estate business, as much of the learning comes from hands-on experience and shared knowledge.
