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Real estate trading has become one of the most popular ways to invest in real estate in Lagos and across Nigeria. The human desire for money is insatiable, and we are continuously looking for ways to get more of it in a more convenient, faster, and risk-free manner. As a result, the majority of investors turn to real estate.
Because you’re dealing with actual assets, real estate is regarded as one of the safest investments on the planet. It improves in value over time, is unaffected by inflation, and has additional advantages.
However, the majority of people believe that real estate is just for the wealthy. Others see it as a business that takes millions of dollars to get started. While this line of thought may be valid in some elements of real estate, such as renting, commercial real estate, and short-term rentals, it is not valid in others.
Regular real estate agents who exchange properties with other local Lagos-based investors as well as those interested in selling and purchasing homes or lots online have embraced the practice.
Real estate trading entails purchasing property with the goal of holding it for a limited amount of time before selling it for a profit.
Real estate trading differs from real estate investing in the same way that investing in stocks differs from trading stocks, with the former being long-term speculation and the latter involving shorter-term speculation.
Simply explained, real estate trading is a sort of agreement that requires to Buy a property most times land and resell it after a period of time ( usually 6-12 months) for profit
Trading real estate isn’t a conventional strategy in the real estate sector, in fact, it’s so rare it’s present in a few countries. However, this is a safe and guaranteed venture because it gives real estate investors an opportunity for a short-term investment. usually not obtainable in real estate.
Real estate is one of the most popular and successful investments with a lot of potential for success when done correctly. Real estate trading has numerous benefits, including a consistent income stream that can lead to financial independence.
The amount of time you hang on to your property has historically reduced your chance of loss in real estate. As the market improves, so does the value of your property, and you develop equity as a result. In the stock market, the risk is constant, and there are various events beyond your control that might harm your investment.
Liquidity is a benefit of real estate trading. Unlike typical land banking, which requires you to wait six, seven, or even ten years before reselling your property. When trading real estate, you can sell your property for cash at the end of the year, providing you cash to spend.
At the end of a year, investors can expect to make a 40 percent profit. Trading real estate is light years ahead of other financial investing institutions, which provide at worst a 4% ROI in the same time frame.
When trading real estate, you have the option of withdrawing your interest and reinvesting the capital after 12 months for a profit of 20 to 40%.
You will get the same benefits of land banking, which is a stress-free investment, with Trading Real Estate. You won’t have to worry about on-site work, fence, or allocation.
Trading real estate is a profitable investment that yields a 40 percent return in 12 months, compared to 4-12 percent in the same time period from other financial organizations. Trading real estate is also guaranteed and more suggested because of its relationship with real estate.
In recent years, online trading has become a real trend, as more and more investors try to make a faster profit by promoting their properties on the internet.
Websites that allow you to publish photographs, information, and pricing for one or more properties can swiftly spread the word that you are trying to trade throughout almost all of Nigeria, and you can quickly locate a viable offer using additional advertising tactics such as printed ads and online classified ads.
In any commercial endeavor, experience is crucial, and real estate trading is no exception. However, you will have none when you first start out, making it even more crucial to understand everything you need to know about the business before you invest your money, which may include more than some marketers are prepared to tell you.
It’s very crucial to investigate your real estate market so you don’t have to make educated assumptions about how successful you’ll be in selling your home for a profit within a certain time frame.
If everything seems good, you’ll need to secure finance for both the purchase price and the costs of operating and maintaining the property during your ownership time. This includes the ability to keep things together if the sale takes longer than expected.
If things go well, you’ll be able to use the earnings from your first agreements to expand your firm. However, it’s crucial to use these gains to minimise your risk rather than continuing to leverage yourself to the point where you’re overly reliant on luck and wind up in a poor situation.
To begin your journey into the world of real estate trading, you must first decide on a few things.
To put yourself in a position to succeed in real estate trading, you’ll need to do a lot of study, have a generous amount of capital, a lot of planning and skill, and more than a little patience. It is not something for which you can simply pay a small fee and then claim to be an expert or magician, and caution must be maintained at all times.