Misconception number 4 IS THAT Being a landlord is hard work.”

Some people choose not to invest in RE because they feel that once they become a landlord, they’ll have no time to do anything else. They feel they will have to deal with all the tenant issues that arise, and life will become more stressful.

It is true that being a landlord can take up a lot of time, but it doesn’t have to. The truth is you don’t have to do everything on your own, and many landlords find that outsourcing allows them to grow their portfolio far beyond what would have been possible if they were overseeing everything on their own.

A good property manager can handle the day-to-day ins and outs of your property while you focus on the aspects of investing that excite you the most. For landlords today, there are options that allow you to be as hands-on (or hands-off) as you’d like.

So don’t run away from investing in RE because you don’t want stress. Find a way to ensure that the stress is someone else’s responsibility. That’s why you pay them. To take on the responsibility on your behalf. Nigeria has really good property management companies and solicitors who can help you handle the day-to-day running of your properties and ensure rent is collected on time and deal with any tenant issues that arise.

Misconception number 5 Real Estate investing in Nigeria is very risky.”

Some people will say that investing in stocks is a safer option, that investing in real estate is risky. After all, you don’t know how the market will fluctuate or if you will be guaranteed tenants 100% off the time. Or what if a tenant doesn’t pay? What if they destroy the property etc etc

Now, It is important to realize that no investment is 100% risk-free. However, there’s a lot that you can do ahead of time to mitigate problems and lower your risk, allowing you to ensure that you’re investing in something that will produce a good rate of return. An example is ensuring you are in the right location and the demand outweighs supply for the property you are investing in.

It is true that investing in real estate has risks, but it also has advantages that those other investments do not have, such as the security of having a place to live or a tangible investment. 

Investing in real estate offers you the unique advantages of having an annual income, even during times of economic downturn, when many stock-based investments would stop paying dividends. There are also insurance options for rent guarantee. So, you can take up insurance if your tenant defaults and doesn’t pay you, your insurance will kick in and cover you to reduce your losses and you can extend your insurance for property damage as well. In effect you are reducing the overall risk of your investment.

As former US President Franklin Roosevelt reportedly said: “Real estate cannot be lost or stolen, nor can it be carried away. Purchased with common sense, paid for in full, and managed with reasonable care, it is about the safest investment in the world.”

So RE is a tangible and safe investment if done wisely.

Misconception number #6 “Cities are the best places to invest.”

To increase your chances of success, some people will advise you to only invest in fully developed communities or well-established neighbourhoods that is close to central business districts. This will give you a clearer picture of what you are investing in, and help you understand what you are getting into before you sink your teeth into it.

While there is some truth to this, it is important to remember that investing in an emerging community; an area that’s projected to see growth can offer better returns. Investing in major cities can be expensive, and even though your revenue might be higher, your returns could easily be lower due to increased costs. Cost of land is higher in a developed area as opposed to emerging locations. Often, city renta