Buying and selling of lands is also known as Land flipping. It involves purchasing a property and holding on to it for a while for it to appreciate before reselling it at a higher price. Buying and selling of Land is one of the most unnoticed yet profitable means of making money in Nigeria. As rural areas develop into urban areas, those who have invested by buying lands in those areas tend to get fivefold of their investment because the area is now developed. This write-up provides the right answer to the question, Is buying and selling of land profitable in Nigeria?

Is buying and selling of land profitable in Nigeria?

The answer is YES.

Land flipping is a great way to earn money in Nigeria, but it may not be easy to get started without an adequate understanding of the process involved. Unlike buying a complete building that will require some renovations thereby demanding a huge capital, it is not so with land flipping. You can start with a low capital. Land can be bought for as low as 1 million Naira and after some years or a few months, you can get double the amount you bought if the area develops rapidly. More importantly, it doesn’t require repairs or renovations and has higher profit potential.

Having established that buying and selling land is profitable in Nigeria, there are things to consider. Just like every other business in Nigeria, a properly drawn-out plan is essential for a successful turnout. In addition, one has to consider certain risk factors that might come with it such as not getting buyers quickly when you decide to sell your land. However, the risk factors can be minimized if adequate marketing is done.

Another major factor to consider is counting your costs before venturing into the business. When buying the property you plan to flip, you must ensure you are fully aware of how much the repairs and renovation would cost. It is advisable to limit the risk involved by calculating how much would be needed for capital and the profit expected. This would help you decide if you would go on with it or not.

Reasons why buying and selling Lands is profitable in Nigeria

1. Passive Income possibilities

To make more money in Nigeria, one has to consider a good way of making money work for you. When you buy land, you can make your money work for you as you set up several ways to use land as a money-making machine. You can decide to rent it out for events, for parking space, or even lease your land for a specified period. Doing this will make you earn money passively while you face other businesses you have going on.

2. Value Appreciation

Unlike goods that depreciate over time, land appreciates most especially when it is in a good location. While location dictates the degree by which it increases, land appreciates regardless. If you desire to get more money for your land, you have to understand the purpose for which you need the land. Is it for commercial usage or residential usage? Yovau cannot get land with the intention of building shops in a place that is most suitable for a residential purpose.

3. Combat Inflation

Investing in the purchase of land will help you protect your wealth from being affected by inflation. When inflation touches the goods and services thereby causing a rise in their prices, your land is not affected by it because it is stable.  Buying land also enables you to increase the price of your land in line with the current market value which brings in more money for you.

4. High Return on Investment(ROI)

Getting lands in areas that are experiencing rapid development is a plus for an investor because it brings in a higher return on the investment made. To enjoy the high ROI possibilities of land, give enough time between purchasing and selling the land and make sure it is in a good location. ROI sometimes moves up to than 80% of the investment.

5. Constant Demand

Regardless of times and seasons, Land is always in constant demand throughout the world. In Nigeria, hardly a week goes by without people needing land be it for residential or commercial purposes. The truth is that land will always be in constant demand and people be willing to pay for it or pay even more, especially when demand increases. The increase in demand automatically leads to a decrease in supply. Only those who have lands for sale can explore this moment of shortage in supply to sell at higher prices to those who want it.

6. Low Capital Investment

Compared to developed properties, land purchase allows low-capital investment. While developed properties are sold after the calculation of all the money spent to build it from the land to the structure. This may turn out to be high. If you do not have much to set up a structure yet, you can buy land first and decide on what to do with it in the future. You can decide to set up a structure on it or leave it for some time before selling it.

7. Low Maintenance Cost

When you purchase an already-developed property, there will undoubtedly be a need to maintain it. You will need to make some repairs, conduct renovations, and general maintenance on the facilities in the property. However, an undeveloped land needs little or no maintenance.

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