Real estate investments have evolved over the years and this has brought about new ways to diversify and make money via real estate investments. With increased ROIs and commitment springing up amongst the young and old, the real estate industry itself has become one of the top drivers of the Nigerian economy.
Land flipping is one of the many forms of real estate investment that can generate money for you. In this article we examine all there is to know about land flipping and how to go about it.
What is Land Flipping
Land flipping is simply the holding of land to sell at a higher price. It involves buying land(s) at a low price and reselling at a later time for a higher price. Also, it is rooted in the basic fact that land always appreciates when given the right time. While some lands may not appreciate as soon as others, land flipping relies heavily on certain principles such as buying in a suitable location, patience and foresight.
The right location determines how soon the value of the land increases, and how much profit the flipper will make off the land. Across Nigeria, there are certain locations known to reek of value. Lands across Lagos, Abuja and some specific places in Ibadan top this list. If purchased in certain parts of the FCT and certain areas of Lagos Island, it will fit perfectly into the description of the Flipper’s goldmine.
While location largely determines the profitability of a flipped land, patience plays an important role in the profitability as well. The value of the land continues to increase so even in the best of locations, patience guarantees a greater profit. This, may however, be a disadvantage in a case of changing demand. A change in demand makes it difficult to make as much as you intend to make but the demand always comes back to generate huge returns.
Foresight plays another important role in the profitability of land flipping. Foresight drives purchases of lands in places that have growth that many individuals are unsure of at a very low price, this purchase at a due time then yields a profit that many will not see coming. The ability to predict a change coming to an area and purchasing lands in that area ahead of the time of the expected change is an income generating skill in land flipping.
How Land Flipping Makes Money
It is common knowledge that the value of land appreciates after a certain time. This value appreciation of land is what land flipping banks on. The idea is to buy low and sell at the new appreciated price.
Low cost and ease of maintenance
Flipped lands are easy and relatively cheap to maintain. They are simply bought, held and sold at a later time. The singular fact that most times there are very few extra costs in maintaining the land makes it very profitable.
Here Are Some Benefits of Land Flipping
- Barren lands or lands without structures are much cheaper to buy than lands with properties on them.
- Flipped lands are easier and less expensive to purchase.
- There are fewer unknowns when it comes to land flipping: no windows to replace, no wiring to do, no damp, no leaky roofs etc. Essentially there is no building inspection to fail.
- There is less competition as not many people have the knowledge or patience to buy, hold and
- flip for a profit- Most Nigerians are only interested in “building a house”.
How to Flip
Research the land
Research involves finding out detailed information about not only the land but the location. The land must be checked to make sure it is not a communal land or property belonging to a family.. Foresight largely helps to simplify the process, this is because lands in underdeveloped areas are much cheaper to purchase than areas that are developed. Foresight sees the opportunity and the value of the very cheap land. Research also helps you put a timeframe to how long you’ll have to wait to make profit on your purchased land.
Buy only verified property
Buying a verified property definitely saves you energy and money in the land flipping process. After the property has yielded value, you won’t be able to sell off a property that is not verified and the time and money that went into the land becomes null and void. Buying verified properties means you can rest assured that you’ll have no issues in your dealings with the land.
Make improvements if possible
Flipped lands with zero improvements yield huge returns on investments, however, flipped lands with improvements yield even higher returns on investment. Land flipping is already a really great investment opportunity but it becomes even more profitable when it is improved. Improvements may be as simple as setting up a fence or even securing the title deeds of the property. Particularly because of the effort that goes into securing a title deed, properties with title deeds are known to have more value than properties that don’t.
In all, land flipping is such a profitable investment opportunity. Armed with foresight, patience and an eye for good locations, you could make far more than some of the highest grossing investment ventures. The major thing to be paid attention to is getting verified lands that possibly come with title deeds not only to verify them but also as a means of additional value.
At MeritAbode, we offer land flippers an opportunity to eat their cake and have it. We sell verified lands that come with not only the C of O but also the Governor’s consent. These title deeds guarantee a profit you can only dream of. Contact us and let’s get you started on the real time adventure of land flipping.