One of the most profitable sectors to invest in Africa, is the real Real estate sector. This is due to the steady growing already high population, resulting in a high demand for accommodation. Additionally, there is a return of African Americans to their motherland and various nations of ancestry, further increasing the need for befitting accommodation. Following this facts, some investors are making a fortune by pushing up property/rent prices in several cities across the continent, setting up luxury accommodation thus making the real estate sector ideal for potential new investors.
However, investing in real estate also means that you need to have the required knowledge on how best to make the best of your money when you invest in African real estate. Below are some proven real estate money-making strategies that will help you generate maximum profits. These strategies have been culled from several reliable sources, including Investopedia.
Long term real estate rentals in secure neighborhoods
A report by Investopedia shows that residential rentals are one of the fastest ways to make money in real estate. With the fast-rising population in Africa, there is always a need for shelter. You can benefit from investing in real estate in residential rentals in areas that are safe and secure; as well as neighborhoods with good schools and access to water and public transit. People want to walk freely and interact with the community without security risks; and making a safe location ideal for long-term residential rentals.
Short sales are ideal for homeowners who are behind their mortgage payments. According to Investopedia, short sales happen when a financially distressed property owner agrees with a mortgage lender to facilitate the sale of a property.
Short sales present money-making opportunities for investors in Africans real estate; because it does not require the investor to invest in renovations. While a short sale can take time, it has a high-profit return. Also, short sales are profitable since investors can negotiate the price of a property below its market value.
Vacation Real Estate rentals
According to a report by Right Era Properties, a vacation rental is a lucrative path to profits in real estate. Vacation rentals involve renting an apartment or house out for a short period. And with the growing tourism sector in Africa, vacation accommodation is a viable investment option.
You can earn lucrative passive income with vacation rentals in major cities as well as tourist hot spots on the continent.
Home renovation flips
According to Forbes, renovating and flipping homes is lucrative with a high-profit margin. Home renovation involves buying a property to rehabilitate and sell on the market. Available information on Flippers Prosperity revealed that negotiating and networking skills are essential in this part of real estate business.
Investors with excellent negotiating skills can earn a fortune in this market. Your negotiating skills and networking with contractors, agents, wholesalers, and other investors determine your level of success in this business.
Commercial real estate
According to Investopedia commercial real estate, are properties used for business purposes to generate income. Most commercial real estate developers add value to properties through renovations and upgrades for the purpose of increasing profit margins.
A creative investor can update and modernize a property to earn a fortune in real estate. If you can identify property areas that require value, consider commercial real estate like a shops, plazas e.t.c
There are also lucrative opportunities in the real estate market, primarily through lease options. Many investors earn rewards in real estate without significant capital when they venture into lease options.
A lease option as defined by investopedia, is an agreement that lets you buy the rented property at the end of a specified period. Note that the agreement prohibits the owner from selling the property to anyone else.
Investors can benefit from this trillion-dollar opportunity in the real estate markets.
The American Apartment Owners Association defined contract flipping as transferring the right to purchase a property to another buyer. The process involves signing the agreement of a property for sale and flipping the contract to a new buyer. Investors can make money with contract flipping by bringing buyers and sellers together.
Available information on Fortune Builders show that contract flipping is a great way for new and aspiring investors to start real estate business. New investors can act as an intermediary between property owners and buyers for rewarding opportunities.
In conclusion, looking at the aforementioned points on ways to make money in the African real estate market; ensure that you conduct an extensive research before investing or venturing into the market. Do not invest without good and extensive research, fact finding, market survey and foresight. Ensure to consider researching the property location, neighborhood and valuation before going ahead with the business. Investors who can think outside the box make good profits from the real estate market, but research is vital and prerequisite.