Is House Flipping Lucrative in Nigeria

House flipping is a kind of real estate business that involves buying a property,, usually a rundown property, flipping it and then selling off for a profit. Whether house flipping is lucrative in Nigeria is another story altogether.

When it comes to house flipping, there are lots of details involved, like logistics, property purchase decisions, flipping and pricing decisions. If you’ve watched property flipping shows, especially house flipping, then you’ve probably thought it’s easy to pull it off. Unfortunately, it’s not that easy, there obviously benefits, but there are also risks and disadvantages that we will get to in a moment.

Benefits of House Flipping

Good Profit Potential

The house flipping business has the potential for serious profit if taken seriously, and if all things work accordingly. Plus, with house flipping, you can achieve and get your ROI pretty quickly.

Professional Growth

One of the fastest ways to learn a great deal about the real estate industry is to go ahead buying property, flipping and selling. Plus, you also gather valuable experience and sharpen your management skills. From delegation, to managing resources, you will become a thousand times more valuable.

Flexibility

If you value flexibility, then you’ll love house flipping. Plus, no one is fighting with you over deadlines, you can work in your own time and you are your boss.

Opportunity to Build Your Contacts

You get to build great and solid contacts, building your network one at a time. Since you will be flipping house, you will need the contacts of contractors, lawyers, inspectors and real estate agents. A solid network will be useful for the future.

Risks Involved in Flipping Houses

Even though flipping houses are lucrative and you stand to gain a lot, you should also take a look at the risks because in truth, you also stand to lose a lot if you’re not as careful or as experienced.

Here are some downsides you should know about:

You can lose money

The same way you can make money quickly with house flipping, you can lose money quickly too. This is because sometimes, the property may have issues that bring uncertainty. You may buy a property that has way too many issues and needs a ton of money to brush up, and this could affect your profit margin. There could also be a market adjustment that may not go in your favour, unexpected expenses or a difficulty with offloading the property.

Holding costs

The longer you hold a property, the more the costs you incur. You may have to pay fees, taxes and insurance constantly, and your budget will take a hit.

Expensive

Flipping houses is an expensive venture and requires huge capital to pull off. Without enough capital, your venture may crash before it even begins. A successful house flipping will need lots of planning, timely execution and discipline, along with a proper strategy in place to help hold things down.

Unexpected expenses

When it comes to renovation or construction projects, there are always unexpected expenses that can become a pain. It is always best to add these unanticipated expenses to the budget, so that you can cover it without difficulty. Things like currency rates or other unfavorable circumstances may also quickly shoot costs up, especially in a volatile economy like ours. If this is not properly anticipated, it may take a toll on your investment and project.

So, is house flipping lucrative? Certainly. But you may have issues and losses without proper experience and guidance. We advise that you speak with us first before heading in full on.