It is no surprise that you need a guide for saving money for your first real estate investment in Abuja, the capital city of Nigeria.
Abuja comes with the finest of things that can keep you spending endlessly. From the nightlife to fine and high-brow restaurants, parties, and the general need to live up to the standard of life Abuja offers. Saving can become a far-fetched dream, let alone saving money to invest in Abuja real estate.
This guide will give you helpful tips on how to save for your first real estate investment in Abuja.
First, let’s discuss what real estate is.
Real estate is simply put, the land around us and structures erected on the land. These structures include homes, offices, shops, warehouses, etc.
If you own, buy, sell land, build houses, etc., you are involved in real estate.
Now, let’s explore powerful money saving tips for your first investment in real estate in Abuja.
1. Set a financial goal
You need money for almost every purchase. The first step is your decision to own or invest in real estate. If you had a bulk of money ready, you probably would not be reading this.
Next is to determine how much you will need for this investment, as prices vary from state to state in Nigeria. This will require a little research. You can ask realtors in Abuja who are close to you.
Abuja has a variety of neighborhoods, and land prices will differ according to the location of the property.
Setting a financial goal will help you determine how much you need to save monthly or weekly (based on how much you earn) and how long it will take to save the required amount. Your financial goal must be time-bound.
Also Read: How Land Scams Work in Abuja
2 Make your savings deposit automated
Saving is easier said than done. There will always be something calling for the attention of your money; some necessary and others not so necessary.
Arrange with your bank to deduct the amount you intend to save from your bank account on a designated day into an account dedicated to your savings. Most Nigerian banks offer this service.
You will also not be able to withdraw from this account until a stipulated time. There are online saving platforms as well like Piggyvest and SumoTrust. Choose a place where your mind can be at peace.
3. Cut down your expenses
It is no news that the cost of living in any Nigerian state is currently on the high side. Basic expenditures like transportation fares, food, rent, etc., are already eating deep into your finances.
Abuja is one of the most expensive states to live in Nigeria. Regardless, you and I know there’s always something you can let go of that isn’t so necessary. Some of these things include:
- Clothing items: Do not buy that extra shoe, bag, wristwatch, or clothes. If it is not a necessity. Let it go. Also, try to convince yourself to save the cost of every item you forgo. If you were willing to spend money to buy something you don’t need, you should be willing to save it instead. Another tip to save you from always buying clothes is to buy quality clothing. It will be expensive, but worth it. Low-quality clothing will make you always feel like you don’t have enough clothes to wear.
- Transportation: Limit the use of private rides if you don’t own a vehicle. If it is necessary for you to use these rides, then find a partner to share rides with using a public transport bus or taxi will save you some money.
- Food: Cooking at home has become almost as expensive as eating out, but, it is still not as expensive. plus, you can buy your foodstuff in bulk to save more money. Limit your visits to pricey restaurants. What’s better than fancy pictures for the gram? It’s your solid investment in real estate.
- Dating: Limit the partners you date. Dicey as this may be, relationships need financial maintenance. Having more than one partner means more expenses, especially for a man living in Abuja.
4. Increase your income
Investing in real estate this year requires a good amount of money. Saving for your first real estate will take longer if you are saving from a low income.
If you’re a business person, you can increase your marketing to be able to increase sales or look for more profitable products to sell. Get part-time jobs if possible. You can also learn a skill you can offer for a fee as a freelancer.
Here are some skills you can learn: graphics design, blogging, SEO writing, digital marketing, data entry, social media management, etc.
Hasten the process of saving for your first real estate by increasing how much you earn.
Also Read: What Are the Fastest Developing Locations in Abuja for Real Estate Investment?
5. Become a realtor
Becoming a real estate agent may not be a walk in the park, but it is rewarding in the long run. If you have passion enough and are armed with the right knowledge and connections, you can become an independent real estate agent.
Otherwise, you can become an in-house agent for an established real estate company. This way, you’ll be able to learn the business faster than you would as an independent realtor. You may be wondering how this relates to saving money for your first investment in Abuja real estate.
When you sell a property, you earn a commission. Agents earn up to 10% of the total cost of a property, it could be more in some cases. Here’s an instance, if you sell a property worth ten million naira, at a 5% commission, you’ll be making 500,000. Imagine selling up to five or ten properties. Also, if you are an in-house real estate agent, some companies reward their agents who perform well with land, bonuses, etc.
Conclusion
Investing in real estate, especially in a city like Abuja is a top move, as there are hardly any losses in real estate. You can begin your journey of saving money for your first real estate investment by taking a decision.
Find out how much you would need, and draw up a financial goal of how much you to save and how long it will take you to hit the target. Automate your savings. cut down on your expenses. start saving, and increase your earnings so you don’t fall back on the money you’ve saved for survival.
Finally, you can become a real estate agent. With enough determination, you will be able to invest in your first real estate in the beautiful city of Abuja.
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