Investing in real estate especially in Nigeria today can be very frustrating and risky because of the fact that there are a lot of dubious individuals in the line of business, although there are numerous examples of people who have earned themselves a fortune with real estate investment.
Moreover, regardless of the type of property you are purchasing or whether you plan to rent or resell it afterward, investing in real estate requires a good amount of cash — which makes it critical to take extra measures to ensure profit on your investment or at least save yourself from a huge loss.
1. Put your emotions on check.
Most of the time when buying a land, people listens to their heart more than actually thinking about it logically, which is perfectly fine. But don’t let your emotions affect your decision when buying your first or any investment property. Think of it as purely a business investment and logically negotiate to get the best possible price. Don’t forget, the better the price you get for a property, the better the odds that you will earn a higher profit from it.
2. Make sure you do a proper research.
Make sure that the property is situated in a location that will attract the type of people you hope to sell to, rent to, or live with so you can get your ROI (Return on investment).
Don’t forget, use your head, not your heart. Many good things in life come from following your heart. Property ownership is rarely one of them.
Remember investment isn’t about emotions; it’s about economics, that is to say that you also need to consider the price of what you are buying because the price also determines how fast you can have your ROI.
Another thing to put on check is your budget, buy base on your budget so you won’t feel frustrated and waste your time down the line.
3. Determine what you need first.
Going to a market with money without first deciding what you want can really be very risky; you may end up buying what you don’t really need. Whether you are buying a house or land you must first ask yourself why you need to, what do you really want out of the investments you are about to make.
Take your time and don’t allow anyone, including the seller or agent, to talk you into buying something if you are unsure of any aspect of the land. Weigh up everything before making a decision and be absolutely sure that you really want the land before submitting an offer.
4. Ask questions.
It is very important to ask vital questions so you can have good knowledge about what you are buying. There are good questions to ask which include but not limited to:
- What is the title on the land or apartment?
- Topography of the land?
- Sizes of the land?
- What are the Landmarks?
- Who are the developers?
- What’s the location?
- Does it have a good payment plan?
- What’s the project duration?
- What are the statutory fees or is it all inclusive?
- Are there hidden charges?
- Ask for the FAQ of that property you are buying into especially an estate land.
5. Do your Chatting.
This is my favorite part because it has helped proven a lot right and wrong. You must check to know if the land you are buying is free from government acquisitions or not. There are steps I advise my clients to follow to confirm, this might help you too.
- Go on an inspection to sight the land’s location to know and see for yourself or send a representative you can trust.
- Take coordinates of the entire land or estate. I usually advice my clients to go with a surveyor to do that, or ask the agent or company for the survey document of the estate for sighting.
Alternatively you can ask the agent for the land coordinates so you can go with it to verify in lands if the land is free or not. But most times they will give you coordinates that does not belong the particular area you are buying from, so you won’t discover any future treats.
Don’t forget use your head, not your heart. Many good things in life come from following your heart. Property ownership is rarely one of them.
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