90% of billionaires they say, got their wealth through real estate investments. Do you agree?
While you take a moment to ponder on the aforementioned quote, would you like to consider a friend or colleague whom you have a personal relationship with: invest in a property, and is yet to reap returns
Oftentimes, you would find that thriving businesses are backed by other equally flourishing income streams. This has propelled more people to continually toll that path. But with all the market noise and saturation of estate agents, how would you get a property that stands out?
Being a business owner means having to innovate constantly and navigate change. That is why we want to help you figure out your next move.
Guess you are wondering why we have taken it upon ourselves to solve this great puzzle.
With over 50 estates spread across 15 states in Nigeria, we have continually discovered affordable land in fast developing areas and made it known to all our clients and prospects t. As a loyal client, we show you how you can make money to buy land and build your own home.
In doing this, we have come across victims who share very touching stories of how they lost all their savings. Some go the extra length of taking up loans from their companies to secure properties. Hence, our desire to bridge the gap in information by enlighting our propsects on real estate problems to avoid
LACK OF PROPERY BACKGROUND RESEARCH
You want to acquire a new property. Indeed a bold step in the right direction.
While location is always a key consideration, there are numerous other factors that help determine if an investment is right for you. You don’t want to jump on that first without due diligence. Now take a closer look. Do you have background information of the proposed agent or company as the case may be?
With over 100 real estate companies in Nigeria with only a registered few, you would see that virtually everyone can open a small corner to operate a full scale real estate company. Some of these individuals and company are major reasons why prospective investors gave up on real estate investment. Trust issues, maybe.
Also, you would find that one major experience with the wrong team serves as a major blow to many others. Thus, giving off negative reactions that could last a lifetime. This affects both the concerned party and extensively, legitimate real estate firms who are perceived as illegitimate.
Recomended reading: 17 real estate investment guide for beginners
LACK OF PROPER PHYSCIAL INSPECTION
As cliché as this may come off, there should be an eye looking physically at the proposed property.
We understand the place of clients who live abroad which is why it is very good to send a trusted eye who understands what exactly you are looking out for or at least knows how to help you find the right assets. Sometimes, you see people sending relative and colleagues to check out a particular piece of property before acquiring such and that model has saved a lot of proposed investors from buying from the wrong hands.
Ibeju- lekki today for example has opened up so much that rental income has increased by a sky rocked amount.
Where people consider as bush has become fully residential and without going out to inspect properties in these area, you would find that some persons still hold archaic beliefs as to what obtains.
In a recent interview with a landlord in the eleko axis of lagos state, “Rent here now is 250,000 Naira for a standard studio apartment” he said. Before now, lands were sold at lower amount but development has brought about change. Thanks to the federal and state Government who have given room for industrialization and thriving business. SO, before you buy any property: Do well to go on an inspection. You can avoid most real estate problems by simply booking an inspection to see the property physically
Should emotion ever take the place of logic?
Investment is quite sensitive as it requires some significant financial investment.
Take for instance, you are willing to take up a housing project with limited cash and had the conviction to proceed using a loan.
Loans are convenient, but they may come at a big cost. You commit your future income to get property today at the cost of interest spread across many years. Be sure you understand how to handle loans of this nature and avoid high levels of debt or what they call over-leverage. Even experts in real estate are challenged by over-leverage in times of adverse market conditions as high debt obligations can put you under duress and make you expect very short term rewards.
Be clear on the terms of operations before you commence the process to avoid real estate problems.
UNDERSTANDING DOCUMENTATION PROCESSES.
One real estate problems most Newbie investors are concred of is title and documentaion. this is justifiable because it detrmines the future of your investment. Different lands are sold with various titles ranging from excision, gazette, certificate of occupancy and more.
The gazette for example will shows communitites that have been granted excision and hectares of land given by the governmen. It is inside those extracted sections of hectares that the customary family is qualified to sell to the general population. Still, be warned that you have to verify all land documents. I like pointing out to due diligence in all land transactions.
We have seen questions such as ”can the government revoke land with Gazette Title” ?. The answer is, Yes they can.
However, this is not a common trend and this can be to some reasons known to them if they decide to revoke. Maybe it’s for community infrastructure; it all depends on what it is. Also, note that you will be compensated as long as the land is within the excised land with a genuine land document.
Note that excision does not expire while C of O expires after 99 years. However, C of O can be used as a collateral while excision cant
BEST OPTIONS WITH LITTLE CHARGES
If you are offered a land with a government approved allocation for 500,000 thousand naira only, I hope you know that the worthy thing to do is RUN?
A good real estate agent would never sell such titled land to you except they is banking on your ignorance. Well, good thing is you are reading this book right now and undertanding how to avoid some of these real estate problems.
Major construction usually offers attractive pricing, the option to select amongst other amazing landmarks as boosters.
Look out for the area where these prices are given. One way to collect information about the prospects of the vicinity you are considering is to contact the right company. This will give you access to the long-term benefits and determines on how favorable or unfavorable the investment will be.
NOT HAVING A BUDGET
Before you consider any real estate investment, its good to look inwards and calculate what you can or cannot afford. Lack of plan could have a devastating backlash, and aslo is one of the most dengerous mistakes an investor can make. Rost real estate company opertate on a no refund policy. It means that investors gets to forfiet any deposit already made but could not complete the balance . So new investors are advised to have a budget of cost before even making an initial depsoit
In conclusion The real estate sector in nigeria is plauge by many irregularites and real estate problems will always arise, no matter how careful you are. However, that shouldn’t stop you from investment because you cann safe gaurd yourslef by paterning with verified real estate company with your intresest at heart. If you are new to the sector of real estate investment, our 17 guildes to real estate investmentcan help you with your journey