3.9 C
New York
Sunday, December 4, 2022
spot_img

Beginners real estate investor tips

Beginners real estate investor tips

A real estate investment is a financial planning strategy that involves the purchase, management, sale or rental of property for the sole purpose of making profit, and so anyone who actively or passively engages in this buying and selling of real estate is referred to as an investor or real estate entrepreneur. Investing in real estate in Nigeria provides numerous options to create financial security, growth and wealth. It is one of the safe and secure ways to build and get in consistent revenue. Regardless of the economic slump, the real estate business in Nigeria is growing and people are taking available opportunities and making money.

Statistics show that only 37% of Nigerians were home owners in 2011. For potential investors and the general public, information is the key to filling this gap. Many people are hesitant or have not considered investing in real estate because they think it requires a lot of money, are not properly informed and generally are afraid of losing money to the wrong investment or people.

Although not for everyone, Real Estate investments takes dedication, research and planning. Are you considering investing in real estate and it’s your first time, here are a few things to consider:

Understand The Market

Learning about the market is one of the best methods to steer clear of issues when investing in real estate. You can assess the cost of an investment property by having a thorough understanding of your local real estate market. Know the average house or land value in the neighbourhoods you are considering and the potential rental or lease income for the property. Ask every question there is to clear your doubts about any and everything. Your chances of succeeding in real estate investment can be greatly increased if you devote the time and effort into thoroughly researching your local real estate market.

Start Small

Identify the property you are willing to invest in, if you have enough to start by yourself this is great, if not you can collaborate and share both risk and return after all its your first time. For Higher return on investment, you have to speculate and buy at the lowest possible price before the area or property goes up in value. However, for not very developed locations you have to be willing to wait for development, development drives up property value over time.

Real Estate
Voting is On

Check for Factors That Impact Value

Location is key. A property is worth what the level infrastructure in the neighbourhood is, the quality of the property and what renters or buyers in the market are willing to pay that area. Carry out due diligence check on the neighbourhood, market value etc. You should invest in areas with a good infrastructure and a growing population.

All great neighbourhoods have this in common:

· Low crime rate

· Great schools

· Access to parks and local amenities

· Access to medical care

· Family-friendly community

· Access to shopping malls and restaurants

· Places of worship

· Good walkability

· Good Infrastructure

All of these translate into high demand for housing when you want to eventually resell or rent.

Protect Yourself

The real estate market has great potential for investment, but like with any investment, you should exercise caution, do your due diligence. Before you start, educate yourself, find and surround yourself with professionals to educate and guide you on the legal components and documentations for real estate and the state in question and what to look for when you are buying including C of O, survey document, deed of assignment, a valid offer. The documents to also get when the sale is eventually closed. It is very important to work with professionals especially in the area because they better understand the laws and titles there.

Find the Right Partners-Agent/Developer

You might be shocked at how many real estate agents and developers exist, particularly in Lagos. Begin by asking friends and family for referrals and questions about their experience and customer service to ensure you choose the right one. Conduct some research: visit their websites and read online reviews about their track record. Beyond researching the company, research the people behind the company, their track record integrity, ethics, and delivery, this will help you decide the best partner(s) to work with.

Decide Terms

Although, it takes time to find and analyse all the options and decide whether they conform to your requirement and budget. You want to be sure to select the right property type, ensure that it is located in the right area, and have the right infrastructure. Here you have to discuss payment terms, timelines and handover expectations. Be sure you are negotiating the right price, with the help of a professional is necessary, payment structures and plans where available as so many developers now give flexible payment options and if you are getting a mortgage be sure to discuss and understand all the terms and charges.

Invest With Tomorrow in Mind

When it comes to investing in Nigerian real estate, the greatest selections are those that benefit you, the investor. Whether you intend to flip or hold and rent the goal is to profit more than you invested. You can also build the value of your property by making simple upgrades and command higher returns.

Real Estate investments when done right with the right due diligence has the capacity to build generational wealth with very minimal physical efforts.

Source: businessday

Related Articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Stay Connected

15,345FansLike
242FollowersFollow
5,600SubscribersSubscribe
- Advertisement -spot_img

Latest Articles