Real estate business is a highly sensitive investment and therefore one has to be equipped with the right information and knowledge before setting out to invest your money.
In Nigeria for example, there are various categories in real estate investment such as land, flats, bungalow, duplex for either commercial or personal purposes.
It is always safe to know what the journey looks like before embarking on one, therefore, we have gathered; 4 things you should know if you want to invest in real estate in Nigeria.
1. Learn The Market
It is very important as an investor to learn the market you want to invest in. Do not rely solely on information from friends and families, the best you can do is learn and do research to know the attributes of a good real estate investment deal. You need to know market values better than anyone because getting a great deal is the biggest advantage of real estate investment.
As time may have it, you might not have access to top-level information of the real estate industry and that is why you should also work with a real estate agency.
2. Good knowledge of location
As a new investor, you should some level of information about great locations in order to perceive the potentials of developing over the years or becoming a disaster. Good knowledge of location will help in making the right decisions more so having some research done will also help in making smart decisions.
Is the area developing economically? Recently Dangote oil refinery company is constructing an integrated refinery and petrochemical complex in Lekki which has recently opened the eyes of investors towards investing in real estate at that particular Location.
Is there an hike in the price in a particular location? Then it’s time to pay close attention to outskirts like Ajah, Mowe Ibafo, Magboro etc because these places have recorded quite a large number of ins over the years.
Having said all these one has to make thorough research in learning about the future/prospects of a location such as a climate change, and the likes.
3. Establish Your Budget
Having a budget in mind is key for any type of investment, you can easily get carried away with landscapes or aesthetic attachments when looking at various homes or picking out details for the renovations or renting.
Nonetheless, it is advisable to always establish the amount of money that you are willing to purchase the property for before looking and deciding on the best place to buy.
4. Base Your Decision On The Cost To Buy, Rent or Renovate
Everyone don’t invest in real estate with the hope of living in the house some of us buy it to resell or rent over the years for cash flows nonetheless when Looking for a property to buy, rent or resell, these important factors must be met: the cost to buy, the cost of improvements and how much you can sell or rent for after you renovate.
An average home in an up-and-coming neighborhood has the most potential for profit. Make your decision based on the potential for profits, not based on the home you’d personally like to live in if you are investing for commercial purpose.
Most importantly stick to your principles be it your preferred location, budgets and don’t overbid just to get your first deal done because you might end up losing more if you get into a bidding war. Always Know when to pass, stop or keep searching for the right deal.
