SOME COMMON MISTAKES
TO AVOID WHEN BUYING/INVESTING IN REAL ESTATE IN NIGERIA
INTRODUCTION
According to
Wikipedia, Real estate is property consisting of land and the buildings on
it, along with its natural resources such as crops, minerals or
water.
Real Estate is one of the best assets
not just in Nigeria but across different countries.
Through Real Estate, lot of Investors
have been able to increase their net worth and returns on investment (ROI) .
Most were able to achieve their
financial goals faster than they earlier thought they could, establish a great
opportunity for their families, and secure a stable retirement plan.
There are various types of Real estate
people can buy or invest in according to their interest or financial prowess.
These types of real estate includes;
I.
Residential: These includes; Duplexes, Triplexes, Townhomes etc.
II.
Commercial: These includes office spaces, Retail space including fast food
outlets, grocery stores, parking lots and garages.
III.
Industrial: These includes Storage warehouses, Manufacturing plants, Research
and Development parks.
IV.
Lands:
Undeveloped raw land, Farms etc.
However, trying to invest in Real
Estate is not a child’s play, with the right knowledge, skills, and
determination, you’ll be able to make money buying and selling Real Estate.
Otherwise, one may make a deadly mistake by falling into the hands of scammers.
The following below are mistakes you
should avoid when buying Real Estate in Nigeria.
NOT ENGAGING
ANY PROFESSIONAL
Yes, it’s fantastic and a great pride
to be an Investor in Real Estate or become a Landlord, but what channel/medium
did you use to achieve this? Did you just see a random flyer somewhere and
contacted the number on the flyer or did you just walk up to your friend
telling him you need a land and he in turn recommends to an omo-onile?
One major mistake a lot of Investors make
is not engaging any professional when getting a property of their choice. Some
just manage to pick anyone not knowing whether the person is a professional in
the job or not. This is the easiest way to lose your investment if that’s what you
want. Of course, the reason for purchase of your property is to yield profit so
I strongly believe you wouldn’t want to lose your investment. So, for a greater
ROI, you must involve the activity of a professional before embarking on the
Journey of being a Real Estate Investor or a Land owner.
To
Engage the service of a Professional, click here
POOR PLANNING
BUDGET
Before engaging in any business/purchase
of an item, no matter the type of business or what you want to purchase, you
must have gotten a budget in mind.
You can’t go to an auto dealer’s shop
to get the latest Mercedez benz with a budget of Peugeot 504. Many investors
fail to make a proper planning budget before getting a property thus making the
wrong choice of property. You must have a first-hand purpose on why you’re
acquiring a property, the financial budget of it, your expected return on
investment, and many more. This helps to make the right choice of property you
plan to purchase.
To
Engage the service of a Professional, click here
NOT
CONSULTING THE RIGHT PROFESSIONALS
The Economic space in entirety is a
Jungle and the Real Estate Industry is no exception, we all know what happens
in a Jungle, you need every bit of your survival instincts to survive there.
In a Jungle, you have the Strongest,
Bravest, wisest, the most foolish and weakest of all animals, In all, these
animals rely on what they possess internally to displace/outwit other animals,
that is the Jungle for you. Relating this to the Real Estate Industry, there
are quite a good number of professionals out there and there are also imposters
out there calling themselves Realtors.
It’s quite sad that some investors
treat their “investment” or “prospective investment” without caution. This is a
fatal error consulting the wrong professional, it’s almost like you’re not
engaging any professional at all. Just like the adage which says, “when the
blind leads the blind, they’ll both eventually end up in the pit. Therefore,
never underestimate the guidance of a professional Realtor in getting a
Land/Housing property, if you truly value your hard earned money.
To
Engage the service of a Professional, click here
URGENCY
Rushing things will always lead to one
mistake or the other, in fact an anonymous quotes once said that Rushing
towards a goal is a sublimated death wish. Being in a hurry to acquire
property may not be the wisest decision in the long run of your investment. You
actually need to take your time to ensure you’re selecting the right property
for your aim of acquiring it. Another
point is to avoid “hard I known”. Take
your time, run a thorough background check on the property, documents,
agreement, and others. This may save you a lot of headaches in near future.
To
Engage the service of a Professional, click here
INVOLVING
EMOTIONS
According to Friedrich Durrenment,
“emotions have no place in business, unless you do business with them”.
When buying/investing in Real Estate,
Investors need to push emotions aside, that your
brother/sister/friend/nephew/niece/neighbor works with a Real estate company
doesn’t necessarily mean you should buy everything they bring towards you
without doing your own due diligence by ensuring those documents are actually
original.
To
Engage the service of a Professional, click here
NO PROPER
INVESTIGATION
This is the inability of not engaging
in a full investigation of the property you want to purchase. With proper
investigation, it ensures that all information concerning the property you
intend to purchase are correct and not fake. Also, to make sure important
details concerning the property are well documented. For instance, the
Land/property title is correct and properly registered. As stated above,
consulting the right professional like a property Lawyer can help solve any
issue that might relate to wrong documentation.
This section can’t be overemphasized,
the inability to procure a proper research can easily lead to one losing his
investment when any issue comes tomorrow. Investors should endeavour to
properly research the property they want to buy for the safety of their
investment, run a background check, make sure the property is the perfect
choice for the purpose of their investment.
To
Engage the service of a Professional, click here
NO INSPECTION
Another grave mistake many investors
make is not going to inspect the property they want to buy, not even once or to
send a trusted member of the family. They blindly pay for a property trusting
that the company may keep to their own part of the bargain. Unfortunately,
things don’t work that way, ensure you go for an inspection of the property
you’re interested in buying before making up your mind on payment. If possible,
visit again and again before finalizing your payment with the company. Also,
after payment, request the allocation of your property and start fencing
immediately if possible.
In conclusion, investing in real estate
comes with lots of benefits; from the appreciation, the advantage against
inflation to the positive cash flow, Long term financial security, Tax benefits
and many more. Also, knowing how to tap through its opportunity can cause a
drastic change in one’s financial goals with a maximum ROI.
To begin your Journey of becoming a
Real Estate Investor, click here or call +2348169420407 or you can equally send
a mail to oscardeltaglobalservices@gmail.com.
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