Investing in Real Estate in Nigeria
Real estate market in Nigeria is very competitive. If you’re not careful you will end up losing all your money and properties to fraudulent vendors or dubious agents. Successful investments in real estate leads to profitable investments so stick around as we discuss the Top 5 Strategies of Investing in Real Estate in Nigeria.
How to invest in Real Estate Business in Nigeria
1. Keep an eye out on promising locations
The last investor you would want to be is that investor that goes in when everybody is running out. One major thing that drives real estate in Nigeria is population, developing communities. Putting in the entire necessary infrastructure is fine but the affordable way of investing in real estate is investing in developing locations or areas that are likely to be developed either by the government or private investors.
2. Don’t underestimate the power of infrastructure
The value of property in some areas in Nigeria can suddenly skyrocket. Simply because new roads where built around that area or a university or hospital comes there. Because people prefer to live around areas where they can access some of their needs easily. That is why people prefer to live around cities or developed areas. So when investing in real estate in Nigeria look for areas that have good infrastructure like good roads, schools, hospitals, shopping malls etc. as all these can help increase the value of your property.
SEE ALSO: 5 Profitable Businesses You can Start with 50k in Nigeria
3. Documentation
This is very important in any real estate investment. Like I said earlier your real estate in investments and properties are all nothing if there are no proper documentation to backup your claim. Most times people overlook this especially when their relative or friend is involved they usually take them as witness with no proper documentation.
If you’re buying a property in Nigeria ensure you do all necessary paper verification and registration as this can make you lose your real estate investment in Nigeria.
4. Buy affordable
The only way of maximizing your real estate investments is to buy at an affordable and then sell expensive. There is usually a time where the price of every real estate market gets static and that is usually the best time to invest. When I say affordable I don’t mean cheap. Beware of cheap real estate investments they are mostly bad deals or scam. Affordable is when they value exceeds the price unlike cheap when you pay money and get no value in return.
5. Do your research
Investment decisions are not made based on luck or hope. Investments are made through careful research and strategic planning. Know the rate of development in any area you want to invest whether people are moving into that area or are moving out.
Land investment in Nigeria
Investing in real estate can be very rewarding and for many people before the money comes you have to put in your money, time and savings on the line. This decision should not be taking lightly because with such sacrifices the last thing you would want to do is to make a very bad investment in real estate.
So to avoid fraudulent vendors, dubious agents, fake documents, buying or investing in land that is a subject of litigation and a host of other distressing issues. There are two important things you should know about real estate investment in Nigeria especially when you want to buy or invest in land.
Legal questions you should ask before buying a land in Nigeria
- LAND VERIFICATION
In a bid to ascertain the true ownership of the land you want to buy. It is very important to request for the documents certifying the true owner of the land and also investigate the same at the land registry.
Doing this will help reveal
-the true owners of the land
-the nature of interest on the land and
-the survey plan
It’s also important that you do a physical inspection of the land. Wherein you ask people living around the area about the owner of the property. Make sure you verify the person or the real estate company you’re working with during the course of your transaction. If the property belongs to a real estate company you could go the extra mile of going to the corporate affairs commission (CAC) to ascertain the existence of the real estate company and also to check their online presence.
The land tactics, old and hidden buyers’ fees should also be ascertained example
-Ground rent
-Service charge
-Tax clearance
-Development fees etc.
Avoid paying in cash when investing in real estate and do not skip physical inspection of the property.
SEE ALSO: Mini importation Business in Nigeria – Best Strategies for Beginners
- PROPER DOCUMENTATION
The important of documenting your investments in real estate cannot be over emphasized. Ensure that your ownership to the land is properly registered and the right documents handed to you upon purchase in order to secure your title to the land.
With all that have being said I’m sure you now know what to look out for when investing in real estate in Nigeria and with a reputable real estate company in Nigeria.