MAKING REAL ESTATE INVESTMENT: DR. RIT 1.0

I am Dr. Taofiq Raimi- a very experienced real estate developer and practitioner among other construction industry expertise and professional accolades. Today, I have chosen to enlighten my audience about making real estate investment decisions based on my nearly 30 years’ of active professional practice in the sector to the top. This piece will benefit both new-comers and veterans with interest in property acquisition either for personal accommodation or return on investment.

?First, let me assure interested persons that there is no time too late or early to invest in real estate. Second, one cannot be too rich or too poor to make an investment into real estate.?

?1.?????4 TYPES OF REAL ESTATE

There are four (4) major categories or types of real estate one can decide or choose to buy from:

1)?????Residential e.g., Housing and Housing Estate

2)?????Commercial e.g., Shopping Mall, Market Stafl, Banking building etc

3)?????Industrial e.g., Warehouse, industrial estate among others

4)?????LAND e.g., bare land, not yet developed etc

?2.?????MAKING REAL ESTATE INVESTMENT

1)?????You can start small or depending on your income or savings or cash flow.

2)?????You can buy and pay for any of the above outrightly (at once).?

3)?????You can buy and pay piece-meal from your savings or projected revenue or mortgage

?3.?????REAL ESTATE INVESTMENT - VARIETIES

1)?????Low Income properties e.g., with sale price within 5million Naira in Nigeria monetary currency (Naira). This category is often for bare LAND in suburban locations or affordable and low cost housing.?

2)?????Medium Income properties e.g., with sale price within 15million Naira. You can get both land and medium cost houses in some locations in Nigeria at this amount though depending on location and size.

3)?????High Income Properties e.g., with sale price above 20million and in hundreds and Billion Naira.?

?4.?????WHAT YOU SHOULD LOOK OUT FOR IN MAKING REAL ESTATE BUYING DECISION

There are many factors but I will highlight only three in this edition:

1)?????????????TITLE: What type of title is covered by the land or landed property (ie building or house or shops or commercial properties etc)? Is it Certificate of Occupancy (CofO), or RofO or Registered Power of Attorney (PoA), Registered Deed of Assignment or Deed of Partition, or Letter of Conveyance or Registered Sale Agreement on Local lands or ordinary Receipt of Purchase (though not enough) or no title (run away from such). The best title is confirmed genuine Certificate of Occupancy issued by an approving government authority, usually the Governor of a State in Nigeria or the Honourable Minister of the Ministry of Federal Capital Territory. Land with CofO gives greater comfort and are usually far more expensive than those with other lower grade titles.?

?2)?????????????LOCATION: It is said that location is everything in real estate acquisition and investment. Location here could mean land located within a developed area in a given urban centre, or closeness to city centre within an urban area or major road easily accessible given existing primary and secondary infrastructure (road, sewage line, water connection, power and telecoms facilities etc). Land in urban centres are more expensive than those in semi-urban or rural areas. Land and properties in some developed States in Nigeria are more expensive than those in other states. Property values in Lagos, Abuja, Portharcourt are more expensive than other States in Nigeria. Even within any State, the value of properties differs across locations within it.?

?3)?????PRICE: How much do you have to spend on your real estate acquisition? How much is your income or savings? How much do you wish to allocate to buy property therefrom? Do you have a regular source of income? Do you anticipate funds based on your revenue cash flow? Are you funding your acquisition through salary or business income stream? Whichever source, you can acquire property at any level since you can choose different payment options: outright or piece-meal for the length of a property development (ongoing projects) or through mortgage. There is an important concept called ‘Affordable Housing’ or ‘Affordable Property’ whereby a buyer acquires property with a share of his or her income without affecting other needs requiring expenditure (children education, food and clothing, family support and minimal lifestyle expenditure). So if you cannot immediately buy into ‘big homes or properties’, buy self contained, one bedroom, market stall (instead of lock-up shop), semi-detached instead of fully detached and so on. If you have bought once, you can buy more and more!

If you want a list of genuine and good properties to buy for accommodation or investment in Abuja, Lagos; Nassarawa, Ogun, Oyo, Ekiti, Rivers State (PH) 0or other specific locations, contact me now. What are you waiting for?

To be continued…

Dr. Taofiq Raimi, DBA UK, MBA. FNIQS, RQS, FIMS UK, FCIA, PRINCE2PM, MNIM, MNIMN, MICM

President/CEO RITVALUE CONSULTANTS (Abuja, Nigeria)

Email: [email protected]?Telephone: +2349031336387

#Real Estate #Property #Housing Finance