Starting Out in Property Investing
These days people approach me and tell me they want to buy Lands and when asked “why”, they really can’t give concrete reasons for their decisions. Now just because we hear that property always appreciates (which isn’t always true) and we know its the “next” best thing, that doesn’t mean you should buy everything thrown at you in the name of LAND! There should be certain criteria that must be met before you go on to make that purchase.
Questions like "Why, What, Where, Whom, When", have to be asked and answered appropriately to get the best value for money.
The "Why" question helps you determine the purpose for purchasing a property, for instance: Would it be used to build a home? Is it strictly for the return on investment? would it be a long term investment or short term one? etc all these have to be clearly stated so you don’t buy whatever comes your way.
"What" seeks to determine how much money would be set aside for this purchase. Many times for starters "What" comes before "Why" or go simultaneously, however it comes, the idea is to determine how much goes into the budget. It helps narrow down the search and gives you more value for money.
"Where" would you want the property to be? (very important). "Real estate is all about location and location is real estate" (except you have the means to acquire a large expanse of land and develop from scratch if not you should be very concerned about where you are purchasing a property). Its the location that would determine if the property would be used for a shopping mall or a farm. It helps to a great extent determine how long or short an investment has to be before it yields great returns, its proximity to development, Social amenities, Infrastructure are also factors that would influence the market value of the property.
"Whom": In a sector that is still very much delicate and lacks existing structures to enforce law and order in the sector. I would say one ought to be careful when one transacts business in Lagos Nigeria especially land transactions because all isn’t always as it seems. Be careful whom you buy a property from and be careful not to append your signature on what doesn’t benefit you. Study, Research, Understand every document before you append signatures and make payments because that could be your only life line.
"When" do you buy a property? You should buy a property when you're sure you would not be requiring those funds in a while (property investments take time to liquidate), You should only head to the bank to make payments after you have done due diligence on the property i.e. when you have taken time out to verify the necessary documents from the appropriate authorities and have consulted the services of an "experienced" lawyer who has taken time to review all the paperwork before appending signatures and lastly ensure that you have taken out time to do a proper market research and you are sure you have a great deal in your hands only then can you head to the bank.
I hope you've learned something new and you’re better equipped to buying that property of your dreams.
Confidence Iwuoha (Realtor/Property Consultant)
PropertyPort Nigeria (www.propertyport.com.ng)
For Enquiries contact me on 08064709273, 09084544886 or send a mail to [email protected]