7 Mistakes You Should Avoid When Buying Real Estate In Nigeria
Just like any other business, there are mistakes you should equally avoid when buying real estate in Nigeria.
Real Estate is one of the best assets not just in Nigeria but across different countries. It has lots of investors being able to increase their net worth and Returns On Investment (ROI) through Real Estate.
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.
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 mistake just like Mr. Taiwo who without proper research invested in a 4-bedroom apartment at Lakowe, Ibeju Lekki because he was in a hurry to move his family to Lagos. Luckily for him, he only made a part payment of a supposed N15 Million apartment before he found out he has been operating with a false property document.
Therefore, it’s very important that you religiously follow through with this article to know those mistakes you should avoid when buying/investing in Real Estate.
- Not Engaging any professional: One major mistake some 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. This is the easiest way to lose your investment if that’s what you want. Of course, I know that’s not what you want. So, for a greater ROI, you must involve the activity of a professional when dealing with property or investment general.
- Poor Planning Budget: Many investors failed 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.
- Not consulting the right professionals: 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, that eventually ends 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.
- Urgency: 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 original aim of acquiring it. Another point is to avoid “hard I know” 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.
- Involving Emotions:I heard a story of a woman that invested in a landed property with a Real Estate company just because her little sister was undergoing a service year (NYSC) with this company. So, out of emotion and also to encourage her sister, she decided to key in with them in one of their property plans of 6-month payment. Little did she know that the company hasn’t fully acquired the land as they should, they don’t have any proper documentation and others. The land was confiscated by the government for a supposed project and the investors weren’t compensated because the land wasn’t theirs yet.
Meanwhile, the woman is working very hard to get back her fund from the company but as you know not without the stress associated with such problems. This is problem won’t be there if she didn’t involve emotions when buying the property and if she did the proper investigation of the property. Check out the next mistake to avoid and get more info on the proper investigation.
- 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 is 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. Just like I stated above, consulting the right professional like a lawyer can help solve any issue that might relate to wrong documentation.
This section can’t be over-emphasis, inability to procure proper research can easily lead to one losing his investment when any issue comes tomorrow. Endeavour to properly research the property you want to buy for the safety of your investment, run a background check to make sure the property is the perfect choice for the purpose of your investment.
One of my Client once had this kind of ugly incident concerning a fake document to the intended property, he wanted to purchase at Mowe, Ogun state. Fortunately for him, he had a professional lawyer who was able to detect in time the fake document being presented by the fraudster that called himself a real estate agent. Avoiding this particular mistake will save you so much headache from fraudulent companies and even individuals.
- No Inspection: Another grave mistake many investors make is not going to inspect the property they want to buy, not even once. 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, 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. Watch out for my next article to know how to you can tap through the various streams available in Real Estate.
Dennis Isong helps individuals invest right in real estate. For questions on this article or enquiring about real estate email: dennis@landproperty.ng or whatsapp/call +2348164741041
