From 2010 to 2019, Nigerians have invested over 600 million dollars into the Africa real estate market and Lagos being one of the most expensive cities in Africa has experienced significant growth in its housing sector. Agreeably, real estate has successfully integrated itself as a factor to be considered in scaling up on the income ladder. However, there are a few pitfalls in the market if not done properly.
Here are the 5 guidelines to follow if you want a secure and profitable investment:
1. Find Worthy Locations
Keep an eye out for promising locations or locations that have already deliver its promises. What drives real estate is population. Find where government, foreign and private investors are currently developing and go there to position yourself.
2. Don’t Underestimate the Power of Infrastructure
The value can skyrocket at any time just because the roads were built or a university moves to that axis. People love to live in an environment where social amenities are in place.
3. Property Documentation is Important
Do your necessary due diligence. Ensure the following are in place:
- Contract of sales
- Deed of assignments
- Registered survey
- Approved building plan
- Land title documents
- Receipts as evidence of purchase
Note: Ensure you do all “I’s” and cross all “T’s”
4. Buy It When it is Affordable
There comes a time in the real estate market where the value of the land gets statics, it doesn’t reduce nor increase. When we say it is affordable, it necessary doesn’t mean it’s extremely cheap. It means its value is higher than the price. Be cautious when a property is extremely cheap.
5. Follow The Numbers
Don’t make your investment decision base on luck. Be more concerned about the figures. Your ROI is important!