Real estate investment is a profitable business venture in Nigeria that brings long-term wealth creation for those who have good knowledge of how the industry works. No doubt real estate has made many investors rich over the years and investors are still making huge amounts of money from it despite the negative effect of the covid-19 pandemic on businesses all over the world. However, just like every other investment, the real estate sector has its own secrete for successful investment; without it, you will likely lose your hard-earned money.
Regardless of whether you are a novice or a real estate professional, real estate investing requires a good knowledge of the process of investing right. Getting started in real estate investment can be pretty straightforward – you need to follow due process. Although it is straightforward, it requires a lot of work and it can be frustrating to first-time investors as they often make mistakes that could cost them lots of money.
To avoid the slippery slope that can bankruptcy or financial frustration, it is essential to look out for common mistakes when investing in real estate. So if you would like to make millions investing in real estate, this article will guide you on how to avoid mistakes in real estate investment.
Let’s dive in.
Work with a reliable real estate professional
This is the most important determinant in achieving your real estate goal void of complications and it cannot be overemphasized. You see, working with a real estate professional will save you a lot of trouble. Although seeking the guidance of a reputable real estate expert is quite expensive, but it saves you a lot of time and prevents you from being a victim of a property scam. Because a professional realtor has the qualification/ understanding of the legalities involved in legal contracts, so they are equipped to deal with complications that may arise.
So when you are working with a real estate expert, know that you are getting their years of experience which includes both their failures and success.
Engage In Property Research
The next stage is researching the properties you want to buy. This stage is time-consuming – it can last for months, even weeks. Because you need to learn about the property you want to buy. It is very important, almost as important as the investment itself; Because a minor misstate can cause you to lose your life savings. Also, you need to ensure the property fits the goal you are acquiring it for.
This process often tedious and time-consuming, but using a real estate agent makes it easy as the agent will be responsible for sourcing the property. All you need to do is give him details of the type of property and your desired location and he gets to work.
Here are some questions you should ask about the property you intend to invest in:
What is the neighborhood like? And what is the fate of the neighborhood in terms of property appreciation and development?
This is very important. As an investor, you wouldn’t want to invest in a neighborhood with a low property appreciation value. It is bad for business. So you want to invest in an environment with high property appreciation value like Ibeju-lekki in Lagos state where you get a good return on investment(ROI). Experts say the value of properties on Lagos island appreciates every 3 months and that of Lagos mainland appreciates every 6 months.
What is the state of the property at the moment?
This is very important – especially if you are buying a house. It is very necessary you know the state of the house you are buying so as to know the market value and cost for renovation. Failure to do this may cause you to spend above your budget. So before making payment for any property, make sure you go for the inspection yourself to check out the state of the property.
Is the property a good fit for long-term investment?
Real estate investing is far from being a get-rich-quick scheme rather, it is an investment that can build wealth and provide a legacy for your children.
How Safe is the property?
The safety of a property is very important. When caring out research on the property you intent to buy, it is important you take the safety of the property into consideration. Is the person selling the property the rightful owner, does it have the right documents, is it located in a calm environment? these are things you should look at before making payment.
Be aware of the laws and regulations
It is of vital importance that you understand the laws and regulations bind the city, and neighborhood where your investment property is situated in. You should be aware of these laws and how it affects you as an investor. Because government policies can have a negative/positive effect on real estate investment.
Before investing in real estate, it is to have a good knowledge of the market in the city/neighborhood you intend to invest in. With this knowledge, you will be able to evaluate the value of the property. Again this is another area where you need a professional realtor. They have a piece of very good knowledge about the market and with this knowledge, they can easily evaluate properties and negotiate on your behalf as their client ensuring you get the best deal.
To avoid the slippery slope that can bankruptcy or financial frustration, it is essential to look out for common mistakes when investing in real estate and try to avoid it as much as possible. And the only way to do this is to work with a reliable real estate professional who will guide you throughout your investment process, ensuring you get nothing but the best deal.
This is what Bethel realtors and mgt limited are known for. We not only ensure our clients get the best deal but with peace of mind and are satisfied with every investment they make. At Bethel realtors, We ensure full-fledged after-sales service support to our customers, backing them even in their smallest of needs.
Our vision is To demystify all inherent challenges associated with land and property acquisition, development, and management in Lagos State, Nigeria, and Africa.
Need real estate experts to help you get the best real estate deals in Lagos state? Call Bethel realtors on 09024554979, 08034503952. You can also visit our head office Suites 201 & 202 Akord shopping mall, Bogije, Ibeju-lekki LGA, Lagos state.