HOW TO BUY A PROPERTY IN NIGERIA
BEFORE YOU BUY THAT PROPERTY
The first part of this blogpost explains the questions you should ask yourself before even embarking on a Property search. WHY??WHY DO I WANT TO BUY A PROPERTY?
Oftentimes we hear the phrase “Start with your why” (SWYW).
You want to start a business venture? You hear “Start with your Why”, in the same vein you want to invest in Real Estate? Start with your Why. Never set out to buy a Property for buying sake
Your WHY is very apt because it would determine your choice of Real Estate investment as there are variants within markets and it would also guide you on the right questions to ask.
Your why may include one or more of the following
- You have some idle funds, depreciating somewhere and you want to put same to good use for future returns i.e Capital Gains or Capital Appreciation.
- For immediate cash flows i. e Rental income.
- A country home or relaxation spot to getaway during some weekends.
- You want to build your dream home
- Legacy for your children
- Retirement plans i.e for future cash flows
- Asset portfoilio building for your business for easy collateral when you need a loan.
Once you are sure what the WHY is , then you can commence your search to find options that suit your WHY. The following questions would then guide you when discussing with a REAL ESTATE PROFESSIONAL to the best choice.
- WHERE IS THE PROPERY LOCATED??- The 3 Real Estate passwords. Location!!!, Location !!!, Location!!!! remains ever green and relevant in getting the right deal. What is the potential in the area? Location goes beyond is it far from my friends house or my current house, if you are buying for future capital gains your questions about the Location should border on the Economic potential of the area, are there major Government projects coming up in the Area?, Are major access roads being constructed? Etc. If you are buying for immediate Rental income/Dream Home, questions should border on , what is the proximity to good schools, hospitals, shopping malls, leisure centres, What is the neighbourhood security like?
- WHO IS THE OWNER/WHO IS SELLING ? Is it a Site/service scheme?( this refers to buying Land in an Estate where the developer provides basic infrastructure but you build your house yourself) Is it a construction project, where the developer is building the houses and selling ? Who is the developer? Who is the Man/woman behind the brand? What have they done before? Where is their office located? Do they follow through and deliver on projects. Your broker should be able to provide you all the information you need to know you are buying from.
- WHAT IS THE TITLE ON THE PROPERTY? Property Acquisition is an exchange of rights expressed via documents, the title is your legal hold on the Property, it determines whether you really own the property or merely occupying space till the real owner comes. When you buy a Property you do not move it from where it was to your house, what you go home with are title documents which confers ownership on you.
We at Modaville Realties often refer to it as your Land/ Property particulars. Just like you know your vehicle particulars, you should also know the Particulars or title of the Property you are about to buy. There are no two properties exactly alike , two properties might be standing next to each other and there is a price variance because Property A has a better Title than Property B.
If the title is being processed, e.g Excision in process, C of O in process, you are buying the integrity of the developer and their promise to follow through . If you are risk averse, you might want to save yourself the trouble and buy into a project where all the relevant documents have been concluded, though they are usually more expensive, you are paying more for the peace of mind that you are desire.
- WHAT IS BEING SOLD? If you are about to buy Land, you should know if it is a serviced plot (i.e within an estate) what amenities that would be provided and the associated costs too or Regular plots. Usually the extent of the infrastructure to be provided by the developer would determine the developmental charges and all.
- WHAT ARE THE ASSOCIATED COSTS??-Buying a Property is different from grocery shopping , the price displayed on the product online , is not always all there is to it. There are costs for documentation or survey or infrastructure and Professional fees as the case maybe. You should know your budget and projections and be sure to follow through to pay all associated fees so you can get all relevant documents. Even a renter pays other fees apart from the rent, so it is with a Property purchase .Enquire about these charges so you can properly project.
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