4 Things You Need To Know Before Investing in Real Estate

zylus court
Zylus Court, Bogije, Lagos Nigeria.

We often hear people say they want to invest in real estate, but many do not know what to do or how exactly to go about the processes. 

It takes more than having an interest, or a wild dream to own a property. Being informed plays a vital role in ensuring one makes the best business decision. 

It is always safe to have an idea of what the journey may seem like before embarking on it.

Although there are different categories of properties (flat buildings, duplex, land, etc), having a basic knowledge of what real estate investment entails can help one navigate through the processes. 

Here are seven things to do before investing in Real Estate in Nigeria.

1. Learn how to spot a great location

 
 

zylus court

For a smart choice of location, one must be able to tell areas with the high potential of developing over the next few years. 

It is important to do your homework; this will not only help you in making informed decisions but the yield – financial and social – will also be invaluable. 

Is the town becoming dense and overpriced? Then it is time to pay attention to the outskirts. 

Over the last few years, parts of Ogun state close to Lagos have recorded a high level of immigration, an increase in infrastructures, and more construction of residential buildings and companies. 

You don’t want to be left out. Likewise, in learning about the future of a location and its prospects, it is also important to consider the history of the house, land, or area. 

Is it usually flooded during the rainy season? Is the area prone to social, political, or religious riots? Do your research.

Recommended Reading: Residential vs commercial real estate

2. Pricing

 
ways to detect a real estate company
 

Study the prices of Properties in the neighborhood and their trends. You should also compare them with the price listings in other areas. 

This will give you an idea of what is mostly on demand, their price range, and the monetary value you place on your property. 

Pricing demands that one does thorough research, this enables you to have a better understanding of the concepts of the business. You will get to know about the locations that best suit your needs.

Renovations are not directly proportional to monetary returns

Polishing up a building may not necessarily increase the value. The knowledge of this will save you from unnecessary heartache. 

In a bid to create good impressions and increase the chances of selling the property, some renovations may need to be made. 

However, buyers have different tastes and no amount of renovation will make a person buy what they really do not want.

But it is necessary to make effort. Keep the property clean, get rid of odors, etc. Yes, upgrading the building will make it more appealing to buyers, but it may add only a little or nothing to your wallet. 

You will not always get back every amount spent on renovations. It does not mean you will be at a loss either. 

The basic things are to maintain a balance between the two.

Recommended Reading: Real Estate Appreciation 

3. Negotiate

 
oluwatosin olatuoye
 
 
 

The ability to negotiate is one of the skills that differentiate successful business owners from mediocre. Yes, we know you have the money and can’t wait to become a land or house owner. 


But perhaps that property can be purchased at a lower rate? This also works the other way round. 

In selling, you should not be in haste to let go of a property. You may get better deals than it deserves. It’s also okay to listen to potential buyers; you may not always get to sell the property at the price you wish. And that’s okay.

Recommend Reading: Real Estate Cash Back

4. Real Estate is real business

 
lekki pride abraham adesanya
 
 

There is the temptation to be lax about property investment as it is not a ‘day job.’ But the level of commitment should be as much. 

Get information; be diligent in asking questions, and finding answers. You’d be surprised at how much many people who want to invest in real estate don’t know, not even the basics! 

You don’t want your money to go to waste. There are real estate terms you may also need to familiarise yourself with, this may help you in dealing with agents and buyers.

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