So you have decided to take the plunge. You have gathered your courage and kobos and you want to embark on the lucrative real estate investing train. This is a smart decision. Real estate investing in Nigeria is a great way to gain and grow wealth. It is not a guaranteed thing, but it is a relatively safe way to invest in your financial future. let us look at a few things to avoid, or consider when you invest in Nigerian real estate.
- Real estate is a popular investment option in Nigeria, but it’s important to be aware of the potential pitfalls before you invest.
- This blog post will discuss five common mistakes that investors make, and how you can avoid them.
Investing in real estate in Nigeria – here is what to consider
- Pitfall #1: Not doing your research
- Before you invest in any property, it’s important to do your research and understand the market. The Lagos market is different than Port Harcourt. Do your due diligence.
- This includes factors such as the location, the property type, and the current market conditions. Work with local agents that can help you understand local conditions.
- If you don’t do your research, you could end up overpaying for a property or investing in a market that’s not profitable.
- Pitfall #2: Omonile
- Beware of land grabbers – these unscrupulous characters will try and claim land ownership even if you have legally purchased a property.
- Ensure you abide by all local customs and deal with traditional leaders to understand who can legally sell a property.
- Visit the property and verify if there are any unusual activities at the property.
- Pitfall #3: Not having a clear plan.
- Before you invest in any property, it’s important to have a clear plan for what you’re going to do with it.
- Are you going to live in it? Rent it out? Flip it? Decide then take action.
- Having a clear plan will help you make better property decisions and avoid costly mistakes.
- Pitfall #4: Not having enough money.
- Real estate can be a costly investment, so it’s important to make sure you have enough money to cover the purchase cost and or the cost to build a property.
- If you don’t have enough money, you could end up in debt or you may have a partially finished building that can’t generate any revenue.
- Save money, watch the exchange rates, and get the most for your money.
- Pitfall #5: Not getting a proper survey and certificate of occupancy
- Get a survey done of the property you wish to purchase- don’t skip this part.
- You must get a certificate of occupancy (C of O), otherwise, your purchase will not be legally binding.
- Seek advice from a real estate lawyer to ensure you follow all the necessary steps – and also you should register your property with the local government.
Are you ready to invest in real estate in Nigeria?
By avoiding these common pitfalls, you can increase your chances of success when investing in real estate in Nigeria. Do your research, get a professional opinion, have a clear plan, make sure you have enough money, get a lawyer, and be patient. if you follow these tips, you’ll be well on your way to making a wise investment.