Today, like all days in the real estate investment world, key players and new entrants are looking out for landed properties to invest in.
However, there is a dearth of knowledge in the real estate investment space.
To bridge the knowledge gap, this guide serves robust information to inform all land bankers investment decisions in the Nigerian real estate industry.
To begin with, what does landed property mean?
A landed property is a real estate property—a land, a house or a building project—that can generate income for its owner.
Diving into the guide, an investor must first:
Set His/Her budget
Making a landed property purchase requires utmost financial clarity and direction.
Going in with a budget that is risk and profit effective commits one appropriately to the purchase.
This helps to regulate capital loss and manage finances for each and every investment one make in the scene.
Think Location, Location and Location!
Location is a primary factor to consider while looking to make a real estate investment. This is because the environment a landed property is situated at influences the standard of its quality and value in the market.
A good instance is a land in Epe, which is more valuable compared to land in other states aside from Lagos, as the rate of development settling in Epe is dynamic, rapid and consistent.
Do Due Diligence
Due diligence is termed ‘due diligence’ for a lot of reasons.
This is because investing in the real estate market, especially in Nigeria, harbors varying players with different motives. This makes conducting thorough due diligence a crucial step to buying landed property in Nigeria.
It is important that one verifies land titles and ownership through reputable sources to ensure he/she is dealing with legitimate sellers. Equally, it is advisable to conduct on-site visits to assess the condition of the land and surrounding areas.
Consider Infrastructures
Basic infrastructures like roads, hospitals, schools, shopping malls, filling stations, etc, are top rated considerations one should allow to inform his/her purchasing decision. These features influence the potential growth of property in any given location.
Any area with developing and urban structures like the ones above is highly recommended for investment, given that the location and other due diligence criteria are met too.
In closing
Investing in real estate in Nigeria can be a lucrative pursuit for investors, especially if an investor leverage the right information to inform his or her buying decisions.
The recommended tips above are some of the surefire ways to effectively invest in landed properties in Nigeria and beyond.
And with appropriate research and due diligence, investors can successfully key into landed property investment in Nigeria and reap tangible return on investments.
Ayorinde Ejioye is the Chief Operating Officer of Gidi Real Estate Investment Limited.
This is comprehensive and well detailed.