Every investor in real estate investments usually have generation of profit in mind before committing his money. I am very sure nobody will like to purchase property to find out after few years that the investment was not good or hard to sell or rent out. Ignorance of how to avoid bad deals has always resulted in losses in real estate business. Sometimes, even the so called experience real estate investors can become victim of scammers. This article reveals the ways you can avoid bad real estate deals. The under listed should be considered before investing in real estate property development:
Good locations:
Location of properties plays a major role in real estate investment as it determines the value of the property now and in the future. Developers understand it better than anyone else.
That is why places like ibeju lekki is the main concentration of Lagosians for now in real estate investment. Same types of properties built in different locations don’t command the same price because of location factor. Accessibility brought about by construction of new road is a key element in value determination. Properties having basic amenities also command high value because of large market.
Avoid properties without good titles
Properties without good titles should be avoided, although they usually come cheaper and sometimes very attractive. About 85% of such properties usually have problems that are difficult to resolve. Avoid such properties without a good title like a plague, but if you must buy or rent such properties get a good lawyer.
Conduct a thorough legal search on the title document
Government Allocation, Certificate of Occupancy, Governors Consent are generally acceptable documents in property investment, but you must make sure that the documents are genuine. It is advisable that you identify properties with good title and conduct search on the documents. A property consultant or a lawyer can help you do that. You should also know the history of the land you want to buy.
Avoid flood areas, regulation lines and water shed areas.
A good real estate investor does not need to be told to avoid government regulation areas and flood areas that could affect the value of their property now and in the future. In Lagos for example there are different areas with different government town planning regulations; no development will take place without a good town planning approval. It is always necessary for property investors to consult the town planning authority at the initial stage to make sure no problems are likely to arise and all the regulations of the location are followed.
A flood area is usually an area that borders a lake, pond or river. If you notice any indication of delta plains, swamps, closeness of canal. River of dam to the property, this will tell you it is a flood area. You definitely want to avoid these areas when considering a piece of investment property. Nobody will want to live or buy property that is close to a canal or river.
Get the necessary approvals from town planning authority
It is very important to seek for approval from the authorities before developing your property as properties developed without approval can lead to demolition of the property after completion.
Use professionals in your construction and avoid fake building materials
The major cause of building collapse is the use of quacks. A normal building team should consist of Estate surveyors, Architects, Builders, Quantity Surveyors, Project Managers, Civil Engineers.
In conclusion, it is important to know that every opportunity that brings money is risky, therefore real estate investment may not be the right business for you if you are nervous.
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