Real Estate investment is all about getting a handsome profit by investing correctly. It is a profitable business if you know all the property purchasing or selling aspects. But what if you invest and lose all your money & time without getting anything in return? This happens when you know little about it and make real estate investment mistakes.
Getting the consultation of a trustable real estate agency is what you need, but keeping an eye on the Real Estate Investment mistakes in Nigeria would also be of great help!
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15 Real Estate Investment Mistakes to Avoid in Nigeria
To lower the risk chances for your investment, you must read these 15 Real Estate Investment Mistakes in Nigeria.
1. Self-Confidence & No Consultation
If you are too confident and do not consult an expert or your team members before deciding on an investment, you may fall. Self-confidence is a good thing, but it is a bad thing that you must avoid when it comes to Real Estate Investment. Many experts will help you avoid real estate investment mistakes in Nigeria in the following ways:
- They will coach and advise you on vital things to know and do before investing in real estate
- They will ensure that your Real Estate strategy and understanding of both are good for investment.
You can look at any successful investor globally; they always consult their team experts for their investment. Consulting with a good and reliable realtor is one wise way to go.
2. Taking it extra easy
Unlike other businesses, you have to invest a lot of money in Real Estate. However, if you succeed in this task, you can profit in triple folds. Conversely, if you make a mistake, it will give you a big shock along with the loss of money. In short, Real Estate investment is most beneficial, but you must not take it extra easy. Pay proper heed to each and everything. Moreover, consult a trustworthy real estate agency for your help. Click here to consult with one of the dedicated realtors here at Hamborg Properties.
3. Ignoring risk factors
Discussing Nigeria, the first and foremost thing to understand is that it became the most populated country in Africa. Due to the increasing population, the land distribution for Real Estate investment purposes got disturbed.
Most of the real estate investment risks are include:
- Neighborhood problems
- Interest rates
- Local market strategies
- Economic indicators
4. Starting Without Real Estate Investment Plan
Planning before the action is just like thinking before speaking. It is a universal act that pre-plan works as a road map to reach your destination. If your goal is to do something big, you should plan it.
If you are going to do something without any plan, you may forget to consider the real estate investment risk factors, but if you design a road map, you will feel those problems, and this plan will consist of an alternate for it. So, you can’t neglect the importance of an investment plan for Real Estate purposes.
5. A plan without any backup
A good plan always keeps a backup, the second way towards your journey, and never lets you skip the critical steps. It will secure your business by predicting the risk factors. However, without a backup, your investment is at risk.
6. Partnership faults
Partnership faults are often considered the top real estate investment mistake in Nigeria. If you want to make a real estate investment with your partners, choose the best partners. You must know that who are they? What do they want, and either are they trustable or not? What are their goals and perspective? Otherwise, don’t go for investment on a partnership basis.
7. False estimation
If you are going to invest without estimation or with a false assessment, you may fall. A true investor’s mind always keeps track of costs and perfectly estimates building expenses and property turnover. Consult an agency for accurate estimation to avoid real estate investment mistakes in Nigeria.
8. Failure to judge the location
Real Estate investment in Nigeria is quite tricky. If you are going to invest, you have to observe the location. Following location is about watching the land parameters and the environmental parameters.
For example, you must acknowledge the facts like security and cult attacks. Whether you want to buy property to live there or sell in the long-term, these conditions will make a difference because the rate of such property also gets low.
9. Purchasing in the dry season
It’s not bad to buy property in the dry season but you must be aware of the weather conditions and condition of the property during rainy season. Otherwise, you will get into trouble after investment. For example, if you are purchasing land in non-rainy weather, you may face a flood in the rainy season that will affect its core values.
10. Urgent sale trap
It is one of the biggest real estate investment mistakes in Nigeria that people will make. Some clever Real Estate investors add a tag with their defective property as “property is available at a low price due to an emergency.” Don’t be trapped; it may be a trick to trap you into buying it.
11. Buying a property due to its low cost
There is a bargaining rule; you must recognize the value of a thing, not consider its price. It is a familiar concept that it must have some default if you are getting anything at the lowest than its original cost. But most of us ignore this reality when we hear about property at the lowest price because they think property can never give you a loss. You should investigate a property selling at a ridiculously lower price that its actual value.
12. Ignoring legal documentation
One of Nigeria’s primary real estate investment mistakes is the possibility of being trapped in the clutches of fraud. Because sometimes people can try to sell a property which does not belong to them. The main reason behind being trapped in this fraud is not checking the legal documentation before paying for the property.
13. Purchasing without any research
Sometimes, people get into quick and emotional purchasing. You must never do this in case of property matters. Research every aspect about the specified place, including the actual owner, the reason for selling, and other legal issues. If you want to purchase a house, check its material and other relevant things.
14. Inability to choose a good developer
If you fail to choose a good developer for your Real Estate Investment, you are most likely to face the biggest down. Developing is an important stage in real estate building and investment when making buildings for selling purposes.
A wrong developer will use low-quality material, which will affect your property in the long run. The building may collapse, and you will leave with nothing but a significant loss.
15. Poor management
Without proper management, the chances of ruining your investment in the Real Estate market increases. Management is the crucial point of any business and investment. If you think of yourself enough to manage all the assets, then it’s great. Otherwise, go for the real estate management agencies in Nigeria.
Now, you are well aware of the most common real estate investment mistakes in Nigeria. While you can’t become an expert in a day, the real solution is to hire a reputable real estate agency services to ensure you get great benefits from your property. Now, what are you waiting for? Try the services of Hamborg Properties, and you won’t regret your decision. Click here to get a free real estate consultation session with one of our dedicated realtors.