The demand for Real-estate in recent years has doubled , almost tripled with Real-estate companies having to be on their toes to constantly meet the supply. With lands and houses for sale in Lekki, Ibeju-Lekki and other parts of the country, it is safe to say that Real-estate investing in Nigeria is at its peak in recent years.
Nedcomoaks, one of the real-estate companies in Lekki, Lagos offering houses for sale in Lekki has recorded helping numerous clients secure high quality and legally proven houses in Lekki over the years,
But as enticing and as beautiful, the prospects of investing in Real-estate are, it is necessary for anyone seeking to invest to be double sure and check out facts on the industry, while also involving real estate agents and Lawyers in their decision making process in order to be sure that at the end of the purchase, they would be enjoying huge value for their money.
Just like any other business or endeavor, buying a house or a land comes with a lot of opportunities but more often it also comes with its own share of risks that has to be managed and taken care of. to effectively maximize the purchasing process so as to avoid low returns or ultimately, loss on the property in view.
These are just some of the warning signs you should take note of when trying to buy a property in Lekki, or extensively anywhere around the world a some of these signs are not geographically bound but are bound to be applicable in major places around the world.
Consider the following warning signals, and when you see any combination of these, maybe it’s time to move on to another property.
1. The profit margins seem skewed
The end-plan of any property investment is the assurance that at the end of the process, there will be profit, simply stated, you want to make money off your investment.
So, if the seller of the property you are trying to buy for investment is insisting on a ridiculously high place relative to the value of the property you want to buy and it has been on the market for quite some time, maybe that is a clue for you to just move on to the next property. You might just be wasting time and resource on a deal that might never come through, wouldn’t it just be wiser to put your energy into trying to secure a deal with more potential?
2. The statistics are not compelling
Real-estate is an Industry that thrives on statistical facts, data and metrics showing relationship amongst different variables in discussion.
So it becomes a warning sign if your seller cannot give you relevant statistical data on the property and other factors that might become relevant when it comes to residing in the house or how much the tenancy could be worth with at least a reasonable amount of precision.
If the seller can’t provide you with statistics and reliable information on rentals, neighbourhood allure, year to year profits, etc., it’s probably not far-fetched to guess that the deal might prove to be one to back-fire at the end of the day.
Never enter a deal where information is veiled or concealed or simply not convincing. This might just be a sure warning sign for you to cut the chase.
3. Bad and infamous neighbourhood
When buying any property for investment, one of the things you want to avoid is buying property in an infamous and underdeveloped neighbourhood as this will ultimately diminish your returns in the long run. The whole idea of buying property for investment is to buy a property in a hot or an up and coming neighbourhood so that in a few years you could make reasonable returns on it. You do not want to invest your money in a poor or declining area as this will only reduce your profit margins.
Once the area is recognised for being unsafe, bad and notorious, the chances of getting clients that would want to pay reasonably well will be reduced leading to a loss of profit.
4. High Maintenance costs
Seeing a picture of a house for sale on Magazines or online is usually quite different from actually going to see the house physically as you will be able to inspect the building and checkout for yourself some of the facilities or cracks and fails in the building that might not have been captured or reported in the picture.
Online, some of these apartments put up for sale might look great, but when you actually go to see the house, you might soon realise that the cost of maintaining or renovating the property might be too high and such might turn out to be a liability and not a quality investment at the end of the day.