How to Buy Property Very Cheap Using Offplan Strategy By Dennis Isong
Rising building material costs, Naira depreciation, and a low Return on Investment (ROI) are some of the factors influencing the high cost of a new home in Nigeria. Because of these unfavorable conditions, the real estate market has become expensive and unappealing to most investors.
However, the introduction of the offplan buying strategy has ushered in a low-cost payment option in which developers sell off their apartments to real estate investors before they are finished. It is most common in major cities such as Lagos, Abuja, Ibadan, and Port Harcourt, where there are dozens of commercial and residential apartments.This investment plan has some appealing features, but what exactly is it all about, and are there any risks involved? If so, how does one go about doing so? This post will go over these and other important aspects of the offplan strategy.
WHAT IS OFFPLAN INVESTMENT? Offplan investment, also known as off-plan buying, occurs when a developer sells a house while it is still under construction for a variety of reasons ranging from finance to location. This purchasing strategy is typically initiated when the building is diagrammatically represented on paper for review and analysis. If an investor sees the plan and likes the nature of the investment, the developer will then give in to the option of selling the property.
Unfinished homes, like other unfinished projects, have varying finishing levels, which affects their prices. Individuals who purchase a home through this channel early on will typically pay less than those who do not. In short, this investment strategy primarily allows investors to direct when and how the project proceeds, while also protecting against high costs.
THE BENEFITS OF THE OFFPLAN INVESTMENT The sole reason why investors use the offplan buying strategy is to save money. It is, without a doubt, the cheapest way to buy a house, but it comes at the expense of the investor’s convenience and risk. When an agreement is reached between the property owner and the prospective homeowner, the involved individual will be denied the right to move into the house immediately, which can be disheartening at times. They are also more vulnerable due to the uncertainty surrounding the home’s completion date.Given the aforementioned factors, the home will be sold at a low price because both parties stand to benefit equally. Furthermore, this purchasing method allows investors to choose the type of housing materials to be used, such as tiles, kitchen design, bathroom layout, interior structures, and appliances, among other things.
PROFITING FROM AN OFFPLAN INVESTMENT STRATEGY The profitability of an offplan purchase method is enormous, and this attracts investors. There are two ways to accomplish this: the Buy & Hold method and the installment method.
Buyers who use the buy and hold method primarily profit from bonuses earned after purchasing and holding the home for a set period of time. Property experts recommend this method because it is less risky and provides guaranteed earnings. Because of the rapid growth of real estate in these areas, it is ideal in states such as Lagos and the FCT. The simple truth is that using the buy and hold strategy can save a home buyer up to 50% off the cost.
The instalment method, on the other hand, allows prospective home buyers to purchase homes in installments. First, the prospective buyer must deposit a sum of money known as the down payment. Additional payments are made as the project reaches certain milestones, depending on the terms and conditions of the agreement. To better understand this, consider the various stages of offplan investment.
STAGES OF OFFPLAN INVESTMENT There are different offplan prices for each of its four phases. The following are the various stages of the offplan investment:
PHASE ONE
This is the time when the developer and the rest of the project team have yet to begin work. The construction site has not yet been accessed during this stage, which is the most recent. Investors who purchase the house at this time stand to save between 60 and 80 percent off the asking price. In addition, the buyer determines the project’s direction and collaborates with the engineers.
PHASE TWO
The second phase begins after the foundation has been laid and the laying of blocks has begun. Here, the project is still in its early stages, as the developer has not yet invested significantly in it. At this point, the buyer will have purchased the home and may have received a 45 percent – 60 percent discount. Nonetheless, because the foundation has already been laid, the buyer will not be able to dictate how the plan will proceed.
PHASE THREE
The third stage occurs when the home’s finishing is nearly complete. During this stage, developers attempt to deck, make arrangements for doors and windows, furnish the toilet and rooms, and so on. Buying a house at this stage will be more expensive, but it will still be a good investment. The buyer has a good chance of earning a 25 percent – 45 percent discount, and the quality of fittings, household appliances, and other home accessories is also determined.
PHASE FOUR
The final stage is when the house is finished. It is still being sold as an offplan investment at this time, but the price will be high. In this case, the buyer may not receive a discount of up to 5%.
Buyers are advised to follow the process with due diligence, regardless of whether it is the final stage. There are some fees involved in this process, including the reservation fee, which is usually compulsory. However, because of the dubious nature of human beings, it is best for homebuyers to hire their respective lawyers for proper legal documentation. When the buyer-to-seller agreement is successful, the keys are handed over to the homebuyer, and the transaction is completed.
BOTTOM LINE The offplan property investment method is a safe, profitable, and cost-effective way to buy a home. In contrast to the traditional one-time off purchasing strategy, this strategy can save up to 70% off and generate a return on investment of more than 100%. It is a smart and innovative way to invest in the real estate sector.
My Name is Dennis Isong and I am a Real Estate Professional. For Reading this article to this point, I have a GIFT for YOU. DOWNLOAD FOR FREE MY NEW BOOK TITLED:Bamboozled By Some Real Estate Companies “How Some Real Estate Companies Trick You Into Buying Low-Value and Over-Priced Estate And How You Can Flip The Table in Your Favour & Enjoy Risk Free Maximum Returns Anytime,Any day”
The information in this book will help you to pick the right kind of property and nobody can trick you to buy what you do not want. This book is very concise, it was done deliberately so you can pick it up and finish reading in few minutes.
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The high cost of housing has become a source of concern for most real estate investors. This scenario, combined with the rising cost of building materials, has pushed many home buyers to look for a cheaper alternative to acquire homes at a discounted rate.
This low-cost property acquisition option is available in pre-launch, launching or introduction, and post-launch prices. These prices are the result of a home’s various discount variations as it is completed in stages.
Essentially, purchasing a home early on is less expensive than doing so later on, when the price is bound to rise.
Ways to Spot Home Discounts
As a real estate professional I know the process of looking for a home to buy is typically difficult, and most property investors are unable to execute this house haunting flawlessly.
But some property investment companies, both public and private, do advertise their home-for-sale products in newspapers, magazines, and publications.
Furthermore, real estate online sites are another way to find good deals on property in Nigeria. In rare cases, you may have the opportunity to meet the developer while the home is being built. A deal can be finalized at this point, but you must act quickly because the longer you wait, the higher the price becomes.One of the easy way is to connect to a realtor because some of these realtors usually get first class information from developers before the public know
Pre-launch and Early Bid
There is no better time to get the best deal on a home than during its pre-launch phase. During this early stage, homebuyers typically receive a 15% to 25% discount, which may be higher or lower depending on the scope and cost of the house project.
However, available slots during this time are limited, and it is always a time for property companies to assess the general public’s reaction to the project.
In addition, when a homebuyer expresses an interest in purchasing a home during this stage, the real estate company rewards the person for taking a risk by lowering the building’s purchase price.
This is one of the primary reasons why home prices are currently appealing. All of this is done to compensate customers who have different reasons for purchasing the home. One of the reasons could be that the buyer is in the property marketing business, wants to buy them as resident apartments, or wants to lease them. Following the goodwill customers, company begins to generate cash flow through bookings, reservations, and deals.
Launching or Introduction Phase
This is the stage at which the developer sells the house to a prospective buyer at a formal event. At this point, the brokers, who act as middlemen in the marketing chain, make the necessary arrangements and are tasked with ensuring that an agreement is reached between the company and the buyer. Also during this stage, most real estate agencies offer discounts ranging from 10% to 17%; however, for smaller projects, the home discount may reach 20%.
This is an important phase because it marks the time when the terms and conditions of the home are agreed upon. Legal actions are also carried out in accordance with the law, as both the company and the client will sign the contract papers in the presence of their respective legal representatives. Once everything is in order, both the homebuyer and the property agency can set a date for the building’s official transfer of ownership. Meanwhile, because the house is not yet finished at this point, there is some execution risk. If things go wrong, the homebuyer will be refunded in full or depending on the agreement, which is when the role of a legal practitioner comes into play; but this is a rare occurrence. Nonetheless, demand is targeted at this point, and homebuyers are rewarded with discounts for their time, patience, and risk.
Post-Launch Phase
This is the stage at which the developer completes the home project and presents it in marketable ready-made form. During the post-launch phase, the house is open to the public and the price is set.
This is due to the fact that the home has been completed and is well furnished, so the risk involved in this stage is minimal. Regardless, legal counsel is involved because there are instances where the real estate agency may wish to take advantage of the buyer.
This is also the time when the property will be advertised in newspapers and on television for marketing purposes.
Risk Analysis
Risk is an inherent component of all businesses, including real estate. Early investments in real estate are more risky than later ones, and they are also heavily discounted.
When an investor takes a risk by placing an early bid on a home project during its pre-launch phase, he or she will almost certainly be rewarded with a discount. Many homebuyers are hesitant to purchase a home at this early stage due to concerns about some unfavorable factors. Those who can muster the courage to invest in such circumstances are the prepared risk-takers.
However, as a project progresses, the risk involved decreases. Buyers are less risk-averse at this stage because the sole purpose of the house-building project will be revealed to the general public.
In fact, property experts advise homebuyers to seek the advice and services of a professional real estate advisor before purchasing a home during its pre-launch phase. This is done for evaluation purposes, and it also protects investors from being duped. Nonetheless, adhering to the proper legal and formal procedures will ensure that risks are minimized.
Two important documents used to verify the genuineness of the seller are:
Intimation of Disapproval (IOD) Papers: This contains information about the developer's different approvals by responsible government authorities;
Commencement Certificate (CC): This document authorizes the developer to start work on the home construction project.
Conclusion
Using the pre-launch strategy to purchase a property is a better way to save money on real estate investment. Though it is more risky than buying it ready-made that is why you need a real estate professional to advice.The reasonable discount involved is too tempting and enticing for most real estate businessmen to resist. Furthermore, property investors who use this home buying method stand a good chance of saving up to 25% of their investment. When combined with its growing trend, the real estate sector may undergo a paradigm shift, and this development may continue to thrive into the near future.
My Name is Dennis Isong and I am a Real Estate Professional. For Reading this article to this point, I have a GIFT for YOU. DOWNLOAD FOR FREE MY NEW BOOK TITLED:Bamboozled By Some Real Estate Companies “How Some Real Estate Companies Trick You Into Buying Low-Value and Over-Priced Estate And How You Can Flip The Table in Your Favour & Enjoy Risk Free Maximum Returns Anytime,Any day”
The information in this book will help you to pick the right kind of property and nobody can trick you to buy what you do not want. This book is very concise, it was done deliberately so you can pick it up and finish reading in few minutes.
If you've come across this article, then you're probably planning to own a house, trying to find the best mortgage offer or perhaps you are curious to know the top Five mortgage institution in Nigeria. If you ever fall among any of these categories, then relax, you are in the right place as I have taken my time to research some of the best mortgage Institutions in Nigeria.
Many people are often time faced with the challenges of buying or building a house and because owning a property such as this requires having a huge amount of money which may take a long time to save up, then Mortgage services is put into consideration. Mortgage institutions are primarily known for the provision of real estate loan facilities and collects payments back in installments which typically attract interest. The installment may be done monthly, quarterly or yearly basis depending on the packages and or the Mortgage institution.
So, below are the Top Five Mortgage Institutions in Nigeria with guides on how to acquire their mortgage packages:
1. FBN Mortgages
FBN Mortages formally called Nigeria Building Society (NBS) was established in 1956 and is the oldest Mortagage bank in Nigeria. The institution is dedicated and act as an effective vehicle to offer wide range of real estate and mortagage financing solution to all segments of the Nigeria population. With focus on delivering the best Mortages solutions to typify the dominance of it parent ( First Bank) in the Financial service industry, FBN Mortgages stand out to be among the best Mortages institution in Nigeria. If you're looking for mortgage loan with the best rates in Nigeria, then FBN Mortagage is ideal because they offer quality service and has helped many to acquire their dream homes.
2. Platinum Mortgage Bank LTD
Incorporated with the corporate affairs commission in 1992, PMB Ltd is one of the major primary mortagage finance in Nigeria providing loans and homes ownership services. The bank was once known as Platinum Home Investment and Mortgage Ltd with Headquarters in Lagos, authorized by CBN and the FMB of Nigeria under decree No 24 of 1991 decree No 53 respectively. The institution was recapitalized into a primary mortagage institution with more impressive and Innovative products, services, and indispensable professional management. With over 25yrs of operational history and experience, platinum Mortgage Bank is arguably among the top mortagage institutions in Nigeria hitherto.
3. Abbey Mortagage Bank
Abbey is an accreditated mortagage bank for the National Housing Funding (NHF) on-lending facilities which act as an effective vehicle for offering various Mortages and investment services to individuals and corporate organization. The institution offer services ranging from Popular Savings, Fixed Savings Account,EasySave, Home Account,KidSave, EasySave Plus, Children Savings etc so, If you want a more interesting and satisfying products or services order than mortgaging, you can go for Abbey Mortgage Bank. e.g the kidzSave. The KidzSave is a product with upto 5% returns that enable you secure the future for your children. You can save a minimum of #1000 monthy for your children until they turn 18. The bank is also one of the seven national non- aligned primary mortagage bank, authorized by the CBN and FMBN and therefore are ideal.
4. FirstTrust Mortgage Bank Plc
FirstTrust Mortgage Bank emerge as a result of merger with TrustBond Mortagage Bank PLC in 2019. The merged entities has a long history as far back as 2003. The institution has a strong capital base and assets of over N20billion and are dedicated to serve the financial needs of Nigerians in terms of Mortages loan services. They are one of the best Mortagage institution in Nigeria because they make it possible for people to gain stability through home ownership thereby contributing to the country’s development. FirstTrust Mortgage Bank PLC hope to achieve it's purpose by going "beyond the regular delivery of mortgage and real estate financial services leveraging disruptive technology and our people".
5. Federal Mortgage Bank of Nigeria
Federal Mortagage Bank facilitates the ownership of homes among Nigerians through mortgage financing. The mortgage institution operates as profit oriented bank, and its committed to serve customers throughout Nigeria. The company recently signed a strategic partnership agreement with FHF Nigeria to deepen the provision of affordable housing to customers throughout Nigeria. It may also interest you to know that this mortgage institution has long being in existence and in fact the oldest of them all, it was established during the regime of olusegun obasanjo in 1956 to replaced the Nigeria Building Society. It is regarded as the highest mortgage financing institution in Nigeria and controls and regulates all primary mortgage institutions in the country.The mortgage is ideal because of its exclusive vision of being the most preferred mortgage institution offering affordable access to home ownership.
Why own your own house?
A significant consideration to look at is the COVID19 pandemic which lit the real estate market like rockets. Earlier this year, home prices rose rapidly in comparison to 15 years ago; The boom is expected to continue for the next months atleast. Home can loose value but it doesn't happen often which is why it is considered one of the most long term valuable asset to invest in. Mortgaging can help you build equity over the years; your equity continue to grow as you pay down your mortgage which overtime goes down to the loan rather than the interest.
Buying real estate is a big purchase and requires your time considering options to fit your budget, mortgaging helps you keep your cash reserve. It is always a good idea to have some extra cash for emergency. Lastly, you have much greater privacy; you own the property so you can decide to renovate ( a benefit renters don't enjoy) or even rent it out to earn more money.
Conclusion
"Owning a house is a gateway to Long term and short term success" but this doesn't come without costs and limitations. If you're aiming to own a house before retirement, you're thinking in the right direction and can achieve your dreams mortgaging.
There are many institutions that offer quality loans to acquire houses and other real estate in Nigeria. But the above mentioned, offer affordable Mortages rate and are certified to carry out the practice.
My Name is Dennis Isong and I am a Real Estate Professional. For Reading this article to this point, I have a GIFT for YOU. DOWNLOAD FOR FREE MY NEW BOOK TITLED:Bamboozled By Some Real Estate Companies “How Some Real Estate Companies Trick You Into Buying Low-Value and Over-Priced Estate And How You Can Flip The Table in Your Favour & Enjoy Risk Free Maximum Returns Anytime,Any day”
The information in this book will help you to pick the right kind of property and nobody can trick you to buy what you do not want. This book is very concise, it was done deliberately so you can pick it up and finish reading in few minutes.
Paying more than the actual rent is a real estate scam carried out by some Nigerian property owners.
This usually occurs when you are renewing your lease or moving into a new apartment. In the former situation, an overcharge on the annual cost of an apartment may easily be challenged; but, in the later case, there is a good likelihood that you will continue to pay the inflated rates without discovering the truth. Most landlords rarely return the housing price to its original worth, and once this price is declared normal, the chances of getting it back are small.
Furthermore, while the price of rentals in Nigeria is at the discretion of the landlord, prospective lodgers should exercise caution before entering into any binding arrangement. But how do you tell whether your landlord is overcharging you for rent? What steps can you take to avoid being a victim? These and other pertinent questions are addressed further below.
Factors For Determining an Overcharged House Rent
There are several pointers of overcharged rent and most of them are largely dependent on environmental factors. Spotting homes with high renting costs nowadays is a difficult call but not impossible. Fortunately, you don't need to be a certified real estate professional like Dennis Isong to be able to decode the common signs of this fraudulent scheme. Here are some indicators of overcharged house rent:
Hiked Rent
Most landlords in Nigeria frequently raise the cost of rent for a variety of reasons ranging from finance to area. Once your flat rent has been raised, it is your responsibility to investigate the reason for the increase and decide whether it was worthwhile.
For example, if a building is valued at N40,000 per year and the figures increase the following year as a result of multiple notable upgrades, it is prudent to comply.
However, if the restored apartment fails to meet the expected standard that comes with such a high cost, you should begin negotiating with the building's owner.
You should also meet your co-tenants and learn about their current rent. This will allow you to determine whether or not the rent increase applies exclusively to you. Furthermore, most property owners would consider making a compromise with pleasant tenants, which is where your lifestyle comes into play.
On the other hand, if you're a prospective landlord, it's best to talk to your neighbors about the rental rates in that region. You'll have a clear financial picture before meeting with the landlord to negotiate.
Location of the building
Buildings in economically and commercially important areas are typically more expensive than those in less marketing-relevant locales. This is one of the reasons why apartments in Lagos and other major cities are more expensive than those in less developed areas. Furthermore, Lagos City is home to a large number of both Nigerian and foreign landlords, but the rent they pay is not regulated, making it volatile. These renters choose their desired dwelling location depending on their monthly income, and the higher the rent, the better. As a result, rental prices on the Mainland differ from those on the Island, and vice versa.
So, being overcharged on accommodation in areas that are less economically superior can be avoided provided you have a knowledge of rent trends in that region.
Infrastructural Amenities
The quality of infrastructural amenities offered in a location has an impact on rental prices. Buildings in areas with good road networks, steady energy supply, clean water, standard schools, a robust security setup, and an adequate waste disposal system, among other things, are generally more expensive than those in areas with fewer of these services.
Industrial Relevance When a region attracts a number of manufacturing enterprises, the cost of renting in that area tends to rise. This is due to the fact that the existence of industrial institutions attracts a huge market force to a region. This aspect is mostly driven by people's desire for a better quality of life, and in Nigeria, places that can afford these companies typically have a rental advantage over others that cannot.
Furthermore, living near an industrial region allows you to have easy access to basic amenities while saving money on transportation. If you live in a community with fewer industrial start-ups, it's best to assess the rental before signing an agreement.
Quality of the Apartment Often, the condition of an apartment speaks louder than a formal bargain. Buildings with adequate ventilation, tiled flooring, plenty of space, a modernized bathroom and toilet, a closet, and other apartment facilities are often more expensive. As a result, you should weigh the content of the apartment in advance; this way, you'll know whether it's worth your patronage or not.
Furthermore, the quality of dwellings varies according to geography. It's typical to discover well-decorated flats in thriving towns and cities, which pulls most aesthete people from rural to urban areas. As a result, the prevalence of this movement is a primary cause of overcrowding, which impacts the cost of housing.
Type of Home
There are several types of apartments, and the higher their rents are, the better they are in terms of scope. As a result, renting a one-bedroom apartment is less expensive than renting a two-bedroom, three-bedroom, and so on.
More specifically, self-contained residences are better suited to families than individuals; nonetheless, renters have no restrictions on their options. If you choose to live in a one-bedroom apartment, you should be aware of its rental value; the same goes for other sorts of structures. Even if you are more interested in luxury, make an effort to learn about the costs of renting well-furnished residences. The reason for this is that it is more difficult to identify an overcharge on costly flats than on their more cheap counterparts.
Bottom Line
Knowing when you're being overcharged for rent is a valuable skill to have. Accommodation is already one of an individual's significant expenses, thus the addition of rental fraud to the scenario adds to the financial harm.
Cases of rent overcharges are common in Nigeria's large cities, so if you plan on relocating to an apartment in one of these regions, be mindful of the bargain you negotiate with any lessor. This article explained the various hints to assist you in determining an overcharged rent.
My Name is Dennis Isong and I am a Real Estate Professional.
For Reading this article to this point, I have a GIFT for YOU.
DOWNLOAD FOR FREE MY NEW BOOK TITLED:Bamboozled By Some Real Estate Companies “How Some Real Estate Companies Trick You Into Buying Low-Value and Over-Priced Estate And How You Can Flip The Table in Your Favour & Enjoy Risk Free Maximum Returns Anytime,Any day”
CLICK HERE TO DOWNLOAD HERE IT FOR FREE https://landproperty.ng/free The information in this book will help you to pick the right kind of property and nobody can trick you to buy what you do not want. This book is very concise, it was done deliberately so you can pick it up and finish reading in few minutes.
chinonsoso: You call 7million naira affordable for this country. Nawa o The person wey post the advert obviously cannot afford the piece not land. Oga carry your land for sell for yahoo boys abeg.
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Nigeria, the acclaimed "Giants of Africa," has maintained its position as the country with the most Real Estate investment on the African continent for the past two decades and counting. This achievement is largely attributed to the country's growing population of 200 million people. However, Nigeria, like most African countries, is plagued by numerous economic and political issues, which have had a negative impact on the country's real estate market.
Here are the seven most critical concerns confronting the Nigerian property investment sector.
#Problem 1: Expensive Residences
The ongoing rise in the price of most Nigerian homes is posing a significant challenge to the country's real estate sector. Most Nigerian cities are overpriced, which discourages potential investors. Rivers, Lagos, and Abuja are the most affected cities, all of which are important commercial hubs.
Furthermore, the exorbitant price tag has widened the social divide between different income earners. In short, there are some areas where a middle-income earner, let alone a low-income earner, cannot afford to rent a home.
For example, in Lagos State, certain housing units are occupied by the wealthy and cannot be afforded by low-income earners. When this happens, combined with the country's rising economic woes, people tend to flock to less expensive areas, putting a damper on hopes of a possible drop in rent costs.
#Problem 2: Capital Market Threat The risk in the capital market has increased as a result of coronavirus. The volatility of the equity capital market in this post-pandemic period is one of the reasons for Nigeria’s low returns.
As a result, because the real estate sector is a component of this financial system, most protective investors will reconsider investing in real estate. Moreover, the raising capital for lands, fees, and construction costs will make things more difficult for estate agents.
Farther from the real estate clime, this financial problem will eventually have an impact on the Nigerian economy by limiting the flow of cash in the real estate sector, thereby affecting the country's Gross Domestic Product.
#Problem 3: ESG ESG is an acronym for Environmental, Social and Governance. It is a set standard that is used to evaluate the environmental and climate effects of housing units.
In Nigeria, most apartments are characterised by pollution, prevalence of waste in public areas, lack of trash bins for proper waste disposal, and more. This is not just mostly prevalent in big cities such as Lagos and Abuja but is also common in some rural communities. Furthermore, according to the Global Housing Standard, real estate professionals should be concerned about greenhouse gas emissions. Some real estate practitioners in Nigeria disregard this standard, resulting in widespread environmental and climate change in most areas of the country.
Furthermore, statistics show that Nigeria's ESG indexes grew by an additional 40% in 2020. This increase was primarily influenced by matrices determined by how Nigerians handled waste and how conducive their environment was. Another important factor that contributed to the exponential increase was the high proportion of healthy residents compared to the low rate of medical cases caused by environmental factors.
#Problem 4: Naira Depreciation The rate at which the Naira is depreciating is a major source of concern for all sectors of the Nigerian economy, including real estate. The Nigerian government's failure to subsidize the cost of building materials adds insult to injury, forcing contractors and building engineers to purchase these expensive construction equipment at exorbitant prices.
Nonetheless, housing experts have made several recommendations for the country to become self-sufficient in the manufacturing of building materials. These recommendations have yet to bear fruit, but in the meantime, Nigerian Real Estate Investors will most likely be purchasing construction materials at exorbitant prices, aided by rising naira depreciation.
#Problem 5: Increased Rural-to-Urban Migration One of the issues confronting Nigeria's real estate sector is the increased rate of rural-to-urban migration. The large influx of renters from rural areas to urban areas has had a significant impact on property regulation in the country. As a result of this unchecked mobility, one of the major causes of high home rent is overpopulation.
Despite the fact that rent prices in rural areas are relatively low, people flock to urban areas in search of greener pastures due to a lack of investment opportunities. As a result, most real estate managers and agents capitalize on this flow by raising house rents.
#Problem 6: Ineffective Property Protection Laws Estate laws are generally not properly implemented in Nigeria, which has resulted in many cases where investors have been deprived of the land they legally purchased. This is common in developed areas of the country, such as Lagos, and is primarily orchestrated by a group of land thiefs known as omo-onile. These well-known property scammers have a penchant for dubbing investors with the settlement fee tag. They are also commonly found on construction sites where building projects are in progress, where they either violently or deceitfully extort.
Furthermore, despite the city's law, which guarantees offenders 21 years in prison, omo-onile (general term for land grabbers in Lagos) continues to thrive in certain areas of Lagos State. There have been numerous cases where people's land has been forcibly taken and buildings demolished, rendering the property protection law ineffective. This appears to be deterring a significant number of real estate investors from investing in Nigerian property.
#Problem 7: Poor Building Quality Cases of collapsed buildings in various parts of the country indicate that the construction materials used by some contractors are subpar. In short, some of these building contractors in Nigeria lack the necessary educational credentials and professional experience.
Furthermore, this persistent problem appears to have become a source of concern for the majority of Nigerians, and if allowed to persist, it may succeed in tarnishing the image of the country's real estate sector. As things stand, some buildings in certain industrial areas of the country do not meet construction standards, which is largely due to the incompetence of the responsible building contractors.
Conclusion
The importance of real estate in Nigeria cannot be overstated. It is a major economic driver and has generated wealth for the country. However, despite being Africa's largest sector, it has faced a number of critical challenges over the years. Building collapses, for example, have increased the number of human casualties, instilling fear in the majority of residents. These concerns have made the country's real estate sector's prospects less promising and likely to drive away potential property investors if not corrected.
My Name is Dennis Isong and I am a Real Estate Professional. For Reading this article to this point, I have a GIFT for YOU. DOWNLOAD FOR FREE MY NEW BOOK TITLED:Bamboozled By Some Real Estate Companies “How Some Real Estate Companies Trick You Into Buying Low-Value and Over-Priced Estate And How You Can Flip The Table in Your Favour & Enjoy Risk Free Maximum Returns Anytime,Any day” CLICK HERE TO DOWNLOAD HERE IT FOR FREE https://landproperty.ng/free The information in this book will help you to pick the right kind of property and nobody can trick you to buy what you do not want. This book is very concise, it was done deliberately so you can pick it up and finish reading in few minutes.
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FEATURES Fitted kitchen cabinets and countertops, refrigerator, cooker, hob and microwave Balconies wherever applicable as per unit plan Wardrobes in the bedroom Fully tiled bathrooms ensuite and guest toilet Shower area Electrical shaver point with mirror in bathroom Water Heater Tall windows Television connection points Ceramic floor tiling
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The perks of homeownership cannot be overstated; all over the world, owning a home undoubtedly is a big achievement. Huge for so many reasons, even though these reasons vary from one individual to the other.
While owning a home marks a critical milestone in the list of achievements of many people, the journey towards becoming a first-time home builder is not entirely a smooth process and can be hectic for the faint-hearted.
If you intend to join the home owner’s leagues by building your first home, it is pertinent to consider the cons, just as the pros of the entire building process. It can only be achieved by having an adept understanding of the downsides, just as the benefits to help you stay on the right track. This is the essence of this guide to help you identify pitfalls you should avoid and optimize the process of building your first home. While setting out to build your first home can be an exhilarating experience, watch out against the biggest mistakes first time home builders make listed below:
1. INADEQUATE BUDGET PLANNING:
Desire is one thing, but the financial resources to help you build your first home are different. Inadequate budget planning is a common mistake many first-time home builders make; this is why you must plan, plan and plan your finances before setting out to build. It is pertinent to consult with a professional home builder to make an extensive budget for you to don't begin a process you won't end up finishing.
It is not uncommon for first-time home builders to set out to build a house without making due consultations only to find out somewhere after the process has begun that the financial resources needed to get the project executed are inadequate.
To do this right, after choosing your building design and finalizing on how you want your desired hoe to look like, make time to consider finance research and planning. Doing this will set you on the right track and veer you off from initiating a project you will not end up finishing. Consulting will not help you plan your resources alone; this process will shed light on processes you can enjoy bargains and even save up funds in the long run. So, carry out detailed financial planning before setting out to build!
A good financial plan for your building process should be detailed and adequate for all your needs from start to finish. An inadequate financial plan will only cause an incomplete project, so make due consultation and get a budget planning that caters to all your needs.
2. POOR SPACE PLANNING: One other common pitfall many first-time home builders fall into is improper space planning.
Building a home that has well-defined spacing for all your needs is something never to overlook. The importance of advanced space planning often is not easily known until the whole building process gets completed, and not having the right space planned out can lead to lots of inconveniences. For example, improper planning for your water resources can leave your home flooded, and you don't want to have a beautiful home with a messy problem.
A good home should reflect advanced thinking that caters to all your needs as a homeowner; regardless of how beautiful any home design you see may be, not every home design is well suited for any location.
To get it right, list your home needs and discuss them with your designer to make adequate preparations to have all your needs catered for in your home design. Chances are this will ignite even better ideas from your designer, and you'll end up with a home you'll love and not regret the cost of engaging a designer to do adequate space planning for your home.
3. NOT GETTING THE RIGHT BUILDER: Not all home builders are the same. There's always the professional edge that separates a proficient home builder from an average one. The worst mistake you can make as a first-time home builder is not choosing a competent home builder for your building project. Who says you can't build a fantastic home even as a first-time home builder.
If you're a first-time home builder, it is pertinent to know that there are different home builders and choose the right one for your project. To build a top-notch home, you should consider pitching your plans through these builders and choose which to execute your project at every phase:
A. PRODUCTION BUILDER A production builder oversees building plans evaluating building plans and options. This specialist will show you a modeled design before executing your project, so you can review the entire setup design and make any corrections and amendments before the actual building process starts. This process helps you visualize what to expect and helps you in budget planning, so you can plan your home-building finances even before starting.
B. CUSTOM-BUILDER A custom builder will help you achieve your dream of building your first-time home in style. A custom builder helps you fine-tune the building designs you have and bring brilliant touches to assist you in building a home that fits your lifestyle, land topography, and budget. Without consulting with a custom-builder, it is easy to set out on a process that may end up before getting your objective.
Other pitfalls that can rear their head up with home builders include not visiting buildings the home- builder you desire to handle your project has done before or evaluating a strong portfolio. A good home builder should have an extensive portfolio to present for review purposes.
It is essential to interview a selection of builders for your project, evaluate their portfolio and even visit a few of their previously handled projects to get the very best builder for your home. Doing this will prevent you from a lot of problems and money, more importantly.
[b]Final Thoughts [/b]Adequate planning and professional consultation will help you avoid many problems many first-time home builders make. Not just planning but following through with the suggestions outlined in this article. You can avoid the three biggest mistakes most first-time home builders make if you consider and follow the guidelines outlined in this guide.
FOR READING TO THIS POINT I HAVE A GIFT FOR YOU I have a SPECIAL GIFT FOR YOU It is my NEW BOOK titled: "Bamboozled By Some Real-estate Companies" This book will save you From Real estate TROUBLE and REGRET The information in this book will help you to pick the RIGHT kind of property and nobody can trick you to buy what you do not want. This book is very concise, it was done deliberately so you can pick it up and finish reading in few minutes. Download HERE FOR FREE https://landproperty.ng/free
A Land under Government Acquisition is a land acquired by the Government for its own specific use and there are plans for these lands in the nearest future depending on what the Government intends to do with the land.
To live and work in a foreign country comes with its challenges.
However, no one wants to lose its hard-earned resources or income due to wrong investment. Meanwhile, it’s without a doubt that 55% of Nigerians living abroad definitely love to invest in Nigeria but sometimes they go about it the wrong way and make serious mistakes.
Just like a story (real-life story) that was published on Nairaland Forum about a US-based Nigerian man who invested a huge sum of N787 Million in a landed property at Sangotedo in Lagos state. And was presented with a fake document for the land, imagine losing this amount of money to fraudsters.
Meanwhile, this kind of mistake can easily be avoidable once the investor is well equipped with the right information and knowledge.
Thus, these are the mistakes I want us to discuss in this article. Knowing and being able to avoid these mistakes can help save one from lots of headaches and stress trying to recover your lost fund.
1.PROCRASTINATION
This has been one of the huge sets back many diasporas have. Most state, “I’ll invest when I’m back in Nigeria”.
But they don’t remember that real estate doesn’t wait for anyone. For instance, in this present developing area of Lagos state that’s Ibeju Lekki, the selling price of the most landed property has been appreciated by 20% - 30% for the past 5 years and still appreciating because of the massive ongoing development in the area.
For example, we have the Dangote Refinery being set-up in that location which is intended to be Africa’s biggest asset with an estimated value of $9bn. Also, there’s a seaport, Lekki international airport, and Lekki free trade zone being set-up by the Lagos state government. Because of these developments and other potentials, the place is now referred to as the new Lagos and land appreciation rate is increasing daily.
With the rate property appreciates especially in developing or developed areas, a minute delay can cause one to be purchasing a property at a higher cost than it should be. For instance, as of 2016 a plot at Amen Estate Phase 2 was selling for N10m.
Then, in 2018 it was sold for N12m but right now it’s selling for N25m. So, if there’s any diaspora who invested in Amen Estate Phase 2 in 2016 when it was sold for N10m, rather than wait anytime he/she comes to Nigeria to invest in the property. Then, the person must have saved the additional cost over these years, and the property has also appreciated by 150%.
Hence, knowing the right time to invest in a property and bury that procrastination idea is a great deal.
2.INVESTING OUT OF EMOTION:
It’s difficult not to let your heart rule your head when purchasing an investment property. Don’t be surprise that I raised this point, we have a lot of people especially those living outside Nigeria make the same mistake over and over again of investing out of emotion not because they need to invest in that property. Most diaspora may invest in a property they don’t know anything about or didn’t do their background research on. But simply invested because either a friend or family introduce them to it, or out of fear of missing out.
This can be a costly mistake, even though there’s nothing wrong with investing in a property being introduced to you by a friend or family. However, ensure to do thorough research on the product and make sure it worth spending on.
Don’t allow to be pushed by that “gut feel” it mostly occurs out of anxiety or fear. Take your time (but don’t procrastinate) to research the property you want to invest in, seek expert advice and make an unbiased but right decision.
3.NO IN-DEPTH KNOWLEDGE
Before investing in any property, it’s best to have first-class information about the property. This helps one in making the right decision whether to invest in it or not.
Most Nigerians living abroad hardly know much about the property. For instance, the specific location and even the surrounding vicinity can help determine if its best for the purpose of your investment.
The property valuation, potentials, land documents/title are other option to consider.
4. NO THOROUGH BACKGROUND RESEARCH
It’s very necessary that you undergo thorough research on the property investment before making any move. Most diasporas hardly partakes in any thorough background rather 65% of them depend on the research carried out by their family or friends without involving any professional services to help investigate the property they want to invest in.
And this can be hazardous if care is not taken, you might be purchasing a government property without any authorization to build on it or buying land already bought by someone else.
5.RELATIVE OR FRIENDS CONCLUDING ON THE PROPERTY
It’s fine to have your relative or friends inspect the property to invest. But, don’t allow them to make the final conclusion for you.
This is because they may be ruining your property acquisition procedure if not handled with care. Also, most don’t have a personal interest in it and so may not make the right decision when it comes to the choice of investment. Some even make the mistake of making payment through their relatives
WHAT THEN IS THE BEST WAY TO GO ABOUT IT?
Here’s the best great strategy for Nigerian’s living abroad to buy their property without physical inspection;
Employ the services of a professional like a lawyer or well-trusted Realtor to inspect the place with your representative at a convenient time.
Then, instruct them to go live (I mean a live video record) so to enable you to inspect the property with them. Also, that of the neighborhood where the property is located.
Next, is to choose the desired plot that’s where you’ll be allocated together via the live video.
Then, proceed with the land document but make sure that the land/property document has been duly verified and authorized by the government.
This can be carried out by your professional lawyer, not just your family or friend. Then, you can proceed with the payment to the official payment channel of the Real Estate Company.
It’s not advisable to make payment through your relative except on the ground of total trust.
My Name is Dennis Isong and I am a Real Estate Professional.
For Reading this article to this point, I have a GIFT for YOU. DOWNLOAD FOR FREE MY NEW BOOK TITLED:Bamboozled By Some Real Estate Companies “How Some Real Estate Companies Trick You Into Buying Low-Value and Over-Priced Estate And How You Can Flip The Table in Your Favour & Enjoy Risk Free Maximum Returns Anytime,Any day”
CLICK HERE TO DOWNLOAD HERE IT FOR FREE https://landproperty.ng/free The information in this book will help you to pick the right kind of property and nobody can trick you to buy what you do not want.
This book is very concise, it was done deliberately so you can pick it up and finish reading in few minutes.
How to Invest in Real Estate In Nigeria With Little Money
In any investment, money is engaged to bring about more money. For some capital-intensive investments like the real estate venture, much money is usually needed right from the start.
We all know it’s almost impossible to start a real estate business with little finances, however, it is not entirely impossible. Property investment is a venture that takes years to bring returns, and in most cases, considerable returns are only obtained after making multiple investments. Still, the money to make these investments is seldomly available for many.
There are strategies carried out by seasoned property investors while funding their investments and these help them put in only a little amount of money. These investors have identified and developed the knack for utilizing other people’s money to their gain.
For anyone who hopes to make consistent earnings through real estate without the challenge of having to acquire huge capital, the below strategies are indispensable.
Forming a Partnership
Because real estates are usually expensive and most buyers may not have enough capital to purchase them, a partnership could be formed between two interested buyers to offset the cost of the property.
This ensures the real property is purchased with considerably little money coming from each of the partners. Despite this advantage, the buyers need a robust partnership agreement where, among other details, the equity of each partner is clearly outlined to avoid future problems.
Leasing
Investing in real properties necessarily doesn’t require one to foremostly purchase a building. You can do it with only a lease.
Leasing is an approach to real estate ownership where the owner of the property rents it out for a certain amount of money.
The lessee, if permitted, can further lease out the property or units of it. Ordinarily, leases are usually lowly priced and require no heavy sum of money during upfront negotiations.
Some property owners allow an outright purchase of leased property. In this option, an agreement with the owner of the property is made for a higher rental fee to be paid periodically, usually a month. The excess amount paid after the lease fee has been isolated away is part of the payment for the property. In this way, you are investing in the property but with little amounts of money.
Special Government Schemes like the National Housing Fund (NHF)
This is a government pioneered scheme which enables various working-class citizens to own their home. Clearly defined as a loan scheme for the purchase, renovation, or building of residential apartments, it is of immense benefit to individuals unable to accumulate monthly income to build a home.
Obtaining the NHF loan enables property investors to build homes with little monthly contributions. These homes could be leased and the money derived from such used in settling off the loan amount.
The National Housing Fund has a set of requirements and guidelines for citizens hoping to obtain a loan. One of such is that the citizen must be above the age of 21 with proof of employment. Before the request for a loan, the individual must contribute for at least six months to the NHF.
The maximum obtainable amount is N15 million at an interest rate of 6%. This is to be repaid within 30 years from the date of obtainment. This loan is directly managed by the Federal Mortgage Bank of Nigeria (FMBN) although an application for it could also be through a recognized primary mortgage institution.
FMBN’s Rent-to-Own Scheme
Another means through which a worker can own a property in the country with little money is through the rent-to-own scheme of the Federal Mortgage Bank of Nigeria.
This scheme is similar to the national housing scheme, but the difference is that workers do not obtain this loan facility for building a home, instead, Rather, rent the property built by FMBN and subsequently purchase it outrightly.
Workers are entitled to properties whose value is limited to N15 million with prices to be redeemed within 30 years. A 9% interest rate is placed on this loan and interested workers are assured of quality cost-effective buildings.
Real Estate Investment Trusts
Owning a share in a real estate investment trust is another way to invest in property without so much money. Like your share of a company’s stock, you cannot get your money out unless it is traded to another person or the property is sold off.
In Nigeria, various property companies are operating this investment model. They build offices, and residential buildings with these trusts, and then lease the building out. The profit garnered from the rent is shared out among shareholders.
One benefit of investing in real estate through investment trusts is the absence of managerial duty.
All administrative tasks are done by the company and for this, an administrative fee is gleaned from profits made with the property. That wouldn’t matter much considering that just a bit of your money is under the trust.
Obtaining Home Equity Loans
This method of investing in real estate requires you to leverage the equity of your earlier acquired property to obtain a loan for yet another property.
The property might be a home or a leased apartment. To obtain a good amount of equity loan, the value of the property serving as collateral must be great.
Banks and several microfinance institutions do offer this kind of loan package. The interest rate might be inconsiderate, however, you wouldn’t have to spend much of your fund for the property to be obtained.
Real estate investment is a profitable venture of purchasing, owning, managing, and selling or leasing real property. It offers steady cash flow but necessarily demands time and intensive input of finances.
Most often than not, these finances are from the personal keeps of investors, and for individuals with no stacks of finance, the likelihood of real estate investment might look bleak.
By applying the above real estate investment strategies, having an investment or several investments in real properties is possible with little money.
Like any kind of investment, it is recommended that decisions made should be roundly researched beforehand.
My Name is Dennis Isong and I am a Real Estate Professional. For Reading this article to this point, I have a GIFT for YOU. DOWNLOAD FOR FREE MY NEW BOOK TITLED:Bamboozled By Some Real Estate Companies “How Some Real Estate Companies Trick You Into Buying Low-Value and Over-Priced Estate And How You Can Flip The Table in Your Favour & Enjoy Risk Free Maximum Returns Anytime,Any day”
CLICK HERE TO DOWNLOAD HERE IT FOR FREE https://landproperty.ng/free The information in this book will help you to pick the right kind of property and nobody can trick you to buy what you do not want. This book is very concise, it was done deliberately so you can pick it up and finish reading in few minutes.
In any investment, money is engaged to bring about more money. For some capital-intensive investments like the real estate venture, much money is usually needed right from the start. We all know it’s almost impossible to start a real estate business with little finances, however, it is not entirely impossible. Property investment is a venture that takes years to bring returns, and in most cases, considerable returns are only obtained after making multiple investments. Still, the money to make these investments is seldomly available for many.
There are strategies carried out by seasoned property investors while funding their investments and these help them put in only a little amount of money. These investors have identified and developed the knack for utilizing other people’s money to their gain.
For anyone who hopes to make consistent earnings through real estate without the challenge of having to acquire huge capital, the below strategies are indispensable.
Forming a Partnership
Because real estates are usually expensive and most buyers may not have enough capital to purchase them, a partnership could be formed between two interested buyers to offset the cost of the property. This ensures the real property is purchased with considerably little money coming from each of the partners. Despite this advantage, the buyers need a robust partnership agreement where, among other details, the equity of each partner is clearly outlined to avoid future problems.
Leasing
Investing in real properties necessarily doesn’t require one to foremostly purchase a building. You can do it with only a lease.
Leasing is an approach to real estate ownership where the owner of the property rents it out for a certain amount of money. The lessee, if permitted, can further lease out the property or units of it. Ordinarily, leases are usually lowly priced and require no heavy sum of money during upfront negotiations.
Some property owners allow an outright purchase of leased property. In this option, an agreement with the owner of the property is made for a higher rental fee to be paid periodically, usually a month. The excess amount paid after the lease fee has been isolated away is part of the payment for the property. In this way, you are investing in the property but with little amounts of money.
Special Government Schemes like the National Housing Fund (NHF)
This is a government pioneered scheme which enables various working-class citizens to own their home. Clearly defined as a loan scheme for the purchase, renovation, or building of residential apartments, it is of immense benefit to individuals unable to accumulate monthly income to build a home.
Obtaining the NHF loan enables property investors to build homes with little monthly contributions. These homes could be leased and the money derived from such used in settling off the loan amount.
The National Housing Fund has a set of requirements and guidelines for citizens hoping to obtain a loan. One of such is that the citizen must be above the age of 21 with proof of employment. Before the request for a loan, the individual must contribute for at least six months to the NHF. The maximum obtainable amount is N15 million at an interest rate of 6%. This is to be repaid within 30 years from the date of obtainment. This loan is directly managed by the Federal Mortgage Bank of Nigeria (FMBN) although an application for it could also be through a recognized primary mortgage institution.
FMBN’s Rent-to-Own Scheme
Another means through which a worker can own a property in the country with little money is through the rent-to-own scheme of the Federal Mortgage Bank of Nigeria. This scheme is similar to the national housing scheme, but the difference is that workers do not obtain this loan facility for building a home, instead, Rather, rent the property built by FMBN and subsequently purchase it outrightly.
Workers are entitled to properties whose value is limited to N15 million with prices to be redeemed within 30 years. A 9% interest rate is placed on this loan and interested workers are assured of quality cost-effective buildings.
Real Estate Investment Trusts
Owning a share in a real estate investment trust is another way to invest in property without so much money. Like your share of a company’s stock, you cannot get your money out unless it is traded to another person or the property is sold off. In Nigeria, various property companies are operating this investment model. They build offices, and residential buildings with these trusts, and then lease the building out. The profit garnered from the rent is shared out among shareholders.
One benefit of investing in real estate through investment trusts is the absence of managerial duty. All administrative tasks are done by the company and for this, an administrative fee is gleaned from profits made with the property. That wouldn’t matter much considering that just a bit of your money is under the trust.
Obtaining Home Equity Loans
This method of investing in real estate requires you to leverage the equity of your earlier acquired property to obtain a loan for yet another property. The property might be a home or a leased apartment. To obtain a good amount of equity loan, the value of the property serving as collateral must be great. Banks and several microfinance institutions do offer this kind of loan package. The interest rate might be inconsiderate, however, you wouldn’t have to spend much of your fund for the property to be obtained.
Real estate investment is a profitable venture of purchasing, owning, managing, and selling or leasing real property. It offers steady cash flow but necessarily demands time and intensive input of finances. Most often than not, these finances are from the personal keeps of investors, and for individuals with no stacks of finance, the likelihood of real estate investment might look bleak. By applying the above real estate investment strategies, having an investment or several investments in real properties is possible with little money.
Like any kind of investment, it is recommended that decisions made should be roundly researched beforehand.
My Name is Dennis Isong and I am a Real Estate Professional. For Reading this article to this point, I have a GIFT for YOU. DOWNLOAD FOR FREE MY NEW BOOK TITLED:Bamboozled By Some Real Estate Companies “How Some Real Estate Companies Trick You Into Buying Low-Value and Over-Priced Estate And How You Can Flip The Table in Your Favour & Enjoy Risk Free Maximum Returns Anytime,Any day” CLICK HERE TO DOWNLOAD HERE IT FOR FREE https://landproperty.ng/free The information in this book will help you to pick the right kind of property and nobody can trick you to buy what you do not want. This book is very concise, it was done deliberately so you can pick it up and finish reading in few minutes.
The idea behind the Aces is to build an environment where people can own homes for residential purposes, for holiday experiences or passive rental income for as long as you choose.
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FEATURES: -24/7 power supply -Well paved roads -Covered drainages -Treated water -Swimming Pool -Well equipped GYM -Outdoor Bar -Lawn Tennis Court -Indoor Game House -Sit-Out area -24/7 Security -CCTV surveillance cameras -Solar street lights -Mini-mart and a Pharmacy
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Properties › How To Buy Property Very Cheap Using Offplan Strategy By Dennis Isong by cbi24(op): 12:08am On Oct 02, 2021
