In buying new Property, Real Estate often makes up the largest part of an individual’s assets. It is the most well-known alternative asset class owing to its durability and return prospects. However, the imperfect nature of the property market can make transactions especially purchase an unnerving process.
The increased adoption of technological tools and the rise of credible property companies in the past few years is significantly reforming the housing market in Nigeria. You can research, view, and purchase a property from the comfort of your home within a short timeframe.
Whether you are going through your house-buying process alone or with a property company, we have put together this guide which details the important things to note when stepping onto the property ladder.
1. Financial Capability –
Buying a house is a long-term financial commitment. It takes years of planning, saving, sourcing, and decision-making. Working out your credit score is the first place to start in the home-buying process. Determining what you can afford in realistic figures will lead the path to the types of houses to look out for and mortgage schemes to apply for.
Determine if you can make an outright purchase, how much down payment you can pledge, and how much you can continue to pay for the loan repayment period either monthly, quarterly, or annually.
2. Decide on Off-Plan or On-Plan Property –
Buying a property off-plan means you are buying it in advance of its completion, while on-plan properties are fully set for their occupiers. Both have their pros and cons. While off-plan properties allow buyers to buy at a current price and spread payment across a payment plan, on-plan gives the buyer a physical view of their prospective purchase.
The type of property to go for will depend on your financial standing and level of urgency to the housing need.
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3. Capital Growth –
If you are purchasing a property for investment purposes, then you must consider the capital growth and prospects in the property location. In places like Lagos and Abuja, capital returns are most apparent as real estate prices have witnessed a steady increase in the past few years.
Investors who wish to purchase buy-to-rent properties in Nigeria get to enjoy the benefits of the rising rental rates, especially in cities with an increasing labor force. You can also purchase properties for cheap in emerging neighborhoods ahead of the competitive demand. In real estate investment, the key is to buy and wait, and not wait to buy. Securing a property in an up-and-coming neighborhood can often be a stellar value buy.
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4. State of Property & Neighborhood Infrastructure –
Inspecting your proposed purchase would be the next step after making a decision on how much and on what to buy. To make this process seamless, create a checklist of your wants, needs, and deal breakers to guide you in making the best decision on the right property for you.
5. Verify Property Seller / Developer –
Important features to look out for include: accessibility, security, drainage systems, flooding situation, power, water supply, street lighting, internet connectivity, hospitals, schools, etc.
It is advisable to consult a credible lawyer or trusted real estate professional to conduct due diligence when dealing with property purchases to avoid legal troubles after purchase. They guide you in the verification of the seller/developer and in investigating the property title.
Here’s a list of important housing purchase documents :
– Purchase Receipt
– Building Plan
– Contract of Sale
– Deed of Assignment or Deed of Conveyance
– Certificate of Occupancy (CofO)
– Survey Plan
– Letter of Administration.
Ensure that all documents are duly signed, stamped, and in original copies. Remember to make copies and store them in a safe place. We would advise that you scan and save online as well.
Ready to buy your new home? Send us a message on 0809 784 5065 or visit our website here