Irrespective of your reason of investing in real estate, there are some certain factors you need to consider
before purchasing any property as these factors contributes to you achieving your investment goals.
4. Future Prospect
When considering buying land or properties in Nigeria, number one factor ones need to consider is location. Location plays a crucial role in where you can buy land in Nigeria. Your preferred location would influence your budget.
For instance, its more expensive to buy a land in Ikoyi or Victoria Island in Lagos state when compare to buying a land within Ajah/Ibeju Lekki axis reason being that, Ikoyi or Victoria Island are more commercially advanced and its has reached the peak of its appreciation rate.
Once you understand your real estate investment goals and objectives, then choosing the right location for your property investment won’t be a difficult task. Right now in Nigeria, one of the best location that is fast becoming a commercial and residential real estate investment hub is the Ajah-Ibeju Lekki axis as a result of government present and infrastructures that contributes to capital appreciation of landed properties located within.
Some locations have good and better road networks which is something you should also put into consideration.
Another very important factors to consider when buying land or properties is the level of infrastructures located within the location you are investing. Reason being that they form part of the basic things that contributes to capital appreciation of your investment. This is one of the major reason why seasoned real estate investors take trends around infrastructure very seriously.
Infrastructures like schools, shopping malls, factories, office complex, Airport, Seaport etc. in a particular location will drive up the value of properties located within while absence of such infrastructures will drag the value down.
Just like the example sited above using Ikoyi as a reference, what makes prices of land very expenses in this region is because its commercially advanced unlike Ajah-Ibeju Lekki that is just coming up infrastructure wise. Investment in Ikoyi has reached its peaks as returns on investment is quite low but for Ajah-Ibeju Lekki, returns on investment can be very high as it is still in its development stage couple with the fact that there is enough government and private sector present.
When consider buying real estate, be on the lookout for neighborhood that have shown a potential for growth in terms of infrastructural development.
Landed properties located in neighbourhoods with good and accessible road networks records good returns on investment over the cause of time while neighbourhoods that are difficult or stressful to access will tend to lose value fast. For instance, appreciation rate on property located within the Ikorodu axis of Lagos state is not same as property located in Lekki-Ajah axis because the former lacks ease of access and interconnection to major roads in the state while the later has ease of access.
Good access road and easy navigation to major infrastructures within your preferred choice location is a major deal breaker. Before you buy any landed properties, ensure that it is easily accessible by an efficient means of transportation.
If your reason of buying property is for investment purpose, then before you commit your money into any land or property make sure the location you are about to invest in have future prospects. A location is said to have a future prospect when the government has plans to upgrade infrastructures and amenities that would contributes to huge returns on investment just like what is happening in Ibeju Lekki.
When considering buying real estate, don’t forget to take a good look at the kind of people in that neighbourhoods of your choice. One good way to get to know the kind of people living therein is to visit some of the popular hangout spots within the vicinity.
Don’t hesitate to carry out your background check to know who your potential neighbours are. Remember you are a product of your environment.