Saving money as a way of achieving financial freedom is outdated, the only real investment that is key to creating lasting wealth is real estate. The rules of wealth has long changed as today’s savers of money are actually losers of money.
With this in mind, it is every Nigeria man’s dream to at least own a land most especially in Lagos, Port Harcourt or Abuja. But one thing that appears to make do have a rethink is the fear of land agent scam, the fear of the omoniles and government.
On this note, the Chief Coach has put together the 10 commandment of real estate investing that can guide you in making informed decision when buying a property or land in Nigeria.
1. Thou Shall Have A Why!
When considering buying land in Nigeria, there some questions you need to ask yourself before putting down your hard earn money. Such questions are why do you want to buy? Whats your goal for buying property, are you buying for capital appreciation, for cash flow, for retirement of fun?
The truth is when your goals are pre-defined, its helps you to know where to put your money and also help you recognized and take advantage of opportunities that suit your investment objectives. When you understand your why, its helps you to make informed decisions on your investment moves.
2. Thou Shall Have A Trusted Team
Your property purchase deal is as good as your real estate team. Before you go into any property deals, make sure you have established some personal relationships with whoever is introducing you to church property.
Also you need to work with a trusted team of real estate professionals so as to have a successful real estate transactions. Property purchase can be complicated sometimes if you are dealing with the wrong people, therefore you must build a team that must be composed of people you can trust.
Your team members include:
i. Your Agent
ii. A property lawyer
iii. A Surveyor
iv. An Architect
v. An Engineer
just to mention but a few….
3. Thou Shall Use Your Six Senses
Real estate investment involved either using of your six senses or you depending on a trusted team who has developed their senses for property investment.
What are the senses we are referring to here?
They include your sight, smell, ears, taste and the unseen senses.
To avoid falling victim of land scam in Nigeria, before you commit your money into any property, makes sure you go on site visit. While on Visit, watch out;
- For signage, Lop holes and ask questions.
- Never be in hurry to leave site so as to see if there will be any interference
- Patronize the locals, make friends with them to see if you get any news in respect of the land
- Follow your unseen sense and watch out for economic indicators and future prospects.
When others are seeing bushes, swamps, you should begin to see money with the use of your senses.
4. Thou Shall Not Sell What You Own Unless…
One very unique and interesting thing about real estate investment is that, when you hold on to a property long enough, you usually come out smiling.
The first instinct of people when they are financially challenge is to sell properties they own and they usually throw it away at give away prices. For instance if you buy something for N500,000 and only to sell it for N250,000 because you need money is a bad market.
If you play real estate very well and correctly, you wouldn’t try to sell what you own especially cash-flow producing properties except if your real estate investment objective is to buy and sell within a short while.
5. Thou Shall Buy Low And Invest In Low Risk Assets
When considering buying land and properties, most especially if your goal of investment is for capital appreciation, it is important you buy low priced properties that have low risks and when you have successfully done a string of small priced properties, you can consider higher priced ones.
The truth is, if you understand your why and you have build a trusted team who have developed themselves in real estate deals, you would avoid creating problems for yourself by not speculating wrongly when investing in real estate.
6. Thou Shall Stay Close to Your Property
In Nigeria, most especially in Lagos, it is a common practice you buy a property, do the paper works and return to the spot after 90 days only to meet a 2 story building which could make you start wondering if you are in a dream or not.
If you’re not buying from a trusted real estate development company, to avoid stories that touches the heart, once in every 90 days Visit the people who sold land to you and takes small gift along especially for the small boys around the house.
You are doing this to avoid trouble because by the time the father who sold to you might not be available, the small boys who you choose to ignore then would have grown and will always remember how stingy or cheerful you are, which ever may be the case.
7. Thou Shall Not Chase Fantasies
One of the reason for losses in real property purchase is chasing of fantasies.
Focus is a very key factor to achieving ones set goals in land or property purchase. Know what you want, go for it, get it and continue with your plans. For instance, Instead of building a 70 rooms mansion that may take you 20 years to complete, why not do a string of 1 or 2 bedroom units scattered across the country.
8. Thou Shall Get Into Debt
Why debt? I presume that is the question on your mind.
In reality there are 2 type of debt, which are;
i. Investment debt
ii. Consumer debt
The truth is, when you get an opportunity to get a good real estate deal with a flexible payment plan then its good for ones to get into such debt. With this, you know that every month you are committed to a target instead of you spending unnecessarily on immaterial things.
Your goal of becoming a land or house owners comes into reality fast this way instead of you trying to save up first and when you will be ready to deal the price of the property would have gone up or might have been sold out.
9. Thou Shall Diversify
This is very simple and straightforward.
In whatever you do there must be cash flow, you must shift your focus from making pile of cash to creating streams of cash.
To achieve this, you need to diversify your investment, look inward to discover some other form of investment you can put your money in even in the real estate sector to have a multiple stream of income.
The truth is, if you continue to buy the same kind of property all the time, you may end up in problems. Don’t just keep buying land in same location with the aim of reselling instead you consider buying in some other places to build structures for rental income as well. Don’t underestimate the value of rental income. Sometimes you also buy to build and resell.
10. Thou Shall Duplicate….
Just because you bought a plot of land in 2010 doesn’t mean you’ve arrived, you need to get down and duplicate the whole process again until you achieve financial freedom.