Common pitfalls to avoid in real estate in 2023
When buying property in Nigeria, there are several common pitfalls to avoid in order to ensure a successful and profitable purchase. One of the first things to consider is the location of the property. It’s important to research the area and consider factors such as proximity to schools, hospitals, and places of employment. Additionally, check the security and political situation of the area, as instability can negatively impact property values.
Another pitfall to watch out for is buying property without conducting proper due diligence. This includes thoroughly researching the property’s legal status, checking for any outstanding debts or liens, and ensuring that all necessary paperwork is in order. It’s also important to have a professional surveyor or structural engineer inspect the property to ensure that it is structurally sound and free of any major defects.
Another pitfall is buying property that is overpriced. The property market in Nigeria is known to be highly inflated, and it is important to avoid paying more than the property is worth. It is advisable to engage the service of a professional property valuer or real estate agent to help you determine the true value of the property before making a purchase.
Additionally, be cautious of developers who may not have the financial capability to complete a project, or who may not have the necessary approvals and permits to begin construction. Investigate the developer’s reputation and track record before making a purchase, and be sure to verify that all necessary approvals and permits have been obtained.
Lastly, be aware of the various taxes and fees associated with buying property in Nigeria. These can include transfer taxes, stamp duty and legal fees, which can add significant costs to the purchase price. It is important to budget for these expenses and factor them into your decision-making process.
In conclusion, buying property in Nigeria can be a profitable and rewarding experience, but it is important to be cautious and do your due diligence to avoid common pitfalls. By taking the time to research the location, conduct proper due diligence, be aware of the true value of the property, investigate the developer’s reputation, and budget for taxes and fees, you can increase your chances of making a successful and profitable purchase