If you are a Nigerian living abroad, there are basic mistakes you must not make when investing in real estate back home.
Real estate investment is very common with Nigerians living in the diaspora.
According to research, 70% of the active buyers in the Nigerian real estate market are Nigerians living abroad.
Many of these people living abroad make a lot of mistakes when it comes to real estate investment. These mistakes if not avoided can be very grievous.
Let us consider some of the real estate mistakes you must not make if you live abroad.
1. Not doing enough research
Before investing in real estate, you must make sure you do enough research. One of the greatest mistakes you can make as a real estate investor especially if you live abroad is to just invest blindly without doing your homework well.
You need to be well informed about the property, the location, the prices, and the growth potential of the property. You can ask for prices of similar lands or properties in the area to avoid being overpriced.
If you fail to do a thorough research, you may be buying a government property or a land that has been sold to someone else.
Don’t just rely on the information provided by the real estate agent or property seller. You must not allow yourself to be rushed by some real estate agents who are just interested in the commission from the sale. Take time to do a thorough research.
Also Read: What to Look Out for When Buying a Land in Enugu
2. Ignoring legal processes
When investing in real estate, some legal processes must be followed. Some people make the mistake of rushing to buy a property without following due legal processes. They see Facebook or Instagram ads showing a property for sale and jump on it without investigating the property’s legal status, ownership history, title deeds, or other documents.
If you don’t want to shed premium tears of regret, do not neglect legal aspects of the land purchase like property documentation.
The cost of not following due legal processes when investing in real estate can be very grievous.
Also Read: How Land Scams Work in Abuja
3. Investing based on emotion
Many times, people living abroad make the mistake of just investing in real estate because of the fear of missing out. They may not really need the property but because their friends or family members are buying, they rush to buy as well.
If you rush to invest in a property out of emotion, without doing proper research, it may be a costly mistake. Investing in real estate is a good decision but you must do it carefully.
When you invest based on emotion, say fear or greed, you won’t be able to make logical decisions. You may make decisions you will later regret.
4. Not considering hidden costs
Most Nigerians living abroad make this mistake a lot when they invest in real estate. It is dangerous to assume that the cost quoted by a property seller or a real estate firm is the total cost for the property. You need to inquire about any hidden costs.
Additional costs that may not be stated include taxes, registration fees, stamp duty, legal fees, agent fees, maintenance fees, etc.
Having proper information about the total cost of the property will make you able to decide if you can afford it or if it is worth your investment.
Also Read: What Are the Fastest Developing Locations in Abuja for Real Estate Investment?
5. Not using a trusted real estate agent
The greatest mistake you can make as someone living abroad looking to buy a property is not using a trusted real estate agent.
Most people trust their family members or friends to help them buy a property. Some have lost a lot of money through this because the people they trusted squandered their money.
The best bet is for you to engage the services of a real estate agent or a lawyer. A good real estate agent will help you carry out a smooth transaction. They will follow all legal processes and verify all documents.
6. Depending on relatives or friends to make property decision
Another serious mistake people living abroad and wanting to invest in real estate make is to rely on friends and family members’ decisions.
That someone is your family member or friend does not mean they know enough to make a good decision.
Your relatives or friends do not have a vested interest in the property you want to purchase, so they may not be able to make the best decision for you. You need to seek professional advice from real estate experts.
7. Procrastinating on opportunities
While it is good not to just rush to buy or invest in a real estate, you also do not need to procrastinate. You must recognize opportunities to invest in real estate on time and do so immediately.
Investing in real estate may be a life-changing opportunity you need to grab that opportunity when it presents itself. You can buy a property in an undervalued location at a meager price and then just in a few years, it appreciates so much to earn you a big fortune.
This was what happened in the Ibeju Lekki area of Lagos state.The Selling prices of lands in the area have increased by 20-30% in just five years and they continue to increase. Imagine those who bought land in the area five years ago.
Knowing the right time to invest in a property or real estate cannot be over-emphasized.
Once you have done your due diligence to discover a property you need and worthy of your investment, do it immediately. You won’t have any cause to regret the decision in the near future.
Also Read: What You Should Know About The Deed Of Assignment in Abuja
Conclusion
We have considered the real estate mistakes you must not make if you live abroad.
Remember, not doing a thorough research, not following legal processes, investing based on emotion, not using a trusted real estate agent,
depending on relatives to decide for you and procrastinating on opportunities are some of the common mistakes people make.
Knowing these mistakes and avoiding them carefully will help you make wise real investment decisions and will save you a lot of stress from a wrong investment.
Don’t be a victim of land scam in Abuja. Reach out to me on +2348033352126 or click on this phone number to send me a WhatsApp message, +2348033352126
