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Real estate investment is one of the safest and surest investing avenue you may want to channel your hard-earned cash into. This is because decades down the line, you can still make some good returns on your investment. In Nigeria, owing a property is seen as a way of guaranteeing one’s future income streams.
If you are looking to buy a property for renovation, as against getting a land to erect a structure on, you may have made a wiser decision. This is because, depending on what you intend to do with the property, you can save some good money when you go the path of renovation.
However, just before you run off to buy a property and then renovate, it is worth stating that there are things that you have got to consider before buying a property for renovation. Experts have discovered that a bad face-lift can cost you an arm and a leg. Therefore, making the tips in this article yours could help save you that trouble a great deal.
Draw up a Budget:
This is one of the most important tasks that you have got to have in place when you are thinking to buy a home for renovation. You want to avoid over-spending beyond your budget. It is therefore necessary to have a maximum limit to how much you can spend on renovation and how much you can pay for the property.
You will need to put into consideration all the necessary repairs or fittings that must be put in place before the property is fully available for rental or resale. Keep a spreadsheet of your budget and stick to it. Also remember to factor in the cost of verifying the property title, effecting changes to the property title (change of ownership, etc). In some areas in Lagos, you may have to pacify the touts known as omo oniles.
Survey the Environment the Property is Located
The first rule of thumb is that you shouldn’t buy a property that is close to a railway line or a swampy area because of the misfortune and hazard involved. Imagine if you had to buy a house near Yaba railway line, or the railway line in Mushin; no matter how strategic the building is, if you decide to do this, you may risk losing loads of money because the Government, for instance, may decide to construct an extension of the railway line and you can lose your property and investment to them.
In addition, you may reconsider wanting to buy a house in a swampy area like Odo-Eran in Bariga area, or in some swampy areas in Surulere, amongst others. This is because property around these areas might sit below street level and that might be disastrous in the long run.
Have an Idea of the Cost of Renovation
It is alright to know the amount a house may likely go for. Consequently, it is also pertinent that you factor in the cost of repairs and general facelift. One of the reasons why this is very important is that you want to be sure that overall after renovation, and for one reason or the other you didn’t like the property, you can still sell it and recoup all your investment. Hence, you have to ask questions like; Are the changes you want architecturally possible? How much will it gulp? Can the makeover expense be funded?
So, it is imperative that you do your own background check, so that you do not end up with a bad investment.
Know the Layout
It is very important that you have an idea of the layout that you may be working with. This is because you may already have an idea of the type of layout you are looking to work with. It is true that numerous older styles of homes are built to have several rooms and the way they are structured might not work for you. Even though it is okay to break down walls and replant the structure, while it is certainly possible to knock down walls and rearrange the floor plan, it can be a very expensive venture to dabble into. Therefore, you have got to consider the layout of the building you plan to buy for renovation when drawing up a budget.
Don’t be Hurled into Making Hasty Decision
This is no time to be coaxed into what you do not want. After-all, agents make a living only when they are able to sell or rent a property. Therefore, do ensure that you do not allow any real estate agent to sweet-talk you into buying what you do not want. Take your time spending time to hunt for property that have, for instance, your minimum square feet and the total number of bedrooms and bathrooms that you want. In some cases, there may still be room for expansion but be sure that the house is something you are at home with before making a commitment.
Consider the Location
This is one of the other important things that must be considered first. In real estate, it is location, location and location; location is the golden rule, as far as the industry is concerned. So, you may look to do your research to know the prices of houses in the particular neighbourhood of interest. Remember, that areas like Lekki, Victoria Island, Ikoyi and some high-brow areas on the Island might cost you more than when you are looking to get houses around some mainland areas like Yaba, Surulere, Ketu and what have you. Knowing how much houses in the area you want costs would help you draw up an appropriate budget.
Financing
Before you decide you want to buy a house for renovation, you have to first determine whether you have enough money to pay for the facility or if you would want to seek a loan or get a mortgage. There are several banks and microfinance banks that will be willing to have you on their mortgage plan. Conversely, you may have been able to save up some money or you may consider raising money from close friends and family.
Talk to Professionals
If you have ever heard the aphorism that says that “no man is an island”, then you will agree that it is needful to seek the opinion of others, especially, in this case, an expert before you purchase the house. One of these experts to talk to are real estate agents. Real estate agents have a full of knowledge when it comes to property issues and therefore it is vital to sample what they think of a particular property before you purchase it.
In conclusion, be sure that you seek the services of only trustworthy agents that would not mislead you for the sake of making more profit. Good luck in your real estate investments!