Do you want to get into real estate as an investor in Awka? Or are you already a real estate investor but want to become better and more profitable? There are mistakes you must avoid in this journey.
Making these real estate investment business mistakes can lead to losses, unprofitability, and regrets. Paying attention and ensuring you don’t make these mistakes is important.
Below are the real estate mistakes investors make in Awka and what you must do to avoid them.
1. Jumping into Real Estate Investment
You need money to become a real estate investor, but having the money is not the ultimate sign that you should get into real estate. It takes more than just having money to buy properties and lands to succeed as a real estate investor in Awka.
So, now you have the capital, you still need clarity of purpose. To have clarity of purpose, you must answer some questions. The answers to these questions will point you to the best place to start instead of doing trial and error.
What is Your Capital?
It is not enough to have money available for investment; you should be specific about how much your capital is and how you want to spend it. For example, you may have ten million naira as your total savings, but using all your savings as capital won’t be wise. So you can use seven million naira from the savings as your business capital.
Also Read: 7 Questions You Should Ask Before Buying a Property in Awka
2. Paying Cash
I must say this upfront. As a real estate investor in Awka, you should avoid paying cash for a property. Paying cash for a property eliminates the possibility of tracking and keeping payment records. It’s one of the real estate mistakes investors make in Awka that needs to stop. Deposit the money in your account and use interbank transfer to pay.
Without payment records, it will be easy for a dubious property seller to claim they were not paid, and you won’t have any evidence. So, don’t make that mistake today because there are now many ways to make payments without having to source cash, such as ATMs, apps, Mobile, Internet banking, and POS.
3. Not Using a Property Lawyer
You can enter the real estate business without a property lawyer, but only if you are ready for preventable stress and losing money because of oversight.
A property lawyer is like your legal eyes as a real estate investor. The lawyer ensures that you engage in legal deals and negotiate better. The property lawyer also assures your properties or lands by getting the necessary documents.
The important roles property lawyers play in the real estate business are many and life-saving for investors.
Also Read: Want to Invest in Igboland? Buy Properties in These Cities
4. Not Doing a Physical Inspection
Do not be among investors who do not physically inspect the property before paying. Physical inspection of the property allows you to assess the property thoroughly. Through physical inspection, you can ascertain the actual condition of a property and, by extension, the neighborhood.
If, for any reason, you can conduct the physical inspection by yourself, ensure that you find someone you trust to carry out the inspection, and if possible, you can join the inspection through video call.
5. Not Factoring in Repair and Maintenance Cost
You have conducted a physical inspection and seen the property’s condition. If it is not a brand-new property, you must factor in everything that must be repaired and the costs in your negotiation. Also, whether a brand new or old property, you must consider the cost of maintaining the property before buying.
Buying a property you can comfortably repair and maintain without sweating is better. This will help you become profitable sooner if you are into rentals.
Also Read: Where to Buy Affordable Properties in Anambra State with a Good Appreciation Rate
6. Making Price the Determinant
Though you have your capital, making price the determining factor will be detrimental. This is important because some investors, out of greed, may want to get two properties for the price of one, thereby making themselves vulnerable and an easy target for scammers.
So, it is better if your capital can only afford one good property in your desired location than to want a property deal that is too good to be true.
7. Not Negotiating
The process of negotiating allows you to get the best deal. Don’t fail to negotiate. When you negotiate, you can factor in the after-purchase costs, such as the cost of repairs and maintenance.
If you take your real estate business seriously and want to maximize your earning potential, then you should not only negotiate but should also be good at it.
One of the easiest ways to become good at negotiating is to have all the important data about the property you are negotiating for. When you have the details, you can make a better offer that will suit the parties involved.
Also Read: How to Get a Certificate of Occupancy (C of O ) for Your Land in Anambra
8. Not Involving a Third Party
It is always good to involve a third party when you want to acquire a property. One of the reasons this is important is the better chance of identifying loopholes and unfavorable details of the property.
Although you already have a property lawyer involved, you should get another person involved, but it must be a person you trust to have your best interest at heart. It is better to involve someone who will be affected if the deal fails.
9. Ignoring the Role of the Land Title
Some real estate investors don’t understand the importance of knowing the title of the property they want to purchase.
A property title shows the legal status of a property, its history, and the actual owner. Before you finalize the purchase of a property, request to see its title. A property lawyer will help you check the documents and ascertain their authenticity.
Pay attention to the title role if you want to succeed as a real estate investor in Awka.
10. Not Ensuring that Title, Interest, and Ownership are Transferred to You
You have made the payment for the property through any other payment channels aside from paying cash. The next thing is ensuring that the document’s ownership is transferred to you because that is your evidence of ownership.
Once the transfer of ownership is completed, you are not the authentic and proud owner of the property.
Also Read: Fastest Developing Locations to Own a Land in Enugu City
Conclusion
The real estate business is profitable but has its risks. It is always important to have a good knowledge of any business one wants to get into. Adequate knowledge of the business will make the journey easier and increase your chances of being successful.
Knowing and avoiding these mistakes in your journey as a real estate investor in Awka will also help you identify potential scams. Remember to involve a property lawyer or a third party, ensure you know the title on the property, and ensure that the ownership is transferred to you. Don’t pay cash, factor in the repair and maintenance cost, and don’t make price the determinant. Negotiate well and physically inspect the property.
Let me know the area you would like to get a property in and I will make it available to you. We have a list of properties for sale in each of these areas. I will be available to take you for inspection. Call me on +2349072987151.
