5 major risks in Real estate investments and how to avoid them. –Niyi Olakitan
It is commonly known to everyone that there are risks involved in every business and investment which property investment is not excluded. Many investors have gone into this sector and have lost a lot of money and properties due to their lack of knowledge of some of the risks I’ll be sharing in this article. Hope this will be useful for real estate investors and also guide intending investors.
- Potential to fall into dubious owners.
A lot of fraudsters are out there parading themselves as the real property owner, lawyer and surveyor. They always act as the real people in charge of the property. What this set of people do is to put the buyer under pressure to pay for the property on time as there are other buyers on the ground. If you pay, you are on your own! Dealing with this set of people is a big risk every investor should fall into.
Take your time verify who owns the property, verify the documents, ask questions on any issue that’s not clear to you on the property, never get satisfied with unanswered questions or the ones they try to cover. Most importantly, verify the names of the owners at the ministry of lands to help you know the real truth about the property.
- Buying into Government Committed areas
Committed areas are those areas that the Government whether Federal, State or Local Government has interest in, such areas have been mapped out for certain facilities such as Hospitals, School, Airport, etc.
Most of the times some investors rely on the information given to by the sellers. Buying into such areas is a big risk that will definitely lead to loss of some amount of money.
It is necessary you verify the authenticity of the property at the Ministry of Lands, the owner should be free to release to you the file number and coordinates on the land to do your search. Then you’ll know if the property is committed or free.
- Buying into low growth areas
The area of investment matters a lot when investing in real estate, some areas in 100 years may not develop. Investing in those areas is just like a wild goose chase and this is a big risk due to the fact that for a long time, you may not be able to make any good return or profit from the investment rendering your capital useless in that place. To avoid this, get necessary information about the area before putting your money there. Know what the government is bringing to that environment and strategically invest your money there.
- Buying unregistered properties
Sometimes, those unregistered lands may have issues of government sudden need once it’s discovered that such property is not registered. Usually, when the government needs anything within that area, they just come for it.
Such properties’Survey should be registered at the Ministry of Lands to avoid stories that touch at the end of the day.
- Boundary Disputes
Buying into areas that have boundary disputes, the spillover effects sometimes lead to blood-letting.
You must be very sure about the history of the property, know if there have not been issues of boundary disputes between the neighbouring communities. You must also be sure of where they are giving you if it’s not in other community’s land because you may not be able to take possession of the property after payment so you don’t lose your investment.
In conclusion, for a safe and profitable investment, every investor should take note of some of the risks mentioned in this article and take necessary precautions so as not to lose your hard earned money.
Wishing you a profitable investment.
For further enquiries contact: Niyi on +2347063454002, email@example.com
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