How to Find the Right Investment Rental Property in Nigeria
Looking to invest in right investment rental property in Nigeria?
One of the keys to succeeding with investment rental property is finding the right rental property and who to trust. In this post, is a guide to help you get started in finding the right property that will help you to generate additional income.
Decide on your real estate rental investment goals
You should know exactly what you want to achieve with your real estate investment rental property.
It should be at the core of your buying decisions. You need to decide if the property is intended for own-stay or as an investment tool for future purposes.
If you’re looking for a Return on Investment (ROI), then ask yourself these important questions – are you looking to earn possibly lower but steadier monthly returns via rental income, or are you looking to profit through the long-term endeavor of a future resale of the property? Or perhaps both.
Consider Hiring a Real estate Consultant or Broker
After determining your goal then you should consider whether you want to look for rental property on your own or whether you wish to use a real estate broker to assist you in the process. My advice is to consider hiring a trusted real estate consultant
There are certainly many advantages to working with a reputable real estate broker when you are looking for investment rental properties you could invest in.
In many cases, brokers may know of properties which have just come on the market and which may not have been noticed by others yet. A real estate consultant or broker is also usually well versed about dangers and the local neighborhood, which can be important if you are not from that area.
Decide Your Budget and Consider your Affordability
Most people so ambitious and thinking they know about real estate rental property and they make the mistake of what they can’t afford.
What you need to do first is to first is to investigate and decide on a better budget of what you can afford and the eligible to buy the rental property
Secondly, your price point should match your buying intent or budget. This means, if you’re planning to lease out the property, choose a price range that will potentially give you high returns by calculating your rental yield per annum.
Don’t make the mistake of going above your budget if you are not financial stable to get it the property
Do Local Research about the Property
The purpose of this research is to be sure you do not overpay for the property you ultimately purchase or about to purchase.
When you do purchase a piece of investment property, you need to make sure that the deal you strike allows sufficient room for a profit margin just in case there are times when you do not have a full occupancy.
Identify your target market
Identify your target/potential buyers or tenants. When looking for a property that you intend to lease out and earn monthly returns from, it’s best to know whether you’re looking to tap into the working professionals, students or families market.
Know exactly who your primary tenants will be. By this, it will help you decide on the right type of investment rental property to buy and maximize your Return on Investment (ROI). Leasing your property to working professionals opens up the possibility of earning higher income.
Select the right location
Select a good location to buy your real estate investment rental property. But you should also know that selecting the right location is crucial in determining the success of your investment but just because it’s a good location, doesn’t mean it’s the right one for your investment intent.
Carefully Consider Advantage and Disadvantages of Rental Property
Carefully consider both the advantages and disadvantages of purchasing a property that could be labeled as a fixer-upper.
While you may be able to purchase the property for less money than other properties in the market, you may very well find that you have purchased a money pit propety.
In the event that a lot of major repairs and renovations are required, this can equate to a large investment of both time and money. In this case, it would be better to pay more for a property that requires less attention.
Inspect the Property before Payment
Before you purchase any property, take the time to have it inspected. Even if you have inspected the property on your own, you should still have a professional go over the property to be certain that all is in place and that he property is safe.
An inspection can sometimes turn up problems which you might not notice but which could ultimately cost thousands of Naira to correct.
You will typically be required to pay for the inspection; however, it is a wise investment that could save you quite a bit of time and money.
Wrap Up and Final Advice!
Finally, do not make the mistake of ‘settling’ for a property simply because you are in a rush to invest in rental property. This could result in an investment that will require you to spend more time and/or money than you originally planned and detract from your profit margin.