Real Estate: Before you buy a property (part 1)

It was recently in the news that the popular Nigerian song artist with the stage name Wizkid, held a concert in the United Kingdom. The 20,000 capacity London O2 Arena played host to this musical concert and the tickets sold out for the 3-day show. From video clips, it seems attendees got value for money. Value for money in this case would seem like the best entertainment in an environment set up to deliver such.

There is a popular saying that preparation leads to greatness. The artist and his handlers sure put in great effort and prepared to deliver the expected value for the show. They had a goal which most likely was to create a great show expected to sell out the London O2 Arena. Make money, capture stellar moments as media bytes for the records. Of course, I am not in Wizkid’s management team to know what the goal is in their exact words.

The focus here is about the preparedness by the artist and his team for the goal they set out to achieve with the concert. While we are not privy to the exact playbook, it would seem like the playbook shows their goal was achieved. The preparations, plans and actions paid off it would seem. So this brings me to ask you the first question that you must provide clear answers to before you buy or invest in a property.

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Do you have a clear goal for your purchase or investment in real estate? Simply put; what exactly do you want to buy or invest in? This is an important question you must answer before you buy or invest in a property in any location. Being able to answer this question sets your investment on a path to its success.

Below are common goals that I hear people set for real estate purchases.

1. To buy an undeveloped plot outside an estate
2. To buy a serviced plot in an estate
3. To buy a house in a serviced and laid out estate
4. To buy a house outside an estate where no service fees are applicable.
5. To own commercial spaces

The second question you must also answer is; what is the purpose of your real estate purchase or investment? Simply put why do you want to buy the land or house or have an investment in this type of real estate.

Below are some examples of real estate purchase goals and their purpose.

1. To buy an undeveloped plot for keeps
2. To buy a serviced plot in an estate for keeps
3. To buy a house in a serviced and laid out estate for personal use
4. To buy a house in a serviced and laid out estate, put it up for rent to generate income.
5. To buy a house in a serviced and laid out estate for keeps after a money windfall.
6. To buy land which you can sell later to cater for children’s education (insurance for children’s future education)
7. To invest in commercial lots which you can re-sell in the short-term or lease for the long term to generate passive income.

We all engage in real estate investment or purchase to achieve specific goals and for different reasons. Through research, we came up with 24 reasons why an average human being, regardless of location around the world engages in real estate. The 24 reasons checklist is available for free via this link https://bit.ly/twentyfourreasons

Clarity on the exact piece of real estate that you should buy and the purpose for that purchase does three major things for you.

1. It prevents you from buying without an aim thereby wasting resources in cash and kind.
2. It helps you narrow down your selection quickly. Your goal and reason for investing in a piece of real estate make it easy to find a right fit property.
3. It helps you to know the exact things to ask for when you begin to search for the right fit property.

Setting a real estate investment goal, putting in efforts to plan and prepare to achieve that goal sound like a piece of work. In a clime where falling into luck or happenstance seem to be the easy way. You may also feel discouraged to set a goal with a purpose let alone have an action plan to which you dedicate efforts when there are popular tales of lucky investors or investments. Do not be discouraged. Set clear goals with a purpose for your investment in real estate especially because your financial needs and wealth creation journey are peculiar to you. The market does not care about your peculiarity so you should care.

Create a plan towards your goal, work the plan and adjust where necessary for best results. Even when it means getting real estate investment literacy first, to help you get prepared for the actual investment. It counts for something. If Wizkid’s concert at The London’s O2 Arena recorded success it is because there was a clear goal with a purpose and an action plan. You also can record success with your investment in real estate when you take these simple steps.