- If you missed out on the previous parts of this series, you can catch up by clicking here to read part 1 and here to read part 2.
Real estate buying decisions take root from our emotions. Drawing lessons from those experiences help to make a success of next purchase. Although, we would wish by default, that a real estate investment process per time is seamless. But can every real estate investment be without its peculiarity? The sincere answer is that not all investment feats will be without their challenge. And this is because no two real estate transactions have the same dynamics.
Even within the same locality, you will most likely be dealing with different entities or people per time. So, the essence of this part of the guide is to help you expect challenges. The anticipated challenges that may arise with real estate purchases are not to make you stay away from investing or buying. The exercise is only to help you put in perspective the peculiar dynamics of a real estate purchase project. To also find what it takes for you to win with your purchase within legal bounds.
A way to anticipate and curtail possible real estate investment challenges is to ask;
1. What three things must not be repeated in your future or next purchase of real estate?
Listed below are a few perspectives to guide you to answer the above question;
- In a next purchase, you will ensure that an extra layer of due diligence is conducted. To ascertain certain conditions or aspects of the property.
- You will no longer buy land to keep if you can not register a title on it or secure the land within six months.
- You will not invest in a property that will not begin to deliver return on investment in at least 18 months.
This question could also mean the investing mistakes of the past that must not be repeated. You see, every penny that you have and desire to protect, multiply and manage by investing in real estate counts. You do not want to be dissipating resources. You do not want to be doing things the same way while expecting a different result. Thus, once you have identified the three things that must not be repeated in your next purchase, you can frame them up. Keep them in your purview or get an accountability partner who keeps a check on you while on the next purchase.
We get excessively sentimental about real estate. Therefore, having an accountability partner in your real estate journey is critical. Especially when the piece of real estate is not for personal use. Your accountability partner must be unbiased and vast in real estate investment matters. Your investment goal must also be understood by the partner that you select. You can request a real estate investment accountability partner or coach via firstname.lastname@example.org
When it comes to buying anything at all, we want quality. This means that what you are buying must not fall below a certain standard. This standard can be set by you or by the market. In real estate, there is the market standard per area. And there is also the personal standard or preference. Convenient, luxury, perfect, functionality, affluence, smart etc are words that describe personal preference in real estate. The market standard may not be the best quality standard or one that you prefer.
For instance, housing units in mass housing schemes have a certain market standard. Some people may accept that as a personal standard while some other people will prefer extra qualities. Such personal preference in quality may not be available or workable within a mass housing scheme. In such a case, you may embark on finding a piece of real estate that delivers on your preference. And to make a success of your search, you should ask yourself a second question;
2. What makes a plot or house worth buying for me?
Based on research and experience, below are a few parameters that determine or describe the quality of real estate that people buy;
- The property has a clean title
- The piece of real estate has the potential to appreciate in value
- The property sells for the exact amount set aside for it.
- The house design is beautiful.
- The location or neighbourhood is fantastic.
- The property is cheap compared to the market price or perceived cost.
- A respected person says it is okay to buy the plot or the house.
- The person or entity selling is authentic.
- The property is perfect for what I need it for.
A combination of two or more parameters can define a piece of real estate worth buying for you. You can also come up with your real estate quality based on your experience, exposure or real estate investment literacy. Only ensure that your literacy is sound. Your set of qualities can also be based on your research and innovation to create a different standard.
By having a basic set of parameters for selecting a piece of real estate worth buying, you have reduced your chances of being swayed. You would have also minimised the confusion that may arise from seeing many offers.
In the case that you are actively searching for a piece of real estate to buy, your set of parameters helps you communicate clearly. This way the professionals that you engage find it easy to deliver. Some of the quality indicators or preferences can also become a selling point when you want to exit your investment.
About the Author
Oluwakemi Adeyemo is a highly sought Real Estate Investment Advisor and Coach. The expert who help investors to make more money in real estate. She believes that real estate is designed to sustain human existence and is the bedrock of wealth creation. Her job is to get to know your investment goals and provide you with expert yet relevant analyses on real estate investment options.
She has helped investors save more than ₦550,000,000 that would have been lost in real estate. She has also assisted to source vantage properties for businesses and individuals within record time. Closed transactions well over ₦1,350,000,000.00 and counting.
She researches a lot and scrutinizes real estate investments so you don’t have to. She helps institutional investors analyze investments and optimize profit in real estate. Her skill and expertise help individual investors understand better the concept of real estate, prevent regrettable mistakes and boost investor confidence. She is also an Author and Column contributor in Businessday Newspaper, BellaNaija and Nairametrics.