Members of the public interested in real estate’s investment have been advised to engage the services of the right professionals from the on set.
Speaking at a virtual conference in Lagos on ”Key Issues in Real Estate Investment Decisions, the PrincipalParner, UbosiEleh& Co, MrChudi Ubosi, explained different real estate transactions, pointing out that they came with different challenges, hence the need to follow due process during transaction by using the services of the right professionals
This advice becomes handy following reported cases of fraudulent practices in the sector.
Ubosi buttressed his point, pointing out that the largest investment any investor could make in his lifetime is real estate;hence, “it is important that it is gotten right.”
He said “If they are in doubt about structural integrity, they should employ an engineer to verify. Get the solicitors involved in legal diligence, contract drafting and signing etc.
“This approach may seem expensive at the onset but could save one from fraudulent transactions and loss of funds.”
“Ensure that you get a professional opinion of value to ascertain that the sale price is not inflated,” Ubosi said, explaining that for 90 per cent of the populace, a real estate investment is the largest investment they will make in their lifetime.
He also spoke about others issues bordering on reasons for undertaken real estate investment, decision to build or to buy, title to the property, funding consideration/model and taking possession.
According to Ubosi who is a fellow of the Nigerian Institution of Estate Surveyors and Valuers (NIESV), real estate investment can be undertaken for shelter, land banking, hedge against inflation, income, saving for retirement, wealth creation, investment purpose,
tax break and deduction, and diversification of portfolio.
In all of these investment purposes, he pointed out that price and location should be considered as they go hand in hand.
“Sometimes you may pay a little more for a particular location but that gives you more profitable options down the road, “ he said
According to him, location would determine rental returns, capital appreciation, demand or otherwise
He noted that many occasions, not everyone could afford to buy a completed property due to the huge financial layout, but that some investors had a particular design or reason why they wanted to build.
Ubosi warned that title to the property in any real estate investment is key, listing Certificate of Occupancy,Statutory Right of Occupancy, Power of Attorney, Deed of Assignment, and Freehold (contracted pre LandUse Act) as the “most common ones, and are registered or registrable.”
Despite the fact that Nigeria has a land mass of 924,000 square kilometers, he said that less than 10 per cent is titled.
Stating the importance of title in real estate investment, Ubosisaid: “Title give one the legal right over the property and helps identify vendor as well as reduce the propensity for fraud.”
In many transactions, he said sellers just have documents for purchase receipt and survey plan, advising that due diligence should be well undertaken
and then possession of the property taken especially upon conclusion of the sale.
“Check that the property is not under acquisition or has issues with right of way.
“Land Use Act vests all land in the Governor of the State.So to regularise your title to your new acquisition, one must obtain Governors Consent,” he said
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