A Few Tips To Getting A Suitable Location For Real Estate Investment
If you’re reading this article, then you’re probably in the top 1% of people thinking about investing in Real Estate. Given the current political situation in the country, coupled with the slowdown in the economy, we believe the time is ripe for you to invest in real estate. A lot of Nigerians are facing severe economic challenges and have resorted to selling some of their prized properties at mouth-watering prices. But you must be very savvy if you’re going to take advantage of some of the deals in the market. You’ll need to understand the demographics of the neighborhood, have a set budget, know your walkaway price and be willing to work hard to make the deal happen.
But how do you find a favorable location with good potential tenants, attractive purchase price and a nice return on investment?
Here are some general tips on how to find the best locations for real estate investment:
If you’re going to invest in real estate for the long term, then you should consider an area where the majority of the population has good jobs. These middle/working class communities are comprised of people with good jobs who also have friends with good jobs. If you invest in such neighborhoods you’ll gain peace of mind knowing that your potential tenants will most likely have steady incomes and can pay the rent easily.
Good Roads & Infrastructure
Your prospective neighborhood should also have good roads and easy access to the major highways. Easy accessibility to and from public transportation is a key component of a great location. In addition, the availability of adequate infrastructure is also a key indicator of a good location. You need to know if the locality is connected to the national power grid and if security and waste management are offered.
Population Growth and Security
A neighborhood that has a stable increase in population due to positive migration and growth in economic variables are indicators of a potential winning community. For example, high-density middle-income areas like Lekki have many gated communities. The feeling of safety and security increases the attractiveness of the property.
Retail and Entertainment Options
If a community has new retailers and entertainment options, establishing in the neighborhood, then you have another great indicator of a potential hit. That’s because investors typically look for vibrant communities with enough disposable income to support their businesses. By piggy- backing on the research made by these smart investors you can smile all the way to the bank.
The purchase price of property in question is a major determinant for your investment thesis. Always consider the potential return on investment and payback period for each investment before you decide to.