Investing in the real estate industry has always been one of the safest investment options from time immemorial. They might be incapable of skyrocketing in value in a very short span, but they experience steady growth in value and are also the least vulnerable to unfavourable economic fluctuations.
Though every investment options provided by the Nigerian real estate industry is capable of generating wealth in the short and long term, with the right technical know-how, you can make a significantly higher profit by investing in commercial properties (offices, warehouses, shops, restaurants, car pack among many others) since they are usually let out at a higher rate and cheaper to maintain than residential properties.
The above does not necessarily mean that there are no rules of engagement when acquiring commercial properties. As a matter of fact, you need to be tactful and more importantly, follow the guidance of a real estate expert before deciding to make payments on any property of choice.
In the event that you decide to make the purchase yourself, below are some of the things you must look out for before signing the dotted lines:
- Location: Unlike residential apartments that attract more value when situated in a serene environment, commercial properties usually require the opposite. You are more likely to command a higher rate for your property if it’s situated in an area with more visible human activity. Another factor worth considering is the presence of enabling infrastructures that are capable of stimulating business growth in that area.
- Price: Obviously, sellers will try to convince you into thinking that their deal is the best you can get for a property of that specification. Make extra efforts to check around for similar properties and if possible, consult the services of an estate valuer (we can recommend one) while hunting for your commercial property of choice. In the event that an offer seems too good to be true (for instance, the disposal of an old building), make a careful evaluation of the fittings and amenities before reaching an agreement so as to avoid spending a ridiculous amount on renovations.
- Legality: Should the commercial property of choice have the first two features, your next logical step before making payment will be to follow up on the particulars of the property. Does it have the necessary permit to avoid demolition in the future? To hasten up the background check, consult a real estate professional for they know what and where to check for valid information.
From the above, we can deduce that acquiring commercial properties with the intention of maximizing returns requires logic and experience. There is a high chance of getting burnt if the right professionals are not consulted before purchasing a commercial property.
At rural homes, we specialize in the construction and maintenance of all forms of commercial properties (shops of all sizes, office spaces, restaurants, car parks, and many more) with the sole interest of furthering our clients’ interest. Be it in Abuja or any other part of the country, you are assured of getting a property which is less vulnerable to economic irregularities and are equally capable of generating high yields for short and long term purposes if you partner with us. Contact us today for free consultations and quotations.