Investing in landed properties can be a great way to build wealth and create passive income. However, it is vital to know the potential traps that can catch unwary investors.
Here are five traps to avoid before investing in landed properties:
1. Not working with a certified professional:
A certified professional has the knowledge and skills to do the job right.
It would be best if you also got a professional assessment of the property to make sure that it is in good condition and that you are not overpaying.
If you hire someone who is not certified, there is a risk that you will not be able to get help if there are problems, which could leave you and the land project stuck.
2. Not conducting thorough research about the neighbourhood and landmarks:
Before you invest in any property, it is important to do your research and understand the market. This includes understanding the location, the demographics, the current market conditions, and the potential for appreciation. Investigate the neighbourhood where the property is located. Factors like proximity to schools, healthcare facilities, public transportation, and amenities can significantly impact property value.
3. Failure to plan within your budget:
It is important to only invest what you can afford to lose. Don’t overextend yourself financially by investing in more property than you can manage. This could lead to financial problems if the market takes a downturn.
4. Assumption of verification of property document:
It is important to note that assumptions are not always true. In fact, it is often the case that assumptions are violated during the execution of a property.
Consult with a real estate attorney to ensure that there are no legal issues, disputes, or encumbrances related to the property.
5. Negligence of asking about the Land Title, Zoning and Town planning regulations:
Land title is a document that shows that someone owns property, even if it is not registered (i.e., recorded on the official list of the Land Registry). Failing to adhere to legal and regulatory requirements is a serious trap that can lead to costly consequences. Verify that your property is zoned for its intended use. Zoning laws can restrict how you can develop or use your land. Obtain all necessary land documents for construction.
By following these tips, you can increase your chances of success when investing in landed properties.
Remember that patience, due diligence, and a clear strategy are key to making informed decisions in the real estate market.
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