by Realtor Patrick 
How to Invest in Off-Plan Properties in Lagos
Housing is a basic necessity for humans and its importance to welfare cannot be overemphasized. Unfortunately, access to affordable housing has continued to elude the average Nigerian. A number of schemes by government agencies and private institutions have been devised to make ownership of houses better cheaper and even more flexible than the traditional sales system. One of such scheme is the off-plan sale of properties.
The term ‘Off-Plan Properties’ refers to properties available for purchase before it has been constructed. In layman’s understanding, it is buying a house, an apartment e.t.c before it is built. Off-plan is simply buying into an idea rather than a physical asset. Offplan properties are mostly bought by people who want to take advantage of low prices at the off-plan stage.
Among so many other reasons, reduced price and convenience in payment are the basic reasons people invest in off-plan properties. Off-plan are often sold at a reduced value compared to a completed project because demand most times is often than not very high at the completion stage.
Off-plan properties afford the buyer a very flexible payment plan so one could spread payment over specified months. Typically, once the buyer deposits 10 – 20% of the agreed payment, he is given the opportunity to spread the balance for a specified number of months. As it is the norm for most completed houses to be sold outrightly, only off-plan affords buyers the opportunity to pay small small.
Buying off-plan may also be the only way to get a property within a specific location or set features as the choice may be limited at construction starts or is completed. Off-plan also gives buyers the opportunity to tweak and make adjustments to the designs to something that suits them.
How to make money investing in Off-Plan Properties
Off-plan properties are deemed very attractive and valuable if there is a high level of infrastructure in the immediate area such as an access route, an expressway, or a university. You can flip the property before the completion.
Let’s say you buy an off-plan property for 20 Million Naira and an initial 2 Million Naira deposit of 10% was made. As demand increases months down the line, the property price in the area rises by 5%, meaning your off-plan property will now sell at 21 Million naira. At the completion stage, you might be willing to flip the project by selling almost double to an investor or you put it out for rentals or short lets.
https://realpathproperties.com/property-category/off-plan/ | See Off-Plan Properties for sale in Lagos and Ogun | How to Invest in Off-Plan Properties in Lagos
Risk in Buying an Off-Plan Property
No investment goes without risk, so if the buyer of the property is buying an off-plan for investment rather than a home, the property might not increase in value to the expected extent, it might fall or stay the same leaving the owner to use it for other purposes not intended.
Another risk with off-plan properties is that the finished project may not meet the buyer’s original expectation either for personal reasons or material defects.
There is also the problem of certainty in of completion date of the property. Off-plan properties sometimes take longer than expected due to the developer’s inability to accurately predict the property’s delivery date. This delay may also be a result of the low turnout of investors who in most cases are the primary source of finance for the project leading to the loss of some investors who finance their projects through loans and mortgages
Developers in Nigeria are known for their competitive behavior, instead of using funds invested to finance a proposed project, they start competing with other firms and direct funds generated into financing other projects or initiating a new one which makes the project longer than expected
Off-plan properties are marketed at times before the commencement of work on-site. Although the best to buy an off-plan property is at the pre-launch price. you should confirm if there are building restrictions or encumbrances from the government. Always make sure that the project is fully endorsed by the government before you invest in such.
How to Reduce the Risk in Buying Off-plan Properties
- Do your research on the prospective area where you are looking to purchase your off-plan properties. Make sure it is in a good location, Off-plan properties are a preparation for an area’s future so you want to ensure that it is worth your while.
- When it comes to location, Abuja, Lagos, and some parts of Ogun state offer Nigeria’s best off-plan investment prospects, this is because the demand for residential housing in these areas is strong and growing daily thus causing price growth and rental yield growth for the area.
- Look into the developer’s track record and get an idea of the quality of their projects and how long it took to complete the project
https://realpathproperties.com/property-category/off-plan/ | See Off-Plan Properties for sale in Lagos and Ogun | How to Invest in Off-Plan Properties in Lagos
https://youtube.com/channel/UCvAF4INDB2rxQeJuAxZXCcg | How to Invest in Off-Plan Properties in Lagos
How to Invest in Off-Plan Properties in Lagos
How to Invest in Off-Plan Properties in Lagos
How to Invest in Off-Plan Properties in Lagos
How to Invest in Off-Plan Properties in Lagos
