Investing in off-plan property in Nigeria can be a lucrative venture if approached with the right knowledge and due diligence.
This guide provides an in-depth look at what off-plan property is, reasons to invest, things to consider before making an investment and the potential risks involved.
What is an Off-Plan Property?
Off-plan property, also known as pre-construction property, refers to real estate that is available for purchase before it has been completed.
Buyers can view the project site, floor plans and 3D designs of the proposed property and often benefit from lower prices and exclusive discounts for outright purchases.
Reasons to Invest in Off-Plan Property
- Price Advantage: Purchasing off-plan property often allows buyers to secure a property at a lower price compared to completed properties.
- Customization: Early buyers can sometimes influence design choices, allowing for a more personalized living space.
- Potential for Value Appreciation: Properties can increase in value by the time construction is complete, providing an excellent return on investment.
- Attractive Payment Plans: Developers often offer flexible payment plans to attract early buyers, making it easier to manage finances.
- Rental Income: Once completed, the property can generate rental income, providing a steady cash flow.
What to Consider Before Purchasing an Off-Plan Property
- Legal Documentation: Ensure all legal documents are in order, including the sales agreement and building approvals.
- Due Diligence: Verify the credibility and reputation of the real estate developer. Assess their past projects, quality of the construction and finishing.
- Project Location: The location of the property is crucial. A good location can significantly impact the property’s value and rental potential.
- Design and Specifications: Review the proposed design and specifications to ensure they meet your expectations and needs.
- Payment Plans and Discounts: Understand the payment plan options, including installment payments and any exclusive discounts for outright purchases.
What Are the Risks Involved in Buying Off-Plan Property?
- Project Delays: Construction delays can occur due to various factors, affecting the delivery date of the property.
- Market Fluctuations: Changes in the real estate market can impact the value of the property, this can occur due to changes in government economic policies. The effect of this usually results in increase in the cost of construction and labour.
- Changes in Project Scope: Developers may alter the project plans, which could affect the final outcome.
- Land Revocation by Government: In some cases, the project land is revoked by government. This is why it’s essential to do due diligence and confirm the title documents and building approval.
- Relocation: In large estate off-plan development, there are instances where buyers face the challenge of relocation from their initial allocation to another one, usually due to expired duration for agreed payment date.
Available Off-Plan Properties for Sale
There are numerous off-plan properties available for sale. These properties span various locations, designs, and price ranges, catering to different investment preferences.
Conclusion
Investing in off-plan property in Nigeria can be a wise decision if approached with caution and thorough research.
By considering factors such as the developer’s reputation, project location, legal documentation and potential risks, you can make an informed investment that offers significant benefits.
Always perform due diligence and seek professional advice to navigate the complexities of off-plan property investment.
Read Also: 4 Bedroom Duplex (The Appeal of Modern Living Spaces)
