Apartment for sale: 5 things to consider before you buy
Everyone is looking for apartment for sale and in recent years, the real estate market in Nigeria has experienced significant growth with many first-time homeowners, or even serial investors opting to purchase real estate apartments as a long-term investment. In a State like Lagos, which is reputed to be the commercial capital and economic heartbeat of the country, buying real estate apartments is fueled by several factors, including the city’s rapidly expanding population, increasing urbanization, and a growing middle class.
Digging deeper into the factors responsible for this trend, one becomes convinced that sales of real estate apartments have come to stay. Let’s take Lagos’ rapidly expanding population, for instance. Lagos is one of the fastest-growing cities in Africa, with a population of over 20 million people. In fact, it is estimated that six new people migrate to Lagos every single minute, thus perpetually driving up the city’s population. Little wonder there’s so many apartment for sale in Lagos but not everyone is good for you.
This population growth has led to an increasing demand for housing, especially among young professionals and families looking to settle in the city. Buoyed by these demands, real estate developers have been building more apartments to meet this basic human need, leading to a surge in the number of available properties for sale.
Another factor driving the trend of buying real estate apartments in Lagos is the city’s increasing urbanization. Lagos is a major commercial hub in Nigeria, with a thriving economy and numerous job opportunities. Many people are moving to the city in search of better employment prospects, leading to a high demand for housing. As a result, real estate developers have been building more apartment complexes in prime locations to cater to this growing population of urban dwellers.
In areas like Ibeju-Lekki, Sangotedo, and so on, real estate developers are building a large market for affordable housing options for many Nigerians
Additionally, the middle class in Lagos, like many other mega cities in the world, has also fueled investment in real estate apartments. As more people in the city are able to afford to purchase their own homes, the demand for real estate apartments continues to increase significantly. Nigerians with the financial capabilities are constantly looking for properties that offer modern amenities, security, and convenience, making apartments an attractive option for many buyers.
For Nigerians looking to buy apartments, the pull-factor or impetus are many. One of them is the nearness to major commercial outlets that makes doing business easier for the investor. In Lagos State for instance, the city is home to a number of multinational corporations, embassies, and international organizations. For individuals offering one value or the other in the mold of doing business, they would rather stay close to “where it is happening” in order to position themselves for major financial breakthroughs.
Some other people buying apartments are simply buying luxury and comfort foe their immediate and future needs. While some see it as an investment against the rainy days. The beauty of apartments being that whether you stay in it or rent it out, the value continues to increase year after year.
However, whether you are a new entrant into the real estate apartment space or you are already a serial real estate investor, there are things you must do before buying a real estate apartment. I will share five of them with you in this article.
Determine the state of your finances
Buying an apartment for sale in one of the most capital-intensive personal investments that you can make, thus it requires that you give careful consideration to the state of your finances before embarking on it.
Before you start the process of buying an apartment, you must take a close look at all your financial documents. Compare them to your current income to see if purchasing a property fits within your budget without putting you at risk of accumulating excessive debt. While your colleague or friend may be able to afford the same apartment, thus serving as a challenge to you, it’s essential to base your decision on your unique financial situation, considering factors like your monthly income, expenses, and any existing debts.
In other words, determining how much housing you can afford requires careful consideration of your financial health. Analyze your income, savings, and expenses to establish a realistic budget. This budget will serve as a guideline during your house-hunting journey, ensuring that you stay within your financial means.
Creating a budget before you start searching for a house is essential. It helps you avoid the common pitfall of falling in love with a property that is beyond your financial reach. By knowing your budget upfront, you can narrow down your search to properties that align with your financial capabilities, saving you time and disappointment in the long run.
Additionally, understanding your budget allows you to prioritize your housing needs and preferences. You can allocate funds to essential features like location, size, and amenities, ensuring that you find a property that meets your practical and lifestyle requirements while staying within your budgetary constraints.
Research before buying apartment for sale
To kickstart your journey into the world of real estate, it’s essential to familiarize yourself with real estate listings from various sources such as newspapers, websites, and other online publications. Begin this process as soon as possible to familiarize yourself with the market and the available options. As you peruse listings, create a comprehensive list of homes that pique your interest and keep track of how long they’ve been on the market. Monitoring any changes in asking prices can also provide valuable insights into local housing trends, helping you make informed decisions.
However, navigating the complexities of the real estate market requires expert guidance. Therefore, it’s crucial to assemble a reliable team to support you throughout the process. Start by seeking the advice of a seasoned realtor or agent who possesses in-depth knowledge of the local market dynamics. A professional realtor can offer invaluable insights and recommendations tailored to your specific preferences and requirements, guiding you towards properties that align with your goals. At PWAN Stars for instance, we have professionals who can make buying education quite an easy venture for you.
Furthermore, legal considerations are paramount when purchasing a property, necessitating the expertise of a competent lawyer. A legal expert can review all contractual agreements and documentation associated with the property to ensure compliance with applicable laws and regulations. This thorough examination helps identify any potential legal issues or discrepancies that may arise during the transaction, safeguarding your interests and ensuring a smooth buying process.
In addition to legal scrutiny, it’s smart to enlist the services of a reputable surveyor to verify the accuracy and legitimacy of the property’s survey documents. A qualified surveyor conducts a thorough assessment of the property’s boundaries, structures, and overall condition, providing you with valuable insights into its physical characteristics and potential liabilities.
By assembling a competent team comprising a knowledgeable realtor, diligent lawyer, and experienced surveyor, you can navigate the complexities of the real estate market with confidence and peace of mind. Their collective expertise and support empower you to make well-informed decisions, mitigate risks, and secure a property that meets your needs and expectations.
Determine financing options
Navigating the process of financing the purchase of an apartment in Nigeria can be a daunting task, requiring careful consideration and informed decision-making. It’s essential to familiarize yourself with the available financing options to determine the most suitable approach for your specific circumstances. Several financing avenues exist, each with its own requirements and considerations.
One common financing option is the conventional mortgage, which involves borrowing funds from a financial institution, such as a bank, to purchase a property. Conventional mortgages typically require a down payment, which is a percentage of the property’s purchase price paid upfront by the buyer. Additionally, borrowers must meet specific eligibility criteria, including demonstrating a stable income, having a good credit history, and providing proof of financial stability.
Another financing avenue available to prospective homebuyers in Nigeria is the Federal Mortgage Bank of Nigeria (FMBN) loan program. FMBN loans are designed to provide affordable housing finance to Nigerian workers, including civil servants, employees of registered cooperative societies, and the self-employed. These loans offer competitive interest rates and flexible repayment terms, making homeownership more accessible to a wider segment of the population.
In addition, corporate real estate loans represent another financing option for individuals looking to purchase apartments that are for sale in Nigeria. These loans are typically offered by corporate entities, such as real estate development companies or financial institutions, and may come with varying terms and conditions. Corporate real estate loans can be tailored to suit the unique needs of borrowers, providing flexibility and customization in financing arrangements.
When considering any financing option for apartments for sale, it’s crucial to assess your financial readiness and capacity to fulfill the associated obligations. This includes evaluating your ability to afford the required down payment, which often represents a significant upfront cost in the apartment buying process. Moreover, maintaining a favorable credit rating is essential for securing favorable loan terms and interest rates, highlighting the importance of responsible financial management and timely bill payments.
Find a preferred location and choose a knowledgeable agent
When considering the purchase of an apartment for sale in Sangotedo or any other part of Lagos, selecting the perfect location is of significant importance. You should consider buying apartment in a location that meticulously aligns with your lifestyle preferences and the indispensable amenities that complement your daily routines. Several critical factors warrant consideration when evaluating potential locations, encompassing proximity to educational institutions, healthcare facilities, commercial hubs, and the overall level of security.
Similarly, easy accessibility to healthcare services, including hospitals and clinics, as well as schools for your children, is pivotal for ensuring your overall well-being as a homeowner.
Before you buy an apartment, you may also want to consider the presence of vibrant commercial centers and shopping districts, access to supermarkets, markets, and retail outlets, the security of the community or environment, amongst others.
Having settled for a preferred area or location, your next assignment is to search for a good real estate agent to help your search for an apartment that is available for sale, and meets your need. A reputable real estate agent is essential in finding the right apartment for sale.
Leveraging on their valuable expertise in the real estate apartment search, these professionals possess a comprehensive understanding of the market landscape, enabling them to offer you invaluable counsel tailored to your budgetary needs and lifestyle preferences.
However, it is imperative to exercise due diligence when engaging the services of an agent, verifying their licensure status and gauging their tenure and proficiency within the industry.
Carry out apartment inspection
With the help of your agent, carry out tours of properties within your designated price bracket, meticulously documenting your observations for future reference. Given the high number of residences to explore, it’s prudent to catalog each apartment’s distinguishing features through notes, photographs, or videos, facilitating recall amidst the influx of information. Purchase offers typically hinge on a comprehensive home inspection, aimed at discovering any structural irregularities or requisite repairs. Your real estate agent typically facilitates this inspection promptly upon the seller’s acceptance of your offer. Equip yourself with a checklist during property viewings, ensuring alignment between your housing requisites and the features on offer. Conscientiously scrutinize each residence, vigilantly probing for concealed deficiencies. Should the inspection unearth substantial material defects, this contingency clause affords you the latitude to renegotiate terms or rescind your offer.
In addition to the five steps above, negotiate given price of the apartment, and involve your lawyer in the purchase.
Buying an apartment in Lagos or any other part of Nigeria is a worthwhile venture that requires proper research and smart decision-making. However, you could make the process less stressful by contacting PWAN Stars for your apartment needs today. We offer some of the best real estate apartments at the most affordable prices in the market. You would be glad to you made us your choice today.
