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  • Writer's pictureAbdulgafar Asimi

Know What Property Is Right For You

Knowing your market is highly valuable, but merely knowing the market isn’t enough. You also need to know the best type of property based on your goals. Consider two things: objectives and risk. What are your goals and objectives and how much risk are you comfortable taking on? It’s important to know these things because it will help guide you with choosing your sub-market. Once you’ve done your market research and know what your goals are (along with risk tolerance), you will be better able to determine the best area to help you achieve your goals. For example, if I have NGN60,000,000, should I buy one house that’s newer and in a growing area of town – or should I buy three older homes in more challenging areas for NGN20,000,000 each? What will the average rent be on these different houses? What are the average maintenance costs per year and the average length of tenancy for these areas? If I’m a low-risk investor, then I may be more comfortable taking a little bit less return on a nicer home. I may believe that I will attract a tenant who has a stable income and may be less affected by life events as well as long-term appreciation. Keep in mind that if your tenant decides to move, you’ll have a vacant property that will not be producing any income. If I’m willing to take on more risk, I might buy three older properties with higher return potential. The houses will be older and may need more maintenance over time. But there is a better chance of having at least one or two properties occupied at all times and generating revenue. You may decide that government-subsidized properties are right for you. However, you will have your own set of issues to address, like passing annual inspections.  The bottom line: Understand your goals and how much risk you’re comfortable assuming to achieve those goals. Only then will you be better prepared to determine the rental properties you should be owning. 

For guidance on what property to buy and where to buy them within Lagos and it's environ... We can be of help, contact us at AsgafNG,  09098628043

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