Why due diligence is necessary in real estate investment
Unarguably, real estate is the best investment asset class in Nigeria today, but that does not detract from the fact that investment in this asset is not a get-rich-quick scheme and that, like other good ventures, it comes with a lot of risks which can, however, be managed when the investor is sufficiently armed with the right information and the right advice from the right partners.
Though capital intensive, decisions on buying, selling, leasing or investing in real estate are generally taken for granted and, most of the time, the consequences are grave with incalculable losses or damage.
The importance of having a thorough due diligence before embarking on any real estate transaction cannot, therefore be over-emphasised, but it needs be pointed out that this can make or break an investment.
Real estate vendors or marketers usually come with fine prints and lengthy documents that prospective buyers/investors find cumbersome and tedious. These same prints and documents can turn an astute investor to a property loser in a matter of seconds.
Recently, the Lagos State government in an effort to sanitize the environment, commenced the demolition of illegal structures erected without compliance to construction regulations. Most occupiers of such structures, mostly small business owners and entrepreneurs, suffered losses including the loss of their properties and businesses.
Similarly, the state government, not too long ago, demolished all structures erected under high tension wires or power lines. Quite a good number of individuals and traders lost their lifetime investments.
Again, a good number of people have, ignorantly, bought property from estates developed on government-acquired area or contentious family land only to lose them after they have developed the property and are living in them. Some have bought from scammers, fraudsters or speculators whose sole aim is to collect money from unsuspecting buyers and run away with same.
These unfortunate incidents are those that could have been easily avoided if proper due diligence was done.
Experts are of the view that many of the things that go wrong with real estate have to do with lack of due diligence on the developer, title, the agent, contractor etc and, to avoid falling prey to such transactions, they advise that buyers/investors should engage or invest through reputable professionals.
Professionals or reputable real estate marketers, advisors or consultants generally guide prospective buyers or investors on why, when, how and where to invest because they know and believe that there are reasons why somebody has to commit money into real estate.
Also, they guide the investor on what to look out for in an area of interest and how to go about it, just as they offer guidance on the best time making investment decision is not only appropriate, but also rewarding/profitable.
For investors or home buyers , there is a residential development coming up in Victoria Island in Lagos in which they could commit cash to. It is known as Eden Heights which is not just another luxury building but one that offers 1,2,3,4 bedroom apartments and 5-bedroom penthouses for stress-free living.
Eden Heights has been developed as a 5-star hotel apartment building with luxury lifestyle amenities different from anything on offer in Lagos today. It has a comprehensive leisure center called ‘club active’ with a 250 square meter gym that includes a dance/aerobics hall, 220 square meter Rock spa with steam , sauna, massage rooms and beauty treatment areas to pamper members.
It also has a suspended infinity pool, a tennis court and a TV lounge. It promises lifestyle programmes in the club active to cater for different needs like weight loss, strength training, nutritional programmes and other amenities to promote a luxury and healthy lifestyle.
CHUKA UROKO