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Friday, 27 July 2012

INVESTMENT PROCESSES IN REAL ESTATE




 Investments can be a fresh development (i.e. virgin land). This type of property investment has been found to command the lowest capital outlay and most times the highest capital appreciation: or purchasing already existing property, which can be enhanced to command current rent and capital value. It could also be to fill a prospective emerging demand. The investor who does not wish to be involved in the stress of physical building, development and management can invest by buying a completed property although at a high value.

Steps to take before making that real estate investment;

  • Study and evaluate the value of the property, its location, neighborhood, use, encumbrances, physical state and any incidental cost pursuant to its acquisition.

  • Carry out a feasibility study, viability, encumbrances and any cost incidental to its acquisition.

  • A very important step to consider is the engagement of consultants. Real Estate professional advisors are required almost at every stage for sound advice.

  • All interests, titles, ownership, registration and documentation must be easily verifiable.



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