• Sunday, June 23, 2024
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BusinessDay

Here’s how investors can guard against pitfalls in real estate investment

real estate investment

For a successful and sustainable investment in real estate, investors must take into consideration some basic legal, environmental and aesthetic elements as part of ways to guard against investment pitfalls, Periwinkle Residences Limited, a real estate investment and development firm, has advised.

Developers are also to consider those elements before engaging in real estate investment in Lagos State specifically so as to run away from building collapse and fraudulent land speculators.

Periwinkle Residences, in a statement titled ‘Do Not Buy a New Home Before Reading This Shocking Free Report’ which BusinessDay obtained at the weekend, explained that, in terms of environment, most parts of Lagos have soft soil such that it is important to have a soil report showing its load-bearing capacity and, depending on the soil type, the foundation has to be either pile or raft.

“Prospective developers and investors should find out if their new home has the required government approvals and other relevant permits. If it does, they need also to ask what the pedigree of the building contractor is as well as the quality of concrete mix intended for use,” Chiedu Nweke, the company’s managing director, advised.

Nweke added that a prospective buyer must insist to know what kind of block was used-concrete or sand mixed, whether the roof profiles used are wood or steel, the type of roofing sheets used as well as the headroom of his new home. The grade and sizes of tiles used for the new home are also pertinent to the aesthetic quality of the new home.

To save the environment and control pollution, he stated that a purchaser must know the quality of water and sewage pipes used, the source and pressure of the water supply, what type of sewage collection system was provided, and whether the drainage system is open or covered, noting also that the Lagos State government has banned the sinking of soak-aways.

He advised developers to be conscious of the security requirements of their immediate environments, enjoining them to find out if their new homes are in a gated community or accessible to motorcycles, tricycles, criminals and miscreants. 24-hours power supply and good road access must also be put into consideration before investing.

“Does your new neighbourhood have good landscaping? What is the title of your new home or is it a JV arrangement”, he queried, adding that in all of these, the overriding concern to the developer should primarily be the location.

He insisted that any developer who knows his onion must be able to know if the location appreciates at price or not to enable him to determine whether he is expecting to make a good Return on Investment (RoI).