Commercial Real Estate Investing Lagos Nigeria - Free Commercial Property Investing Tips
The first obvious question is . . . What are the key factors to consider when it comes to commercial real estate investing?
2. Higher growth in sales value year on year and
3. More consistent rent payments by tenants occupying the facility
The truth is . . . commercial real estate often turn out to be properties in strategic locations. And since the locations they are situated are strategic, they attract good rental and sale value.
"Government magic" is a term that refers to facilities that the government has the financial power to provide.
For example, governments have the responsibility to . . .
If your commercial real estate investing strategy includes buying properties cheap in areas that do not already have these facilities, you stand a chance to reap a high return on your investment when government begins to provide these facilities.
Proximity To A Major Road
If your commercial real estate investing efforts eventually gets you to buy a property on a major road, a road that may eventually become an express road or a four to six lane road, be careful to understand the government regulation on distance of buildings from the road.
At one time, government required that buildings be at least 30 metres from a major road. If your building was closer to the road than that distance, you get a warning message from the federal or state government.
If you don't move your house, the government will help you move it with their caterpillars.
Looking at commercial real estate investing for properties on major routes?
Watch the distance of the house from the road!
The Payback Period
The payback period is the time it takes to recoup your investment on the commercial property you intend to buy.
Payback period for established locations are usually in the range of 20 - 30years whereas payback period for developing neighbourhoods can be as high as 60 - 70years if you build the house yourself.
Now, 60-70 years sound like a long time to recoup your commercial property investment. Perhaps you may even be dead by then
However, it is important to note that if your commercial real estate investing strategy is to buy cheap and sell high several years later, then you may have to live with this long period. (Further insights on this is discussed in the section for payback period).
The Land Title
Ideally, the land title should be a c of O. If it's not a C of O, then process the c of o with the Lagos state government.
If the land has a c of o in the name of the previous property owner, then you need to register the change of title with the state government.
Want to protect the integrity and certainty of your commercial property investing investment?
Get a C of O.