Must Do's before buying into an Estate Property.

In recent times, people prefer buying Properties in an Estate especially for Investment purposes and maybe less stress it takes in acquiring a Property there, 

security, some people because for a Nigerian, there's an aura of goodness that comes with telling people you live inside an Estate.

Well, different reasons and purposes.

I want to share with you some "do's" before finalizing your transaction for an Estate Property.

MoU (Contract Agreement): This is a document stating the nature of contract/business you're entering with the Estate Company.  

In this document, you'll see the Estate Laws, purpose, building plan, plot number if it's a land majorly.

It's important you read through the agreements and know if they go your way and if you agree with the terms contained in the MoU. 

Most of the things and terms to be discussed below fall under this level.

2. Building Plan: Make sure you get to know the plan approved, especially when you're buying a land in an Estate. 

Some Estates, contain both Residential and Commercial Lands. I advice that you know the type you're buying into, if Residential, know the building type as we know, Estates most likely have same building plan and type lined up in it's streets. 

There's an area for 4,5 bedrooms detached houses, semi detached, apartments, terraces, bungalows, etc and it's a must that you allign with this. 

Why? This is because, the Estate when launched, submits the Estate Layout to the States Town Planning and in Abuja, with the Development Control and it's necessary for them to go by the approved building designs for every location.

Payment Plan (s): This is also a feature of the Contract Agreement. 

Most Estates have payment plans aside the outright payment method for Investors or clients. 

Which may range from 3 months to 24 months or more plan. There are other stuff to search for in the Contract Agreement such as 

default charge for either of the parties, such as interest to be paid if you failed to complete your payment after your time has elapsed. 

Also note that outright purchase is always cheaper compared to other means of payment.

Reasons for the flexible payments 

plan is to make those who can't afford the offer at the moment be able to key in and finish payments in a stipulated time.

4. Terms of Allocation: Allocation is always done when you've either completed your payment or reached a certain level 

for the Property. 

Also, note that Allocation is done first come (complete payment), first served. 

5. Ancillary (Extra) Fees: Buying into an Estate, doesn't just end with paying for the Property in question. 

There are other dues one has to pay. Meanwhile, not all Estates demand you pay for some of the fees. 

Some of these fees you should know you may be paying include; allocation fees, survey fees, development fees, legal fees, VAT.

If in a serviced Estate, you pay for waste management, water; when the water is centralized, and also note most of the fees is when you're already a resident 

of the Estate and or any other fees which would be spelt out in the Contract Agreement.

Well, I'll always advice that you make out time to cross check the Contract Agreement and make sure you agree to all the requirements before signing and ask questions when necessary; if you find anything strange.

Also note that it isn't necessary to buy a Property because you want to live there or maybe you don't live near rather buy Properties for Investment purposes. 

Real Estate appreciates and can never depreciate. People live Overseas or  who've never been to Abuja, Lagos and other areas have Properties there and solely for Investment purpose. 

The best time to buy a Land was yesterday and would still be cool buying today. 

Start Land Banking if you don't have money to buy Investment   buildings, etc.

Right Investment is key!

ED Ekanem

Your Real Estate Investment Coach.