Over the years, real estate investment has been a means of livelihood of many individuals across the country and a very high profitable means of investment which have helped millions of individuals attain stable financial balance and equally have legacy to pass to generations unborn. If you have a property that you wish to sell the first question to ask yourself is how can I determine the price of a property?
It is a good means of investment and it equally has minimal business risk like every other businesses one can ever think of venturing into but obviously yields great returns over years even without putting much work and energy. In this article, we will be looking at how to determine the price of a property
In Nigeria, many factors affect real estate from one state to another. These factors can determine your profit and loss when investing in real estate. Even though the loss can be minimized, thus ; consider the following before investing in any real estate.
Location is very important in determining the success of your real estate investment. In Nigeria, there are many states and different settings to the location. Real property in an urban area will influence higher prices than in rural ones. But considering investing in rural may take longer period to yield good returns.
The population of people in a location mostly determines the price of a property. When there is a high demand for property by the people, there will be a higher price.
The higher the population, the higher the scarcity rate of landed property in the location. The scarcity rate leads to more income for investors in that same location.
Another basic thing that affects real estate in any state in Nigeria is infrastructure and property development.
Infrastructural development in a location includes good power supply, road development, the number of companies, and other major infrastructure. Again, an area might not be so developed yet but might show good promise for development in the nearest future. This would shift the prices up significantly when any property in the area is placed on the market.
The current state of the real estate market can help determine the asking price. For example, if there’s high demand from buyers, you can set a higher price.
The inflation rate in a location can affect the cost price of everything in that location. High product and service costs in a location will also affect the price of real estate in that location. Inflation always benefits real estate developers and agents.
Available or upcoming amenities are another major factor affecting real estate in Nigeria. This has served as one of the major leverages for real estate in Lagos, Nigeria over years.
Renovation is one of the major factors that increase the value of real estate in any location. Benin is an ancient City and most of it houses are quite old, renovating will make you sell your properties fast. You can earn more profit in real estate in Benin City by doing some simple renovations to an existing property.
This is the last factor affecting real estate on this list. The type and style of real property will determine how people will bid for it. Building a relaxation center near a beach will cost more than building a gas station or office. So, the type and style are important based on the location.
In our findings so far we advise you pay attention to the above factors for best decisions in real estate investment.
You can also read How to Find the Best Neighborhood for Your Family
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