It is an excellent idea to purchase a commercial property to start a business. However, it is critical to think about a few vital factors before making any purchase decision. They must all be carefully reviewed, and none should be overlooked because you believe it isn’t necessary or won’t have an impact on your organization.
Commercial Property for Sale in Nigeria is even more sophisticated than residential property sales, with far more significant gains and losses. Deals demand more capital and can become very complicated if not handled properly. To begin commercial investing, you’ll need both information and confidence in what you’re doing.
So here are some questions to ask the commercial real estate agent before you sign the dotted lines and search for the Commercial Property for Sale in Nigeria-
Examine the Neighborhood
Location as well the neighborhood is critical if you are particularly searching for Houses for Sale in Lagos Nigeria since certain regions may be more impacted by the economic downturn than others, and a commercial property generates income through two sources: rent and capital appreciation. Both of these things are incredibly reliant on where you are.
How much space is available?
The amount of space offered will decide whether or not the commercial space is suitable for your company. When you choose a place based on the number of employees you expect to have in a year, you may quickly overrun it before the lease expires. Commercial experts encourage business owners to go for more space rather than less since any extra length can usually be subleased later.
What is the landlord’s name, and how long does the lease last?
You must know who your lessor is to know who you are dealing with and how long the lease will last. In today’s Nigeria, many con artists claim to be the owners of particular assets to defraud innocent people, so be cautious. To keep vacancies to a minimum, landlords strive to lock tenants to the most extended leases possible. Commercial leases often last three to ten years, and the period should be negotiable with the landlord.
How much is the rent, and how frequently will it be raised?
Before signing a lease contract, you should inquire about the lease cost and how frequently it is expected to increase. Rent is a reasonably little overhead, but rent costs in Nigeria have recently become so volatile that business owners struggle to keep up. Asking this question helps you prepare before you leap.
Can you extend the contract?
Once your contract ends, the lessor is under no legal obligation to give you that space unless both parties agree to some renewal formula and have a clause that guarantees you first rights to freedom when your lease expires.
Who foots the bill for improvements?
In Nigeria, tenants pay for improvements almost always, particularly when the workplace needs to be renovated. It’s a fine idea to know ahead of time what significant improvement the landlord is willing to make and what the tenant will be responsible for.
What is the state of the electricity supply?
The power distribution situation in Nigeria has gone bankrupt many businesses, so you must inquire about the state of the electricity in the building so that your company is not powered by a generator all day.
It is critical to have a plan in mind when purchasing a home in Nigeria. This indicates that you are buying the property for commercial purposes. It’s one of the most innovative strategies to get quick returns on your money.
You can elect to purchase a structure and rent it out. This guarantees a consistent stream of money. This is one of the numerous reasons people choose to invest in real estate to diversify their income streams. Whatever your reason for purchasing a home is, you should keep a few aspects in mind, such as how safe the surroundings are and how close the property is to essential utilities.
Potential of Gratitude
While houses do tend to appreciate with time, a suitable location is critical. Choosing a place, whatever it is, should be strategic. Inquire around the community and establish a prediction of future resale value based on previous trends.
Security is essential–
It must be taken into account when purchasing a home. Investigate whether the government or the community where the property is located has procedures for dealing with security concerns and whether the atmosphere is pleasant or subject to persecution by the underworld.
The most significant point on this list is undoubtedly documentation.
- Don’t make the mistake of purchasing a property without the correct paperwork. It would make no difference if the land were sold to you by your best childhood friend or family. Treat property purchases and sales like a business transaction; don’t be swayed by emotions. You must ensure that the individual selling has the authority to sell, and they must be able to prove it.
- The Certificate of Occupancy (C of O), the Survey Plan, the Tax Clearance Certificate, the Contract of Sale, the Receipt, the Deed of Assignment, and other documents will be required. Many people, however, have been duped into accepting fraudulent documents because they are unable to distinguish between genuine and fake documents.
- Another thing to keep in mind is to pay through a bank transaction that can be tracked. When buying property in Nigeria, never pay cash to have proof of payment if a problem arises, and have your lawyer write a purchase receipt for additional evidence. Keep a record of every transaction throughout the property purchase and obtain the required papers before paying.
In conclusion, we say purchasing commercial property in Nigeria requires great patience. The final thing you need is to get involved in a property dispute because you bought it from the incorrect person or purchased land prone to flooding. Be patient, remember what you’ve read here, conduct a more thorough study, arm yourself with all the necessary information, and enlist the help of professionals. You’ll be on solid ground when purchasing your home. You can buy Houses for Sale in Lagos Nigeria, with the help of u-Snapp. In this online marketplace, you can buy sell items from the categories of houses to smartphones and cars, and you can use this app to locate a commercial property with verified users.