I wrote a two-part series on real estate which begins here. I would like to bring a few things to your memory.
1. Your budget determines the type of real estate you buy – whether virgin land or commercial developments; rural or urban.
2. Never buy real estate from individuals unless you absolutely trust them or you are an experienced investor. Instead, buy from a registered realtor or real estate company with a fixed address.
3. Always get a lawyer to review your documentation or to do due diligence at the relevant government agencies. Lawyers are not as expensive as you think. Their fees are typically percentage based.
4. Buy real estate in a place you want to live in or if not, as an investment that will appreciate over time. By the time you start earning enough to live where you prefer, your investment in an undesirable place would have appreciated. You can then sell it and use the proceeds as a seed investment towards what you really want.
5. A seller is only obliged to give you a deed of assignment or allocation letter (if it’s government). You need to pay for your Governor’s consent and individual survey. If you buy through a company, they can facilitate this for you at an additional cost.
6. If you buy real estate in a larger development, you are obliged to pay a development levy as your contribution to fencing, security and utilities. Think of it as paying dues to an estate association.
7. Real estate is not as expensive as you think. There are affordable options in more rural locations.
Real estate isn't as expensive as you think. There are options for every budget. Click To Tweet