As an aspiring investor or even one with experience, you must be aware that buying a property in different locations require different levels of information. All of these questions are to inform your decision making and ensure you get the best return on investment.
Some of the few questions you should ask before buying a property are:
1. Age of the building
This could be good and it could be bad. Some old buildings with history could command more value and have higher quality materials. On the flip side, a buildings age could be an indication that such a property is due for renovation or demolition, or the property is new and in great condition.
2. Type and state of the foundation.
This is very relevant information and this will give you an idea of the building's quality and age. One with a weak or faulty foundation is bad news for investing and should be considered strongly.
3. Source of Power and Water Supply.
A good investor would want to know the source of water and power supply to determine if it is reliable and of good quality. Especially if the investor wants to use the property himself.
4. New or newly Renovated.
Information like this points once again to the age as well as the lifecycle of the property at its current state. It would also be vital to know this for the sake of the management of the property.
5. Actual Floor Dimension.
Depending on the location, the floor dimension would be made available for the purpose of land registration and other documentation. This would also determine the cost of lettable floor space in the case of commercial buildings.
6. Roof type and material
Asking this question may feel irrelevant but weather conditions are the greatest tests of the strength and quality of a building's roof. So the investor will want to know the typr of roof used and material to determine the quality and worthiness of the investment.
7. Serviced or Un-serviced.
In determining the price of a particular property, the investor could use this information as a gauge for the price. This means a serviced building would command more than an un-serviced one.
8. Facility Management Provider & Charges.
Purchasing a property, especially in a shared compound would require management services. You would as an investor want to know if such services are being offered and the accompanying cost. In order to determine the total value of purchasing the property.
9. Occupancy Levels in the Block or Neighbourhood.
When seeking to invest in properties that yield rental income, vital information would be to determine the occupancy rate of a block or neighbourhood over a period of time. This would inform your decision on the viability of that particular property.
10. Security in the property & Neighbourhood.
This is probably one of the most important factors prospective investors should take into consideration when buying a property. If you intend to sell or lease the property, your success would also be dependent on how safe the property and neighbourhood is. This is one of the reasons why exclusive neighbourhoods command more value than others.
Now that you have been equipped with some knowledge on questions to ask when acquiring a property, what would be your next move?
Seek professional help from experienced investors and property managers like us here at A.F. Olowokure and Associates.