A great way to keep your investment sparkling safe without sacrificing all your hard-earned money is to hire a real estate company to grow your investment for higher returns.
And why should I?
Doing so will save your money and the risk of investing in real estate.
But one aspect of buying from a real estate company seems to confuse even the savviest of home and land buyers.
According to the research done by Eystone, over 55% of buyers don’t trust buying property from a real estate company.
Should you invest your money in the home and land ownership?
And if so?
The question is: How much?
Well, there’s no definite answer to this question, there are several facts to consider when determining whether to invest in real estate and what is the returns?
To help you ease confusion:
In this guide, I’ll walk you through what you need to know about whether to buy land from a real estate company or not.
In this chapter, I’ll help you get handle tips for investing in real estate.
So if you’re new to buying land from a real estate company, or want to make sure you’re on the right track, you’ll love this actionable guide.
Then, in later chapters, I’ll cover the advanced process of buying land and case studies.
But for now, let’s cover the basic process of buying property from a real estate company.
Why is buying land from a real estate company important?
Real estate companies are quickly playing a savvy role in front of buyers today.
It’s no exaggeration to say that 2022 will be “the year of real estate companies” in Nigeria.
With that, let’s quickly look at some quick real estate statistics done by eystone and others:
– About 14% of buyers buy their land themselves in Nigeria
- Millennials make up approximately 20% of home buyers.
- Millennials make up approximately 40% of the landowners.
- Last year, 25% of residential property has been sold for the maximum price or a discount, not more than 5% in Nigeria.
- More than 300,000 new lands were sold in Nigeria(Eystone).
- The total number of lands that were sold in Nigeria keeps increasing by 30,000 per 3 months(Eystone).
- More than 2 million real estate investors in Nigeria…On average, they make 300 million Nairas per year(Eystone).
- About over 40 million housing units in Nigeria in the year 2022(Eystone).
- 300% appreciation value rate(Vinesrealtyng)
- More than 50,000 real estate investors are in Abuja alone(Eystone).
- The average sales price of a single home in Nigeria(2022): 40 million(Eystone))
- The average sales price of residential or commercial land in Nigeria(2022): 2 million
- 22% of home and land buyers are using real estate companies to help them make decisions about what property to buy and what location to invest in.
- 30% of consumers prefer to buy property directly from a real estate company than buying from omolile.
- 70% of consumers prefer to watch a video about a property than read a property listing description.
- 50% of real estate buyers look for a video before visiting for inspection.
- And 65% of real estate investors state that inspection has helped them invest in the right location.
- 27 is the median age of first-time homebuyers in Lagos. Even if you do anything else for starters, buy some land(Omapcreations).
Why should I buy land from a real estate firm?
Just as other business model does, real estate company always appreciate clients and reward them for their hard-earned money.
When it comes to buying property from a real estate company, there are times when a deeper understanding of investing in real estate may be more appreciated.
Factors such as:
- The loyalty of the company
- Social proofs
- Customer experience
- Investment policy
- State of the property
- Quality of the property
- Payment structure
All that contributes to whether or not you should invest with a real estate company.
For example, take eystone:
We always have a payment structure and it’s as follows:
Take a look:
All our properties are verified(approved by the government), some titled(Excision).
This makes it authentic to our buyers.
Each plot of land is both 600sqm and 300sqm, enough for you to own the best mansion you desire.
The payment structure? It’s as follows:
- Outright payment (0 – 2 months) – 7,000,000
- 3 months plan – 7,500,000 Nairas
- 6 months plan – 8,000,000 Nairas
- Corner plot and commercial plot attract a 40% surcharge.
The payment structure for (300sqm) are as follows:
- Outright payment (0 – 2 months) – 3,500,000 Nairas
- 3 months – 4,000,000 Nairas
- 6 months plan – 4,500,000 Nairas
- Corner plot 40% surcharge.
What is the benefit of buying land from a real estate company?
In addition to some real estate company policies, you may want to consider the state of your financial status when deciding whether to buy land or not.
However, real estate companies assure you that you’ve great returns on your investment.
And they also help to keep your investment safe.
Which is a good buy.
So if you have a difficult task like buying land or investing in real estate.
And you know that if you truly want to invest, you may decide to hire a real estate company even if you usually wouldn’t.
It’s just for a reason.
They will educate you better on what type of market you should invest in.
The result? You are going to see great returns.
How long after buying land do I have to build?
Well, a real estate development company like eystone can help you map that out.
If you intend to build.
In most cases, there is no definite answer.
Because it depends on your market.
For example, if you want to buy and hold.
Then you don’t necessarily need to think about how to build but how you can make your investment appreciate faster.
Do you get that?
So it depends on where your market stand.
Why more consumers are going all-in with real estate firms?
Not surprisingly, more consumers are using real estate companies as part to generate higher returns.
Here’s a quick fact:
- 70% of buyers now see 40% of returns in the first 8 months of buying from a real estate company.
- 76% of buyers state that they’re happy with the return on investment and customer experience that they get from real estate companies.
And maybe the most interesting fact of all…
- 90% of buyers report that real estate company has helped them know the right market to invest in.
Back in the day, real estate companies were a concept that consumers drop like a dead stone.
But now, all that is changing.
– More consumers are going all-in with real estate companies.
Well, my business is a living testimony of this.
The first land I bought was from a real estate company.
Then I was just starting out. I didn’t have any fundamentals of real estate.
So I knew I have to hire a real estate company to educate me better.
I didn’t contact any real estate agent or realtor.
Because it was my first investment, I was super careful.
Fortunately, it was my best decision ever.
(Even though, as you can see, it looks like the worst decision) – many people never trusted them.
Fast forward to today, and what I’ve invested for.
I can easily say, I’ve built a multi-million investment in real estate.
- I own my office
- I have a net worth of over hundreds of million figure
- And I live in a home worth over 80 million Nairas.
Now, many investors look up to me in order to help them do one thing – amass wealth.
I can’t believe how successful I have become.
The question is:
Are you willing to overcome the fears of what other people say?
You know, if you can conquer your first fear, you can conquer all fear.
And, unlike my first investment which only generate a 20% increase in returns, over time I started to become even better.
According to our recent analysis, 80% of first buyers significantly see 30% returns in the first 6 months in states like Lagos and Abuja.
Real estate agent vs realtor vs real estate company?
The first thing to consider is the state of loyalty of the real estate company that you are about to work with.
Are you hiring a realtor or real estate agent that works under a real estate firm or are you turning to a larger real estate company with working employees?
Realtors and real estate agents? are individual agents who are able to set you up to a larger real estate firm where you can easily buy a good property with verified documents.
- 40% of buyers use real estate agents and realtors to buy a property
To buy or not to buy? where do your chances stand?
Buying directly from a real estate company is never mandatory so that you don’t ever have to feel nervous to give to try.
But, as for eystone development.
We usually appreciate when a client is ready to learn and grow we do recognize that as a job well-done.
Working with our real estate brand provides you with top-notch security for your investment.
You have the best chances of higher returns.
And the quality of decisions in mind will help you navigate or determine where your best chances of investment lie for higher returns.
- Best selling location
- Mode of market
And is what we do most and what we’re best at.
How much to buy a plot of land?
If you want to buy a plot of land.
The cost? it actually ranges:
Depending on the portfolio of the area and the document attached to the land.
Like for Eystone:
…Our property is currently selling for:
- 2 million – (a full plot of land) – Epe Lagos
- 7 million – (a full plot of land) – Ibeju, Lekki near Dangote refinery, and Eleko beach.
So if you’re now thinking about whether to buy land and what you should budget, there’s still the question of how much?
This is going to depend largely on the location you want to invest in.
Note: You don’t have to spend your budget once, you can still pay in installments.
If you think paying once isn’t an easy stroll for you.
Can you refund your money from a real estate company?
Of course, a big yes.
The last thing you might be wondering is how can you refund your money from a real estate company?
If eventually, you can’t meet up to the expected payment date.
Refunding is the most preferred option among investors especially when they can’t meet up to the expected date.
This is another way, we show you appreciation.
Note: Real estate companies always have their percentage pocketed.
And that’s right.
Should I use a real estate agent or realtor to buy land?
Of course, a big yes.
Some real estate companies partner with real estate agents or realtors.
And they are paid a commission fee ranging from 3% – to 15%.
Still, other companies may have a policy that does not allow realtors to work with them.
If you are ever unsure of the relationship of the realtor with the real estate company there’s no harm in asking.
Real estate companies will provide you guidance on what other customers have done and how successful they use real estate agents to buy land and see great returns.
How can I buy land without a realtor?
To understand that:
First, you should consider what type of market fit your portfolio.
Also, the quality of the property you want to buy before you decide whether to drop your cash or not.
If the real estate company provides a substandard answer to your needs you may go ahead to buy from them.
With Eystone development we can work that out for you.
- Know your market
If you can figure out your market the rest is assured to work perfectly well with great returns.
Now that you know what matters when buying land from a real estate company in Nigeria.
There’re top real estate companies in Lagos like eystone that will help you figure out the best way to invest.
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