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Category Archives: Investments

4 Essential Tips for First-Time Home Buyers in Nigeria

Buying a home in Nigeria or any other place in the world is a key decision. This is because it is not about your financial commitment; it also deals with your emotions, and psychology- because you’re about to spend hard-earned money. It can be challenging, as there seems to be so many tasks, demands or requirements involved in the process, and it’s your first time.

You are anxious and you sure don’t want to make a costly error. This article will serve as a guide for you, if you’re about to make your first purchase. You sure don’t want to spend your money on what you don’t like, or worse get duped. Below is an outline of 5 key tips, or things to consider if you will, before making your first purchase:

  1. Check your financial capability

This should be your primaryconcern; you sure can’t purchase your dream house if you don’t have the means or enough means to do that, now can you? So before hopping on to the website of a real estate company to scroll through available listings, and then find yourself mesmerized in the awesome wonder of an amazing house, do a critical audit of your finances.

You need to make sure that you don’t just have enough money to procure the house, but you also much more to manage the regular expenses required for running a home. So, when the audit is done, it will inform you of whether you’re financially muscular to go ahead with purchasing the house, or you need to chill a little. To have up to 6 months or more worth of home catering funds, you can do the following:

  • Start an emergency savings
  • Live on your means or below. Don’t spend money on unnecessary things, cut down your spending to only essentials.
  • Have a good credit if you hope to apply for a home loan. Having a good credit means having a history of paying bills on time.

2. Know your ideal kind of home

You won’t just walk out of your home one day or search through a real estate because you want to buy a house, what type of house exactly? There are many options available when it comes to purchasing a residential property; there is a duplex, a condo, a house with 2-4 units for more than one family, a normal single-family home, etc.  Each property has its own advantage and disadvantage depending on whichever you want to go for. So you need to decide home meets your description, and go for it.

3. Create a feature list for the house you want to purchase

After deciding what kind of structure your house will be, you need to have a list of features that will characterize where you stay – this is where emotions and psychology come in. so, while making a list, make sure to keep it flexible so it can be easily adjusted, you’re about to make one of the biggest purchase ever and so you need to make sure that whatever you go for meets your needs or wants as much as possible. Your list can vary from as large as the size of the house and the neighborhood, to the arrangement of your kitchen, and if you want to have a pool or not.

4. Get in touch with an Agent

Once you have sorted numbers 1-3 above, get in touch with a real estate agent. Hiring a real estate agent will save you unnecessary stress and time. These people already have an idea of the terrain; they know where best to look for your ideal home after you’ve given them the features, they will save you the stress of having to go through the stressful process of searching a house alone. So, in essence, they are skilled professionals who can help you navigate the tempest of owning a home. We deal in residential properties, and we’re always on ground to serve your property needs. If you’re looking to make your first purchase, you can contact us, we’re always ready and on ground to help. So, there you have it, 4 essential tips for first-time home buyers.

Difference Between Real Estate and Stock Investment

A vast majority are not aware of the fact that there is a difference between Real estate and Stock investment. A lot of people have invested in real estate and stocks respectively, but only a few can tell that there is a difference between them. Some people even argue which is better and which isn’t as they are solely concerned with the good returns their investments can get them, I mean, who doesn’t want good returns?

But just before you conclude on which is better and which isn’t, or which is riskier, it is better if we first discuss their differences, from which you can then choose your preference. That settled, we’ll be looking into the following areas:

  1. What is real estate?
  2. What is a stock investment?
  3. Differences between real estate and stock investments

What is real estate?

According to www.investopedia.com, real estate is property made up of land and the buildings on it, as well as the natural resources of the land including uncultivated flora and fauna, farmed crops and livestock, water, and any additional mineral deposits. So, real estate is largely beyond lands, it also refers to natural resources and it’s associating components. There are also types of real estate such as commercial real estate, industrial real estate, and residential real estate.

What is a stock investment?

Stock investments on the other hand refer to investing in part of a company that allows anyone to buy and sell on a stock exchange market on any other approved platform. Your investments thus serve as a share of what you own in that company, and it also stands as your entitlement to the assets and earnings of such company. In simple English, you invest in a company, as their stocks rise, so does your investment.

Differences between real estate and stock investments

Now that the definitions of both real estate and stocks have been defined, let’s get to the real deal: differences between real estate and stocks/stock investments. Here are some differences between real estate and stock investments:

  1. Real estate is a piece of land or property that has been procured for either personal use or for acquiring monetary gain, while stock investments simply refer to your cut in a company’s earnings.
  2. Stocks are relatively cheap, how much you invest depends on your objective. The stock price is volatile and the company’s financial performance has a direct effect on the price of the stock. So, whatever happens to the company’s stock happens to your money too. Real estate, on the other hand, is usually a one-time investment thing and it is determined by various factors such as the financial ability of the buyer, the size and amount of the property, the location of such property, the return on equity of that property and also the title document of the property.
  3. Real estate can span over for years as it is a long-term objective, but the stock investment is commonly short-term and it is dependent on the portfolio requirement, that is, the requirement of the investor.
  4. Real estate is less liquid. Hence, selling a property is relatively less easy as it is tied to many factors and legal processes. Stocks are very liquid as compared to real estate and they can be sold easily.
  5. Real estate does not in any way generate dividends, but if leased or sub-leased, it will generate an amount of rent regularly as agreed between the involved parties. Stocks generate dividends based on how well the finance of such company performs, and these dividends are not usually regular.
  6. Real estate owners are responsible for all the decisions they take which directly impacts the existence of the property, while a stock investment only makes the investor an owner when it comes to getting vote rights on diverse issues but cannot make decisions that involve the senior admins.
  7. The price of real estate doesn’t change anyhow, it changes gradually because it is affected by factors or happenings that influence the economy of a country such as unemployment, population, etc. The price of stocks on the other hand changes rapidly and every amount invested can make an interesting difference as they can be bought in bulk.
  8. Banks do not give out loans for stock investments, but you can receive loans for real estate transactions.
  9. If there is a need, companies can buy back their stocks from investors. But once a real estate property is sold, it cannot be bought back.

So here we have it, folks, some differences between real estate and stock investments. It is only advisable that before one delves into either investing in real estate or stocks, one should consider the risks involved and also study the performance rate of both industries in the past few months or years.