- August 12, 2021
- Posted by: Temitayo Omodehin
- Category: Consultation, Real Estate
If you are a beginner when it comes to real estate investment or a seasoned veteran looking to expand your portfolio, there are some things you need to know about investing in Yaba real estate. Whether it is land, houses, or commercial spaces, there are some hidden costs you have to consider.
Given the burgeoning real estate market in Yaba, there are many opportunities for real estate investors to capitalize on, especially in highly populated regions around financial and educational districts. However, there are some hidden costs particular to the Yaba/Surulere region.
WHY THE YABA REGION IS ATTRACTIVE TO INVESTORS
Yaba real estate is particularly attractive to new and old investors due to the high turnaround value on properties on offer. The reasons for this are as follows:
1)Its proximity to the island and other parts of the mainland. Yaba is ideally suited for individuals who work on the island. This is because the region has more affordable housing options for workers.
2)The region is also dense with a constantly increasing population
3) Yaba is highly accessible. Its bustling markets and multiple routes connecting it to other important regions in Lagos like Ikeja and VI serve as a hub for financial activity.
4) Yaba is one of the go-to places for tech start-ups in Lagos. Many start-ups like Hotels.ng, Andela, and Cc-Hub are situated in Yaba, drawing highly skilled, upwardly mobile labor.
5)The most crucial factor is the existence of educational and financial institutions that command a high flux of people in and out of the region. The University of Lagos, for example, creates a yearly influx of thousands of hopeful students who flood the area with requests for housing and accommodations. As a result, student housing has blossomed into a thriving industry in the region.
HIDDEN COSTS ASSOCIATED WITH YABA REAL ESTATE
With all that said, what are the hidden costs investors need to be aware of?
1. Structural Renovation
The Yaba region is one of the few rustic areas that contains the relics of the post-colonial area. While these buildings hold historical value, this means structures may be older than they appear to investors. It is not uncommon for landowners to paint over buildings to hide water damage and other blemishes. So investors should expect to conduct minor to major renovation on any acquired property before putting it to use.
2. Outstanding Utility Payment
Another cost investors have to be wary of is outstanding utility payments on acquired property. It is essential to inquire about any unpaid utility bills before concluding transactions on a property to avoid being slammed with unexpected expenses.
3. Developmental Fees
Depending on the type of development an investor wishes to implement, private security is a cost that may come up. Developments like hostels for students, service apartments, and office spaces will require security. The cost of security and other axillary items are often categorized under developmental fees. Other fees that may be incurred are drainage and sewer maintenance fees.
The best way to avoid dealing with these issues is to liaison with reputable real estate investment firms when investing in the region. These agencies will conduct all due diligence to connect you to hassle-free property in lucrative areas. We recommend that investors partner with real estate agencies with years of experience and a great track record.
If you are interested in investing in Yaba real estate and wish to avoid these pitfalls, contact Catalyst Business Consult on
+234 8162726997, +234 8120353382
or at @olawalecatalyst on Instagram