You have heard it time and again that Real Estate Investing beyond being lucrative in terms of ROI when done correctly, but also happens to be one of the safest way to invest with a guaranteed hedge against inflation and currency devaluation. But then, not all properties are created equal. While some generate steady income and appreciate over time, others can become liabilities disguised as opportunities. The difference often lies in the investor’s ability to spot a good real estate investment property, one with strong potential for returns, growth, and low risk.
If you are looking to make your first Real Estate purchase as an investor or expand your portfolio, understanding how to identify promising investment properties is a crucial skill that protects your capital and secures your future. So in this article, we would cover some of the things to look out for in a good Real Estate Investment.
1. Location, Location, Location, then Maybe Location again!
Location is the most critical factor in real estate investment. A good property in a poor location will struggle to yield returns, while a modest property in a prime location can turn into a goldmine.
When evaluating location, consider:
- Proximity to Employment Hubs: Areas close to business districts, commercial centers, or major employers attract working-class tenants and buyers.
- Accessibility and Road Network: Good roads, public transportation, and easy access to major highways make a location more desirable.
- Social Infrastructure: Presence of schools, hospitals, shopping centers, places of worship, and recreational facilities increases the livability of an area.
- Future Development Plans: Locations within the development path of a city are bound to appreciate over time as infrastructure expands.
A simple question to ask is: Would I want to live here if I had other options?
2. Strong and Predictable Return on Investment (ROI)
A good investment property should yield a strong return, whether through rental income, value appreciation, or both. Investors should:
- Evaluate Rental Demand: Is there a constant demand for rentals in that area? Are properties in the neighborhood experiencing long vacancies?
- Study Property Appreciation Trends: Look into historical price growth for the area. Properties in rapidly developing neighborhoods often see fast value increases.
- Understand Yield Calculations: For rental properties, calculate your rental yield by dividing the annual rental income by the property’s cost (including renovations and legal fees). Anything above 6–8% in Nigeria is considered a strong yield.
Investing without evaluating ROI is like driving blindfolded, it’s risky and reckless.
3. Verified Title and Legal Clarity
Even if a property is in a perfect location, without proper documentation, it is not worth the risk. Always ensure:
- The Title is Valid and Verifiable: Titles such as Certificate of Occupancy (C of O), Governor’s Consent, Registered Survey, Building Approval plan and Deed of Assignment.
- Freedom from Disputes: Avoid properties involved in land disputes, family feuds, or communal conflicts.
- Proper Transfer Process: A clean chain of ownership should be traceable, and the seller must have the legal authority to sell the property.
Due diligence by a property lawyer is non-negotiable. It may cost a little upfront but can save you millions in the future.
4. Favorable Market Trends
Good investment decisions are based not only on what is happening today but what is likely to happen tomorrow. Investors should monitor:
- Urban Expansion Patterns: Areas like Ajah, Epe, and Ogombo have seen tremendous growth due to spillover from overcrowded Lagos Island locations.
- Government Policies and Zoning Laws: Projects such as the Lekki-Epe Expressway expansion, Fourth Mainland Bridge, or Special Economic Zones can dramatically increase land value.
- Market Stability: Some locations are speculative bubbles, while others have consistent, steady growth. Understanding this distinction is key to long-term success.
Smart investors analyze trends.
5. Low Maintenance and Renovation Cost
A property that looks like a bargain may become a financial sinkhole if it requires extensive repairs. Good investment properties are typically:
- Structurally Sound: No major cracks, water damage, or foundational issues.
- Modern or Easily Upgradeable: Properties built with standard materials and layouts that allow for easy renovations or upgrades.
- Properly Tenanted (If Applicable): For already-tenanted properties, ensure rent is being paid consistently and tenants are not in breach of agreements.
Budget for renovations, but don’t buy a liability in the name of potential.
6. Affordability and Financing Options
Affordability doesn’t mean cheap. It means the property fits your budget and financial goals.
- Buy Within Your Means: Over-leveraging or taking high-interest loans for property purchases can create unnecessary pressure.
- Flexible Payment Plans: Developers who offer installment plans help reduce your financial burden.
- Resale Liquidity: In case you need to exit the investment, how easily can you sell the property?
A good investment is one you can afford to buy, manage, and sell.
7. Reputable Developer or Agent
In Nigeria, fraudulent property schemes are unfortunately common. Buying from or through a credible developer or real estate company significantly reduces the risk.
Check for:
- Track Record: What other projects has the developer delivered?
- Transparency: Are the terms of sale clear? Are there hidden fees or charges?
- Customer Reviews and Testimonials: What are other buyers saying about their experience?
An agent who doesn’t pressure you but educates you is a sign of professionalism.
8. Exit Strategy and Market Liquidity
Good investments provide flexibility. Ask yourself:
- Can I flip this property for profit if I need to?
- Would tenants or other buyers be interested in this area 5 years from now?
- Is this location investor-friendly or end-user-focused?
Always plan with the end in mind.
Not all properties are good investments, and in real estate, a mistake can cost millions. Spotting a good investment property requires a strategic combination of market research, legal due diligence, financial planning, and professional guidanc
The good news is, you don’t have to do it alone.
At Geoponts Properties, we don’t just sell properties, we guide you into investments that grow in value, earn consistent returns, and give you peace of mind. Whether you’re buying land, a home, or investing in a new estate, we help you evaluate every deal through a strategic lens.
Let’s help you spot your next good investment.
📍 Visit Us: 781 Somide Odunjinrin Avenue, Omole Phase 2, Ikeja.
📞 Call/WhatsApp: 08084410146 || 07063557501
📩 Email: geopontsproperties@gmail.com
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