THE ESSENCE OF ADVISORY IN REAL ESTATE INVESTMENTS
A real estate advisory is a document that contains detailed information on a property or development along with its estimation with regards to its location, price, budget, current and future returns, etc that guides an investor in making the best decision for investment or reinvestment purposes.
Real estate is an important asset and investing in it has always been a favored and major source of wealth creation. Astute investors choose to invest in real estate because apart from its financial benefits, it satisfies an unnamed urge to hold and possess property. But as is always the case, any financially rewarding field is always mined with unscrupulous, fly-by-night operators and much hype. This is where real estate property advisors play an important role in navigating the minefield that is real estate.
The importance of getting the right advisory before making any real estate investment cannot be over emphasized but firstly we would need to examine who a real estate advisor is.
Who is a real estate advisor?
He/she is a certified professional and an ‘insider’ of the real estate business with hands-on real estate experience in dealing with investments of real estate funds. He/ she is aware of the shifting and fluctuating world of real estate and is in a unique position to guide an investor by analyzing different scenarios, formulating strategies and applying proven methodologies. Real estate advisors work in all fields of real estate be it commercial and residential sales, rentals, property acquisition and development etc.
Why do you need a real estate advisor?
• They help you make sustainable real estate decisions that are rewarding and open a stream of continuous income due to their broad knowledge on profitable and value added properties and investments in real estate and assets.
• They help propose efficient investment plans which are executed with effective minimized cost, and they later increase the investment value with the help of operational and financial management.
• They explain all procedures and workings of the real estate industry in a simplified manner. His/her knowledge of the laws and regulations governing real estate is an added advantage.
• They link you with the right agents, brokers, lenders, appraisers and inspectors.
What are the duties of a real estate advisor?
The duties of a real estate advisor will include but are not exhaustive of the following:
• Research – The real estate advisor is expected to provide economic research and regional research of whatever project he has been commissioned to do. The economic research will give an overview of the current state of the Nigerian Economy, the money market and the Real Estate market with full details on the major sectors in the economy and also interest rates that may affect any transactions. The regional research will be more focused on the city and the area of the city the property is located.
(To be continued in the next edition)