Skip to main content

Properties You Should Not Buy

 Visit Our Website

Most people don’t know what to watch out for when buying a property for personal use or for rental purposes. You cannot base your interest in properties only on price alone; it must meet all other criteria for a good buy. So ensure to carry out proper inspection and investigation on the house and the surrounding area or community.

These are some things to consider before paying for aproperty.

·        Closeness to a valley or gully: Any building or land close to valley is prone to land slide that can occur anytime in the future without warning. These areas are also pathway for rainwater which is naturally finding its way from uplands to the valleys, therefore will be prone to erosion.

·        Never buy a house in an area with too many bent houses and structural cracks: An area with too many bent buildings suggest that the depth of refusal (hard incompressible soil) being used as piling end depth may be wrong or poor piling practices may have been carried out by the companies that handled the job. Proper investigation has to be done to ascertain the reason for having several sinking houses in the vicinity. If you go ahead and buy a house in the area it will be a matter of time before the house start sinking too, the only exception is if there is a detailed piling document issued by a reputable company that did the job. The piling document has to be extensively verified for adequate compliance. Nevertheless, it will be better to get a land and carry out comprehensive soil test and do the foundation piling with a reputable company. This way you are certain the piling was done properly to the right depth.

·        Buildings that have been exposed to continuous flooding for years: This makes the foundation weak and may be at the verge of collapse. Before buying a ready remodeled or renovated house built several years back, ensure to do the right structural integrity checks. If you must buy this house for remodeling or renovation, proper assessment must be carried out to ascertain the structural integrity. Most times, if there is high risk resulting from defects like bending, cracks and settlement in the structure of the building; it will be wise to demolish the structure and build a new house from the foundation.

·        Property at the bottom of a slope: Plots of land at the bottom of a slope are prone to flooding due to natural drainage of water coming from the uphill lands. This is even worse when there is no channel for onward drainage of the flood from your property to a nearby river or valley. Such buildings may suffer from severe gully erosion because of concentrated runoff from steep ground into depressions. These flood water carry debris that elevate the potential to damage structures and injure people. Sometimes, people buy properties at the bottom of the sloppy area and enjoy it for some years with very little flooding, however, after several years they begin to experience severe flooding, and this is due to more houses being built up hill. These houses and their compound flooring reduce the exposed surface area of the soil for the rainwater to sink naturally into the ground and thus increase flooding in the immediate environment.

·        Structures with more than two floors: In areas where there are minimal government oversight to ensure that the approved structural plans were followed strictly during construction, some people use substandard materials to save cost. Many of such structures that were built years ago have the tendency to collapse due to bad design, faulty construction and/or foundation failure. Such collapse results from cracks and differential settlement which has a huge effect on the structural integrity of the houses. Building inspection (visual inspection, concealed object inspection, dampness inspection and stress and strain survey) needs to be carried out to know the risk of such existing buildings before you buy.

·        Riverfront properties: Living by a river may have several benefits but the disadvantages should be considered.  Waterfront properties with flowing water are easily affected by erosion and avulsion; this is the natural washing and tearing away of land over which it passes. Relying on building reinforcement to strengthen an existing riverfront building can be very expensive. Also these areas might be plagued by a great deal of activities and noise coming from watercraft, yelling etc. It is easy for people to trespass on your property due to the easy access from the river. Flooding is the greatest risk for the houses as varying water levels throughout the year can cause serious trouble.

·        Low foundations: Never buy a house with foundation at the same level or lower than the road. It is very important to check the topography of the area. More importantly, one should consider the level of the land/compound around the building with respect to the road. The higher the compound and the house compared to the road, the better. This will prevent flood from entering the compound as well as the house from the road.


Ø  Selection tips before you purchase the land site for building a rental property

Ø  How to prioritize your budget to get back the best sale or rental value

Ø  Challenges of Managing Rental Properties

Ø  What You Should Know About Real Estate Speculation


Disclaimer
Any views or opinions represented in this blog belong solely to the blog writer/owner and do not represent those of people, institutions or organizations that the writer/owner may or may not be associated with in professional or personal capacity, unless explicitly stated.
Any views or opinions are not intended to malign any religion, ethnic group, club, organization, company, or individual. All content provided on this blog is for informational purposes only. The writer/owner of this blog makes no representations as to the accuracy or completeness of any information on this site or found by following any link on this site.
The writer/owner will not be liable for any errors or omissions in this information nor for the availability of this information. The writer/owner will not be liable for any losses, injuries, or damages from the display or use of this information.
Comments are welcome. However, the blog writer/owner reserves the right to edit or delete any comments submitted to this blog without notice due to:
- Comments deemed to be spam or questionable spam.
- Comments including profanity.
- Comments containing language or concepts that could be deemed offensive.
- Comments containing hate speech, credible threats, or direct attacks on an individual or group.
The blog owner is not responsible for the content in comments.

This blog disclaimer is subject to change at any time.

Comments

Other interesting posts

Properties in New Developing Areas vs Developed Areas

  Visit Our Website  When considering real estate investments or purchasing a home, buyers often face a critical decision: whether to invest in a property in a new developing area or an established, developed area. Each option comes with its own set of advantages and challenges, and the best choice depends on individual goals, financial capacity, and lifestyle preferences.   Developed areas are typically characterized by well-established infrastructure, mature neighborhoods, and easy access to essential services such as schools, hospitals, shopping centers, and public transportation. These areas are often located closer to city centers, making them attractive to individuals who prioritize convenience and accessibility. Properties in developed communities generally have higher market values, driven by demand and the scarcity of available land. As a result, these areas often offer more stable and predictable returns on investment. However, this stability comes at a cost—pro...

Effective Strategies To Increase Your Property's Value

  Visit Our Website  Improving a property to make it more appealing to potential buyers or renters is a sound investment tactic. There are several cost-effective ways to add value to your home, from simple cosmetic updates to more significant renovations.   One of the easiest ways to increase a property's value is by enhancing its curb appeal. Freshening the exterior with a new coat of paint can instantly make the house look more inviting. Additionally, well-maintained landscaping, including neatly trimmed lawns and colorful flowers, can leave a positive first impression. If local regulations allow, consider adding extensions for an extra room, bathroom, garage, or carport, which can significantly boost the property value.   Key areas within the home, such as the kitchen and bathroom, are crucial to potential buyers. Upgrading the kitchen with modern countertops, cabinets, and appliances can be a wise improvement plan. Similarly, renovating the bathroom by replacing ...

Establish a Clear Exit Strategy Before Investing in Real Estate

  Visit Our Website  Investing in real estate is one of the most significant financial decisions you will make. Whether purchasing a home for personal use or acquiring an investment property, it is essential to approach the process strategically. A clear, well-defined exit strategy ensures that your investment aligns with your financial objectives and protects your capital over the long term.   Why an Exit Strategy Matters Before finalizing any property purchase, establish a clear exit strategy; this is your plan for how and when you will sell or divest from the asset. An effective exit strategy helps mitigate risk and ensures your investment remains adaptable to changing market conditions. Key questions to consider include: Can the property be sold   easily ?  Properties in prime locations generally offer higher liquidity and  greater  market appeal. How quickly do similar properties sell?  Understanding the average time on the market for compara...

Return on Investment (ROI) vs. Property Appreciation

  Visit Our Website  Real estate investment has long been a popular choice for those seeking to grow their wealth. However, real estate investment strategies can differ significantly depending on the investor's goals. Two of the most common metrics used to evaluate the success of a real estate investment are Return on Investment (ROI) and Property Appreciation. While both are crucial for understanding the profitability of real estate, they represent different aspects of investment performance. This article will explore the differences between ROI and property appreciation, how they are calculated, and the factors influencing each.   Return on Investment (ROI) is a measure used to evaluate the efficiency of an investment or compare the efficiency of several different investments. In real estate, ROI specifically measures the return an investor earns on a property relative to the property's cost or total investment cost(down payment, closing cost, or cash).   How to Ca...

Take Baby Steps In Real Estate Investment

    Visit Our Website    It is very easy to lose money due to bad investments if one is over-ambitious as a real estate investor. These kinds of bad investments are typically carried out without good knowledge of what to watch out for when buying a property. This inexperience leads to buying properties above fair market price , in the wrong neighborhoods, building the wrong type of house or apartments for a particular neighborhood, or in an area that may not appreciate in a long time. When investing in real estate as an upcoming investor or developer, it is wise to start with a few properties at a time. Observe how these properties will perform, then use the experience in handling subsequent investments. Make sure to observe the property manager and tenants in terms of tenants’ selection, rental payments, property usage, prompt maintenance, and property management. This is one of the issues some landlords face as tenants will not make rental payments as at when due,...

Merits and Demerits of Building a House from Scratch

Visit Our Website Building a house from scratch for rental purposes or outright sale has its merits and demerits as compared to renovating an existing building.    Merits You can have an input on the architectural design of the house. You can decide how the external view and the interior of the house should look like. Creating an area with good and easy to move around living space can make the apartment appealing to tenants. You can decide the budget for the project. Based on your estimated selling price for the proposed property, you can decide on the budget you want to put into the investment to give you a reasonable profit margin. You can decide the number of bedrooms for each apartment. Most times with a good survey of the vicinity you will be able to tell what kind of apartment will rent faster and give higher returns. Example the difference between 1-bedroom apartment and 2- bedroom apartment or 2- bedroom apartment and 3- bedroom apartment may not be ...

Key Differences Between Return On Investment (ROI) and Property Appreciation

  Visit Our Website  When evaluating real estate investments, two crucial metrics come into play: ROI (Return on Investment) and Property Appreciation. They may be telling us about the profitability of real estate but they differ in various ways. Here are 7 key differences between ROI and property appreciation, along with examples for clarity: 1. Definition - ROI (Return on Investment) refers to the overall gain or loss made on an investment relative to its cost, expressed as a percentage. It considers both rental income and capital gains (property value increase). For example, you purchase a rental property for $200,000, receive $10,000 in annual rent, and sell it two years later for $250,000. Your ROI is calculated based on a total rental income of $20,000 and property appreciation of $50,000.  -Property Appreciation refers to the increase in the value of real estate property over time, typically driven by market trends, demand, and property improvements. For example, i...

Real Estate as a Store of Value

Visit Our Website Store of value is a function of an asset that can be saved, retrieved and exchanged at a later time without any risk of losing it and also retains its purchasing power into the future. Wealth is the total of all stores of value monetary and non-monetary assets. The most common store of value in modern viewpoint has been currency, precious metal (Gold, silver etc.) and real estate. The underlying reason for using this storing medium is that it has a better way of managing the risk associated with it. Most people would say money is one of the best ways to store value because of the ease of exchanging it for other goods and services without time wastage, but it can quickly be affected by hyperinflation mostly in developing world. However, real estate is a better means of storing value for investors if the property is strategically located in choice areas, well-built (architecturally and structurally) and free from any form of disaster. A good house will gain ...

Factors To consider Before Buying A Real Estate Property

     Visit Our Website  Investing in real estate needs careful planning and timing of the market if it is for business purposes because you want a good return on investment (ROI). So, factors to consider include but are not limited to market research, financial analysis, and some local factors. The first thing to do is to think about your long-term goals for the property. Are you buying it as an investment, a primary residence, or a vacation home? Your intentions can influence when the right time to buy is for you. If buying for business purposes(rentals or for resell) try to avoid speculating on short-term market fluctuations. Real estate is typically a long-term investment, so focus on the property's long-term potential rather than short-term gains. Research the current real estate market conditions in your preferred area to buy. Look at trends in property prices, inventory levels, and market forecasts. Is it a buyer's market or a seller's market? Seek advice from ...

What You Should Know About Real Estate Speculation

Visit our website Real estate speculation  is the purchase of a real estate asset (building or land) with the hope that it will become more valuable in the future. It is a passive approach to making profit based on forecasts  and educated guesses of future real estate market trends not substantiated by firm evidence . Speculation leaves no room for the speculator to influence the profit outcome,  because there is not much you can do as a speculator to drive, influence or accelerate the appreciation of the land or building(s).  Real estate speculation can be likened to investments in stocks or sports betting in this respect. On one hand, real estate investments generally involve a degree of speculation on the potential for appreciation in the value with time due to changing market conditions (demand versus supply) and/or improvements in face value (infrastructural, social, economic, security) in the locality. On the other hand, it is important to note that ...