The Importance of Search

Mr Lekan had always wanted to invest in property. After living in a rented apartment for 15 years, he knew it was time for him to move on. To this effect, he went online, looked up some properties and finally found an agent to talk to.
A week later, he visited the site and loved it. It would be where he would finally build the home of his dreams. What he did not know was that the land was under the Lagos State Government housing scheme, a property which was under a government restricted area.

Mr Lekan never realized this; he was quick to trust “an agent” so fast. The agent had showed him documents regarding to the said property; he was satisfied with the status and he was to make payment few days after when he gets his monthly salary.
Just on Monday, I visited a former colleague of mine and while we were discussing what I do, Mr Lekan over heard us talking and he jumped in on the discussion. It was in our talk that he disclosed he was about making payment for a property. I asked him if he had verified the status of the property at the Lagos State Land Bureau, Alausa and he said he didn’t feel it was important since the property had “genuine” titles.
Immediately, I phoned my contact, a surveyor at the office of the surveyor general in Alausa and we went to the said property to get the coordinates and taking it for search.
Yesterday, the results got to us and behold the revelation that the said property was in a government restricted zone.

Mr Lekan felt to disappointed haven been lied to in the face by the said agent that the property was free from every form of encumbrances.
Immediately, he has contracted the job to us at Jimmick Real Estate Limited to find him a property and he has fixed a date for inspection.
At Jimmick Real Estate Limited, one of our core values is empathy. We put ourselves in the shoes of our clients and finding out what their goals are and making them our goals.
Let a trusted hand handle your investment project. Talk to a staff at Jimmick Real Estate Limited today.
Contact us on +2349096263676 or +2348054727883 or email us, info@localhost

How I Saved My Friend

Recently I had a chat with a very close friend of mine who has been lamenting on selling his car even haven acquired the recent one with a commercial bank loan.
Two years ago, this my friend took a commercial bank loan to buy a car worth N1.5m in 2016 not for business/investment purpose but for his personal needs just to blend with the society.

Fast forward to 2018, he got so tired of the car that he is ready to take up another loan to acquire another one still for his personal needs and he has approached me to assist him.
As a professional financial and estate expert, I think its not a new idea to get a loan and also, its your money and you can do as you please with it however, don’t you think investing that money in a trade that converts and generates more money should be a topmost priority?
Instead of buying a car which would depreciate and which you would eventually lose interest in, in the next year or two, why not take that loan to finance an investment in land that would produce more ROI in a short time?

This is a big secret in wealth generation that only your real friends will tell you.
Now my friend owns a 600sqm land in Hopewell Estate, Ibeju Lekki and he has been thanking me for showing him the light.
What are your priorities? Do you desire a trusted way to generate wealth with little or no efforts? Then land banking is the way to go.
Talk to me today to get started, 09096263676 or 08054727883, email, tayo@localhost.

Be like my friend, be smart.

3 Good Reason To Invest in Real Estate

Financial Security:

Your financial security depends on how much you invest and how efficiently you do so. Investments can help you build a corpus so that you can generate a large cash reserve.

For Emergencies:

Investing helps you create a financial cushion for your family. Ideally you should have investments to the extent of at least six months’ income at all times.For instance, do you have the means to provide for your family if you were hit by unforeseen circumstances?

Wealth Creation:

In order to create wealth you need investment options that add an element of growth to your money. The potential to help you build your wealth kitty over an investment horizon of 7-10 years and beyond.
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Why Use Jimmick Limited for Facilities Management

Jimmick Limited has a team of experienced facility managers who can help make sure your property facilities are well maintained and managed to ensure you receive a reliable income stream, excellent capital growth and the best returns possible – as well as a guarantee of exceptional customer service.
Whether you are overseas or based in Nigeria, you’ll want to ensure your property facilities are well managed. Jimmick Limited facility Managers can help you maximize your returns – offering a mix of investment and facility management expertise to address every possible circumstance on your behalf.

  1. Experience on your side – our experienced facility managers understand the real estate market and are experienced at screening properties, reference checking and reviewing property history to ensure your investment facilities are well managed.


  1. Avoid unpleasant confrontations – We are a buffer between you and the tenants – our facility managers will help deal with problems and other facility challenges whatsoever involved.


  1. Tenants have someone to talk to right away – if an issue happens with the property facility; our facility managers are more accessible to address problems at all hours of the day. Our negotiating power with tradespeople ensures you get the best price on all purchase.


  1. Decrease investors turn over – We know how to keep landlords happy and happy landlords are more likely to want to stay and refer more landlords.


  1. On time purchase – Our facility managers will work to ensure payment are broken down and made as flexible as possible to suit landlord’s convinience.

  1. Less stress – someone else is managing your property facilities and so you don’t have to worry as they will do most of the work for you.


  1. Reduce your Risk – By engaging a Jimmick Limited facility manager, you reduce the chance of having a bad property therefore lowering your risk of lost income.

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Costs of Selling Real Estate

When looking to sell your property make sure you are aware of the costs associated with the sale.  Here is a summary of the key costs you need to be aware of.  Talk to a Jimmick Limited agent if you need clarity around these costs.

Legal / Conveyancing

In most states you are not able to sell your property unless you have a contract of sale prepared.  Engaging a lawyer or conveyancer to ensure your real estate contract is drawn up with accuracy is an important first step and in some states an essential item before you are able to even list your property for sale.
Legal and conveyancing costs vary depending on the complexity for your property.

Professional photography of your property

Great marketing is all about using maximum exposure to capture people’s attention and interest in a property.  In most cases the first thing a buyer will see is an image of the listing, therefore the best way to grab someone’s attention is to use a professional photographer who is focused on capturing the best features of a property.  With 70% of buyers likely to see your property online, making sure you have high quality, accurate images of the property will help your property stand out from the crowd.
Another way to make your property stand out is to also produce property videos which are great for sharing on social media
Photography – this can vary dramatically depending on your requirements, whether you want a twilight photo, drone photo or have other requirements.  It is best to talk to your agent about costs involved here.

Video’s start at approx.: N30,000 and goes up to N100,000 depending on what you are looking for.

Marketing your property

Marketing is a separate cost paid for by the seller on top of the commission that the agent receives when the property sells.
These funds are kept in a trust account and used to pay for marketing material such as signage, newspaper advertising, internet advertising, brochure printing and auction marketing.  A typical marketing budget is approximately 1% of the asking price. For example, on a N6,000,000 property you should expect to spend N70,000 on marketing.  This could be paid upfront or out of the settlement monies depending on the agreement made with the vendor.

Marketing is normally payable even if the agent does not successfully sell the property.
Budget for 1% of your asking price

Agent Commission

Agent commission is a percentage that is calculated on the sale price and is paid to the agent at time of settlement.  You don’t need to factor this expense in up front as the agents commission is only paid if your property sells.

Property styling

Styling your home to sell is an important element to a successful sale according to 98% of Jimmick Limited agents.  Home styling can be decluttering, cleaning and de-personalize the home, rearranging the existing furnishings and accessories through to employing a professional home stylist who will remove the majority of the existing belongings and refurnish / decorate the space with hired items.
Property styling your home will boost final sales price from 7.5% to 12.5% according to a survey of the top agents in Jimmick Limited.  With 87% surveyed agents believing you will earn a higher price by property styling.

Moving costs
Depending on how much you have to move you may decide to organize the move yourself, hire a van and get a few friends to help you – this is the cheapest option.
If you decided to use the services of a professional moving company it is recommended you get a quote from 2-3 different providers for the services you’re seeking.  You’ll also need to decide which type of service you want. This might be a full pack, removal and unpack at your new home, or removal only. Most removalists offer insurance on top of their services, and this can be a useful tool to protect your contents from accidental loss or damage.
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Different Ways to Sell Your Property

Three main ways to sell a property

There are a number of sales methods you can choose from when selling your home.  It is important you talk to a Jimmick limited Real Estate agent as to which method they believe is right for you and your property in order for you to achieve the highest sales price.  Certain areas and certain properties within an area will achieve better results when sold via private treaty vs auction and vice versa.  So make sure you do your research and talk to your agent about the best method of sale for your property.

Here is a guide to understanding the different ways you can sell a property.  To find out more detail about these methods and the relevant rules and regulations in your individual state and territory read our specific state information articles.

Sale by Expressions of Interest (EOI)

Sale by Expressions of Interest (EOI) is when you invite buyers to submit an offer to purchase your property by a specified time and date. Each potential purchaser puts forward their best and final offer (in writing).

Generally your property will be on the market for 4-6 weeks to enable you to promote your property effectively and to ensure ample time is given for buyers to look through the home, finalize their finance and determine the price they are willing to pay.
When submitting an expression of interest, you need to include the price you are willing to pay, conditions of sale, such as settlement dates, finance conditions and inclusion and exclusions of the sale.
At the end of the sale period the vendor will review submissions and choose the expression of interest that interests them the most.
If an acceptable offer is not found by the vendor, the property may be placed on the market as a private treaty sale or EOI’s may be called again.*
Make sure – if you are putting in an offer, remember that you may only have one chance to secure the property, so put your best offer forward to ensure you’re not disappointed later on.*
Expressions of Interest provide you with the benefits of a private treaty sale but with the urgency of an auction without the potential stress.

Some of the benefits of selling your property by Expressions of Interest or Tender include:

This method of sale shows you are confident about your property and a successful sale.
Tenders offer the intensity of an auction but without the potential stress of an auction day.
Tender enables you to keep the price you may accept for your property discreet and lets the market dictate the price buyers are prepared to pay.
A tender has a closing date to create a sense of urgency in the buying process.
This method of sale generates competition for your property.

Selling by Private Treaty

This is when you, the home owner, set the price tag you want to put on the property for sale. A Jimmick limited Real Estate agent will then negotiate with each and every interested party, trying to find a willing buyer who will meet your nominated price or as close to it as possible.
It is important to ask a Jimmick limited agent for guidance with regards to establishing your asking price.  They are experts in the area, they understand demographics, market trends, pricing value and importantly comparable sales in your area.  By having a clear understanding of your property’s value will ensure you set a realistic price.
In general, sale by private treaty gives the seller greater control over the sale, more time to consider offers by potential purchasers and the ability to extend the time the property is listed on the market (although this often leads to potential purchasers wondering why the property is not selling). Plus potential purchasers must make offers on your property ‘blind’, this means without knowing what other buyers are willing to pay.

Some of the benefits of selling your property by private treaty include:

A fixed price makes it easy for buyers – they don’t need to ‘guess’ your desired sale price.
The price can be adjusted throughout the marketing stage, based on qualified buyer feedback and local market conditions.
This method of sale is a tried and tested style of marketing.
It assists buyers to formulate offers that address your desired selling price, which leads to a faster negotiation process.

Selling by Auction (Not common in Nigeria)

An auction is a private sale held at a specific place, time and date following a marketing campaign over several weeks.  A licensed real estate agent will conduct the auction which is governed by strict rules and regulations.  These differ in each state and territory so to find out what they are for your area.
An auction by nature creates urgency as there is a definitive time in which the buyer must act or they risk losing their opportunity to buy the property. Setting an auction date groups all interested buyers together at the one time, creating a competitive environment and the greatest chance to achieve the highest possible price. The theory of an auction is that your home will sell at true market value at that particular time.
Unless the property is passed in and consequently becomes listed ‘for sale’, the seller knows exactly when a sale and settlement will occur. The benefit of this is being able to plan ahead with your next move.
During the marketing campaign, buyers are usually given a price guide which can vary throughout the campaign depending on the amount of interest in your property and feedback received from buyers. The great thing about auctioning your home is that there is no price limit only a minimum amount that you decide you are prepared to sell for, which is called the reserve price.
Setting the reserve should be an analytical decision based on buyer feedback obtained by your agent during the campaign as well as comparable sales in your area. By now you should have a good idea as to how many buyers are genuinely interested and how they feel about your home in relation to the price that has been quoted to them.
The marketing undertaken for an auction property needs to be more focused and can often cost you more. A date is set and you need to create strong buyer interest in a short amount time. A Jimmick agent will recommend using a multi-faceted approach, whereby you advertise across a number of different mediums each week until auction day.
Once the hammer falls, the property is sold and there is generally no cooling off period for the buyer or the seller. Buyers need to conduct building inspections and ensure their finance is approved prior to bidding at the auction. If the property fails to sell at auction, you can continue marketing the property with an asking price. It is likely that one of the buyers, often the highest bidder will come forward and negotiate a sale with the agent on your behalf.
There is another auction term you may also hear – Private auction.  These are held behind closed doors and only accessible to registered bidders not the general public. This is often favoured by vendors with very expensive properties who value privacy.

Some of the benefits of selling your property by auction include:

Auctions attract more buyers to your property because prospective buyers aren’t put off by an asking price.
The auction date creates a sense of urgency that prevents buyers delaying their decision and lets them know you are serious about selling.
You are protected by a reserve price. This means your property won’t sell unless bidding reaches a pre-agreed level.
There is no ceiling price so you have the opportunity to achieve a price above your expectations.
Auctions produce an unconditional contract for sale with a set settlement date.
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Understanding Agents Commission

Why is Commission Paid?

Commission is the agent’s reward for a successful result, no sale for you means no commission paid to the agent. The agent’s risk when taking on your property is investing a large amount of their time and effort with no compensation if a sale isn’t achieved. It is the downside to being a real estate agent and an even greater incentive to work hard to make a sale.
For this reason, experienced agents will seldom take on a property that isn’t saleable because of unrealistic price expectations. It could mean two months of hard work when it was clear from the beginning that achieving such a price was highly unlikely.

Negotiating Commission?

Commission rates can vary from state-to-state and agent-to-agent. Some agents are willing to negotiate their commission in order to win your business. While this may appear to be a good thing, sellers should be wary. The best agent is rarely the one with the lowest commission rate.
An experienced agent who has a good track record is unlikely to reduce their fees so do not be deterred. An agent offering the lowest commission may end up costing you more come sale day. With less in their pocket, you need to ask yourself if they will go the extra mile when it comes to negotiating on your behalf.

Test an agent’s negotiation skills, it will give you a good indication of how they will discuss pricing with buyers. Are they willing to stand firm or are they quick to undersell?
A fair way to negotiate commission is to offer the agent an incentivized scale. This means the more your house sells for the more the agent is paid.

What Should an Agent’s Commission Buy You?

An agent should help you to present your property in the best possible way. Be sure to ask whether they think something needs updating, repairing or removing. If any work is required, your agent may be able to recommend the appropriate trades people at a competitive price.
The agent will help you to decide on the best possible marketing campaign for your property, this should be a tried and tested approach that they know will attract the greatest amount of buyer interest.

The agent is responsible for booking the advertising space, arranging professional photography and copywriting, designing ads for you to proof and submitting them to the paper or uploading them online. Ask your agent to take you through a detailed marketing campaign and budget plus in the event of an early sale, ask at what stage can ads be pulled and your money refunded?
The agent should be present at open houses and private buyer appointments. They, or their team, should follow up with all buyers after every open house and promptly relay this feedback to the seller, in case a change of tactic is required. Ask about the timing and format for providing that feedback.
The agent is responsible for sending out contracts to interested buyers, liaising with solicitors, banks, surveyors and building inspectors on your behalf.
They must be prepared to negotiate price with buyers and work an auction room to achieve the highest possible price for you at sale time. Ask them how they plan to run the auction or the tactics they use when negotiating price with buyers, and discuss with them the range of their negotiation authority.
Once a sale is achieved, the agent needs to distribute contracts to solicitors, bank the deposit money, conduct a pre-settlement inspection with the buyer and finally, hand over the keys to the new owner.

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Understanding Real Estate Tenancy Agreements

As a legal document make sure you spend time reading and understanding what you are signing
A tenancy agreement (or lease) is a written agreement between a tenant or resident and a property manager / owner.  As it is a legally binding contract spending time reviewing the agreement before you sign it is critical.
While each state and territories regulations vary slightly, all tenancy agreements must include the following:

The name and address of the tenant, and the property manager/owner or provider
The dates when the agreement starts and ends (or state that the agreement is periodic)
Details about how the tenant should pay the rent and how much rent is to be paid
Details about what the tenant and the property manager/owner or provider can and cannot do, known as ‘standard terms’
Any special terms (these should be agreed in advance, e.g. that dogs are allowed but must be kept outside or carpet cleaning, no smoking etc)
The period of tenancy agreement
Fixed term agreement – where a tenant/resident agrees to rent a property for a fixed amount of time (for example, 6, 9 or 12 months)
Periodic agreement – when a tenant/resident lives there for an indefinite period
Other points to consider

A written agreement must always be used when renting, even if the person renting is family or a friend.
The tenant should be given the agreement before paying any money or being committed to the tenancy and should read it and ask questions if they do not understand anything in it.
If a tenant does not have a written agreement they still have protection under the law.
After thoroughly inspecting the property if you identify any maintenance issues that need to be rectified, ensure they are added into the tenancy agreement with a time frame to be fixed.

Responsibilities of the Landlord / Agent

The landlord /agent is responsible for:
Meeting all the costs of preparing the tenancy agreement
Ensuring the correct form is used and completed
Providing a copy of the proposed agreement along with any relevant body corporate rules or bylaws to the tenant before they sign it. Once the tenant signs the agreement, they must return it to the lessor/agent within five days. The lessor/agent then has 14 days to give a copy of the signed agreement to the tenant
Ensuring that, when an agreement is signed, there are no legal problems that would prevent the tenant from living in the premises for the length of the tenancy
Ensuring the premises are in a good state of repair and ready for the tenant to move into on the agreed date
Holding fee and tenancy agreement
A landlord/agent may ask you to pay a holding fee on approval of your application for a tenancy. The most they can ask for is one week’s rent.

The landlord/agent can hold only one holding fee at any one time.  Depending on what state or territory you are in, determines how long the agent is restricted on entering into an agreement with another prospective tenant.  For instance in Queensland the agent can not take another holding deposit from another prospective tenant for 48 hours but in NSW it is 7 days.  Make sure you discuss the time period with the agent as you may be able to negotiate longer.
Upon signing the tenancy agreement, the fee goes toward the rent from the first day of your tenancy.
The landlord/agent must refund the fee if:

  • They decline to enter into the tenancy agreement, or
  • You refuse to enter into the tenancy agreement because the landlord/agent made any false or

misleading statement, or they failed to tell you any ‘material facts’.
If you otherwise decide not to enter into the tenancy agreement, the landlord/agent can keep the fee.
Question: How is this different from a ‘reservation fee’?
Answer: A holding fee can only be requested from a prospective tenant after their tenancy application has been approved.
Question: What does a holding fee do?
Answer: Acceptance of a holding fee means the agent or landlord must keep the premises for the prospective tenant for at least 7 days. The property must not be offered to anyone else during this time.
Question: What happens if the tenant changes their mind after paying a holding fee?
Answer: If the prospective tenant decides not to go ahead with the tenancy they will lose the full amount of the holding fee, not just a portion of it, as was the case under the old ‘reservation fee’ system.

Keep Good Records

A year can be a long time, and it’s easy to lose documents or throw out old paperwork. Don’t let this happen with your tenancy agreement. It’s a vital document that you will need when the lease ends, and is effectively the rules you must live by in the house.
Keep this, any bond lodgement forms and copies of emails in a specific folder for safe keeping. Nine times out of 10 they won’t be needed to resolve a dispute, but better safe than sorry! Taking photos of the residency before you move in is also an excellent idea, to prove the condition of the dwelling both before and after your tenancy.
Each state and territories rental regulations vary slightly, to find out about what is required for your area make sure you read our state and territory renting articles.
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First Time Renters Guide

All you need to know when renting your first property

So you have decided to rent for the first time and have found a property you want rent but what happens next?  Here is a summary of what you need to know before you sign your first residential tenancy agreement.

Securing your first rental property – what you need

Many first-time tenants worry that because they cannot prove a rental history, they will not be able to rent a property.  Fortunately, every tenant has been a first-time renter at some point and there are a number of things you can do to strengthen your application.
A property manager will be mainly concerned with an applicant’s ability to pay the rent, as well as their ability to take care of the property and comply with the terms and conditions of the lease.
The information you should supply will vary depending on your previous circumstances – for example, if you were previously living in student accommodation, you may wish to provide the details of the person who was in charge of managing the complex.
If you previously owned your own home and have sold the property, the agent who handled the sale may be able to act as a reference for you.
And if you are currently living with your parents, you will require personal references. In some situations, you may also choose to have a parent co-sign your lease with you.
Examples of documentation you can provide that will help a property manager make these decisions include:
Verification of employment
Verification of income
Reference from employer or fellow staff member
Reference from neighbor/teacher/business person/doctor/accountant
Photo identification – driver’s license/passport/student ID
Three personal references – these should not be from relatives
Last gas/electricity/phone bill or rates notice
Talk to the property manager about what is required to apply for the lease.

Documents a tenant should receive before moving in

The documentation required to be given to you at the time of sign-up differs slightly from state to state; however, the following items are required in most jurisdictions:
Information booklet relating to renting in your state or territory:
Copy of the residential tenancy agreement
Copy of the bond lodgment form
Original and copies of the condition report – to be checked, completed and signed, then returned to the office in the required time frame
Receipt for initial rent amount, lease fees and bond
Photocopy of all keys and remote controls (if any)
Emergency contact details

What is a residential tenancy agreement?

A residential tenancy agreement is a legal binding written contract between you, as a tenant or resident and a property landlord, is also commonly called a lease.  This document should be given to the tenant before paying any money or being committed to the tenancy.  Make sure you read it carefully and ask any questions.

What goes into the Tenancy Agreement?

the name and address of the tenant, and the property manager/owner or provider
the dates when the agreement starts and ends (or state that the agreement is periodic)
details about how the tenant should pay the rent and how much rent is to be paid
details about what the tenant and the property manager/owner or provider can and cannot do, known as ‘standard terms’
any special terms (these should be agreed in advance, e.g. that dogs are allowed but must be kept outside or carpet cleaning)
The length and type of tenancy – either a fixed term agreement where the tenant agrees to rent the property for a fixed term such as 6,9,12 months or a periodic agreement when a tenant / resident lives there for an indefinite period
Other conditions and rules.

What is a bond?

A bond is a separate payment to rent; it is money that acts as security for the landlord or owner in case you don’t meet the terms of your lease agreement.
At the end of your agreement if the property is in need of cleaning or repairs or if items need to be replaced the landlord or owner may claim some or all of the bond.
As the bond is a separate payment to the rent you cannot use any part of the bond as rent – so, when you are moving out, you cannot ask the landlord to keep your bond as final rent payment.

What is a condition report?

When you pay a bond, the landlord or owner must prepare a condition report.  This includes a general condition of the property including fittings and fixtures.  It is important that you carefully check the condition report and make sure it includes all existing damage or issues with the property.  We suggest taking photos of the property before you move in and provide a copy of these photos to your agent / landlord as record of the properties original condition.
Legislation allows tenants a number of days to check the details completed by the agent/owner on the condition report, to confirm or disagree with those details.  As the condition report can be used as evidence if there is a dispute about who should pay for cleaning, damage or replacement of missing items at the end of the agreement –make sure you go over it with a fine tooth comb.
Areas where the tenant does not agree with what is stated on the condition report should be noted on the appropriate section of the document. You must complete the inspection report and return it to the agent/owner within the specified number of days or the condition of the property is deemed to be accurate as at the agent’s completion. If you do need additional assistance, help is also available from various bodies, depending on the state or territory you live in.
Make sure both you and the landlord agree on the contents of the condition report before signing it.

Renting – routine inspection checklist

Your landlord or real estate agent may carry out a periodic inspection of the property to ensure it is being well cared for and any routine repairs are made. This inspection may include the following:
The property is being maintained in a clean and tidy condition.
The grounds are being maintained in a clean and tidy condition.
The property is not being damaged in any way.
There are no more than the numbers of people specified on the tenancy agreement living at the property.
No pets are housed at the property, unless otherwise agreed to.
Any maintenance issues identified can be attended to.
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Cost of Buying Real Estate

Understanding the different costs involved when buying a new home is important as it all adds up.
Before you look for a brand new home, you’ll need to prepare yourself financially. Buying a new home is expensive, so it’s important you plan ahead as best as you can.


Deposits are usually at least 10 per cent of the home’s overall cost, depending on the type of loan you obtain.

To determine how much your deposit will be, consider:

The average home price of the area in which you wish to buy.
The type of loan you wish to get.
The amount you wish to borrow through your loan.
As a current homeowner, you may be able to access the equity you have already built up in your loan to cover the deposit. If there isn’t enough equity, you’ll have to save the deposit yourself.
You can call our loan consultant for advice and loan requirements, +2348141781899 or +2349087090625

Stamp Duty

Stamp duty is a charge that is applied to the sale of residential property by state governments. It is not a fixed cost across the country – it differs in each state and territory so make sure you find out about the stamp duty costs for your area.
The cost is usually calculated based on the price of the home you purchase, but each state has its own system.

The rate often differs depending on several factors:

Whether you are purchasing vacant land or a brand new house.
If you are using the home as your main place of residence.
It can be complicated to work out stamp duty on your own, as there are many rates that apply to different house prices. Consult an online calculator to help you determine the cost.

Lenders Mortgage Insurance (LMI)

If you want to borrow more than 80% of the property purchase price you will normally be charged Lenders Mortgage Insurance.  This insurance payment covers the lender in the event that you can’t pay the home loan back.
Get your budget and savings in order well before you buy to avoid this hurdle! The cost of LMI will vary depending on how much you borrow and the type of loan you select.

Building Insurance

When you’re spending your life savings on purchasing property it makes sense to protect it. While building insurance is a compulsory requirement from your lender, there are other insurance policies that you should consider.
For example mortgage protection insurance will ensure your mortgage repayments are met should you fall seriously ill. Income protection insurance will also help pay the bills should you be hit by an accident, major trauma or illness.

Legal Help

Buying a home is fundamentally a legal process so the help of legal experts, namely conveyancers and solicitors is critical. They will be an invaluable part of property negotiations and can help you through the paperwork.  However remember they will charge a fee so make sure you factor this in.  Some conveyancers will charge a flat fee while others will charge a sliding fee based on the properties sale price.  Make sure you discuss fees and charges before you engage their services.

Building, Pest and Strata

Having a building and pest inspection carried out on any property is usually a requirement by the lender but they are well worth investing in regardless.
If you are considering purchasing a unit or apartment, it is also in your best interest to have a strata inspection conducted – that is a report on the assets, liabilities and financial position of the apartment complex.
While having a building, pest or strata inspection completed on the potential property will cost you initially, it could be an invaluable safeguarding against buying a lemon.

Having a Little Bit Extra

You may have done all your research and been prepared for all the major hidden extras, but you should always set aside a little bit extra for those expenses you are not expecting.  Expenses like moving fees, utility connections, mail redirection etc.

Everything Adds Up

It is really important to consider all the extra costs that can / will apply to your property purchase otherwise the settlement time can be extremely stressful.
As a general rule if you factor in an additional 5-7% of the purchase price, on top of your deposit it should be approximately enough to help you cover the hidden extras.
Understanding the costs of buying a home is important as they may influence your decision to buy a certain townhouse or apartment, so it’s best to determine how much this is before you commit to a property.

Other Expenses

There are a number of other costs associated with buying your property:
Refinancing fees for your mortgage.
Pre-inspection costs.
Legal services.
A valuation of the home.
If you’re moving from a house into a unit or apartment then you’ll need to consider strata fees. This is an ongoing cost that covers the common areas of the apartment building, such as elevators, hallways and pools.
This figure may influence your decision to buy a certain townhouse or apartment, so it’s best to determine how much this is before you commit to a property.
While these are not all significant figures individually, they can add up to a sizeable sum. Be sure you can pay for them as they arise.
To fully understand the costs associated with buying a property in your state make sure you read our articles on buying real estate in your state or territory.
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