Budget and Location of Property

I have been a strong advocate of location, location and right location when it comes to property.

Great properties for you with good capital growth potential in your dream environment can lead you into expensive territory. Sometimes these territories are out of reach for tight budgets – particularly for first-time home owner.

You might have heard the popular real estate adage ‘geography is destiny”.

So when budget constraints narrow your criteria, what do you look for instead?

Three factors to consider are;

The Amount – this is determined by your savings, so you usually have little say here.

Location – remember – around 80% of your property’s performance will be due to its location, so this is a factor I would not advise you tamper with.Budget and Location of Property

The property – this is where you may have to make some compromises if you’re on a tight budget.

If you are seeking for more affordable properties, you may need to make concessions in the property type. You do not want to buy in order to stretch your money further.

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However, there are some properties to run away from by all means possible:

  • Those that back onto highways or are located on main roads.
  • Ones that are too close to train stations or airports flight route.
  • Properties located near factories or industrial zones

If you can only afford a property in any of the above locations, keep your money in your pocket.  Either you look elsewhere or wait till you can afford to buy an “investment grade” property.


Here are some tips if you’re finding your budget is a bit tight:

Look for greater tomorrow location. Study master plans and check out where the prospective property will be in the next five or ten years.

It may be better to buy a service plot(s) now in an upcoming area. The location will be great in next few years.  Watch it grow than tie down your money in a property in a secondary location where the future is blink.

Consider buying a rundown dwelling in a better location. You can always bring it up to scratch with some renovations down the track.

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If you can’t afford a house consider a town house or villa unit – both these types of property benefit by having a high land to asset ratio.

Consider taking advantage of the ripple effect – look for a good property in an adjoining suburb – one which will benefit from the outward ripple of rising property prices.

Finding an “investment grade property” is a time-consuming task with plenty of research and planning required, however if your budget is tight, don’t bend on certain ‘deal breakers’.

You can never change a property’s specific location so don’t compromise on this factor.

On your search for investment grade property, you may wish to talk to us on askme@propertymatters.com.ng or call: 09055522231

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Ory-Martins has been consulting in management and real estate for more than 10 years now. He is Chief Executive Officer of Boeing Luxury Estate Ltd, a foremost real estate developer in Nigeria, Principal Partner, MP Hills Consulting and CEO of Inicreat PMA Ltd, a real estate consulting firm. He is an On Air Personality with major radio stations in Nigeria


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