Our Special Guest on week 5 of The Property Show on Inspiration 92.3FM was Mr. Damola Awosika, Partner at Estate Links and the theme of the show was Overseas Property Buying.
Click here to listen to a studio record of the show or continue reading for a quick summary.
The show kicked off with Mr. Awosika explaining that people buy property overseas mainly for investment purposes. To do so, they look out for economies that are more stable with prospects of a return on their investment.
Mr. Awosika also stated that it is possible to get mortgage finance to buy a property overseas. Citing an instance, he stated that a non-resident of the United States seeking to buy a property there could be required to pay a deposit of 60% of the value of the property. A requirement of this nature by a lender is made with the purpose of reducing the risk of the borrower (overseas property buyer) defaulting. He also stated that the process of getting a mortgage to invest in a property in the United Kingdom is fairly simple as some Nigerian banks with operations in the UK make mortgage facilities available.
With the housing sector currently on a rebound, Mr Awosika, whom operates across the US, UK and South Africa, stated that the choice of investment destination for prospective investors will depend on the type of investment they are looking at. For short-medium term investments where an investor is looking to get a quick turnover, Mr Awosika stated that the US will be ideal for such an individual. The global meltdown had a drastic effect on property prices in the US with prices falling as much as 80% in certain areas. Thus, house prices are moderate and an investment made can be recouped within 6 – 8 years. On the other hand, he stated that individuals looking to make long term investments could consider investing in the UK. While the global meltdown also affected the UK economy, the effect was moderate as house prices only fell by single % digits. Thus, house prices, even though not as affordable as what is obtainable in the US, have a higher probability of increasing in value. Thus, an individual investing in the UK will in the long run have a higher return than one investing in a property in the US.
In order to benefit from Nigeria being an investment haven for foreign investors in the near future, Mr. Awosika advised property developers and real estate professionals to ensure they are visible. Stating that Nigeria will be the biggest economy in Africa by 2020, he advised real estate practitioners to ensure they embrace the use of the internet and technology to ensure that they have a presence that can be seen by potential investors around the globe.
In conclusion, Mr Awosika stated that individuals interested in buying properties overseas should ensure they are represented by professionals in overseas property buying. Such professionals will walk a potential investor through the requirements of buying a property overseas and this helps genuine investors to carryout their investment activities within the law and avoid being labeled as fraudulent or being seen as trying to cater away funds to an investment haven.
About Damola Awosika
Damola Awosika is a partner at Estate Links – a firm of international real estate consultants set up with a special bias for global real estate and countries of operation including the United Kingdom Kingdom, United State of America, South Africa and Nigeria.
Damola provides general investment advice on real estate and assists with purchases of properties in the UK, US and SA. He manages a portfolio of approximately 200 properties spread over the same area.
Prior to joining Estate Links, Damola headed several positions with leading UK Housing Associations and was until February 2010, the Voids and Allocations Manager of one of the largest UK housing associations, having responsibility for over 26,000 properties and serving 26 London local authorities/home counties.
A qualified legal practitioner with experience in commercial law, Damola also holds a Master’s Degree in the property/housing management field.
The Property Show is a weekly real estate radio show with www.privateproperty.com.ng which airs live every Tuesday at 5PM on Inspiration 92.3FM and is hosted by popular OAP Ms. Wana Udobang (Ms. Wana Wana).
The Property Show comprises a 15-minutes interview with a Special Guest that will enlighten listeners on selected real estate topics and issues. Also, there is a 15-minutes phone in segment that enables listeners of the show make enquiries and receive expert advice from a pool of real estate experts and professionals.
Join us again next week for another interesting show.
