By Yinka Kolawole
Cooperative approach to buying property simply means a large group of people coming together as a society, a cooperative or in any other related form for a common goal, which is to buy property/properties in the same place.
Debo Adejana, MD/CEO, Realty Point Limited, noted that this is advantageous to a large extent because it gives great economy of scale. There’s a saying that we have strength in numbers, and this comes to play in the cooperative approach to property acquisition. However, the issue of the location, size of the land and budget are also important, neither can an inspection of the property be thrown out the window.
But in terms of acquiring property, it is safer only if the people at the helm of affairs are sincere and know how to go about it, especially with the engagement of professionals. It is more cost effective because of the economy of scale that comes to play. A cooperative can negotiate better due to bulk-purchase. As a cooperative you have the listening ears of agents, vendors, government and other major players in the property market.
In actual sense, there are some key things that must be factored if you are to acquire property via the cooperative approach. You must know the site the cooperative is buying before you decide on joining. Is it the kind of site you will love to live in? What development plans are in place?