Property buying is the easiest 419 Nigerians fall for daily that never ceases to amaze me. Buying land in Nigeria is not easy. Please be safe and intelligent before you make your next purchase. Where the land is going for N200, 000 or N20Million, protect your money. You worked hard for it, you didn’t steal it, so don’t let some people steal it from you because you failed to look before you leap!
To the real estate beginner or pro, buying land for investment is considered one of the surest ways to make profits in the real estate industry. But there are things to consider when buying land.
Some of this important information to know before buying land as an investment or for residential use will be briefly discussed below.
- Budget is important when buying a land
The budget is the first thing to be considered when buying land. It does not matter if you have determined to buy land in Lagos or any other part of the country, the most important thing is having a budget. It is not about just having the desire to buy land, the real question is do you have the budget for it? No matter the amount you might have saved. It is always important to make research on the cost of buying and the extra expenses that are associated with it.
A budget serves as a guide, it allows you to make the best use of your funds. Examples of the extra expenses that you might want to consider when planning your budget are; Legal fees: this is usually 5% of the cost of the land; Agency fees are also around 5% of the cost of land; survey plan depending on your choice of location, it usually in the range of N100,000 to N300,000; the cost of putting up a fence in order to secure your land after purchase (you definitely don’t want to leave if bare); and also the cost of getting all the required documents such as certificate of occupancy (C of O), Governor’s consent, etc. From the Government. All these are some of the extra costs you definitely want to add to your budget from the onset to avoid a financial headache when buying land.
- Location of the Land
The importance of location in real estate purchases always seems to be overestimated. A lot of things are considered before making a purchase; one of which is choosing the perfect location for your land. The location plays a vital role while finalizing a property deal.
The price of land in Lekki would definitely be different from that of land in Ikeja. Another thing to be considered when choosing the location of the land is the potential growth of the area. You would want to ask yourself what the growth of the particular area would be like in ten to twenty years of time. In as much as land does not depreciate, having a strategic location would increase your chances of making more value on future sales.
- The Size of the Land
If you want to buy land in Nigeria, you have to consider the size of the land you are buying to make sure it is accurate to what a landowner tells you. For instance, if a landowner says the land is one plot, it is your responsibility to make sure the size is accurate. One of the ways to check the accuracy of the size of land before buying it is to involve a surveyor or an expert in the building industry. If the land has a survey plan, the surveyor will check or measure the land to make sure what one the survey plan is accurate. And in cases where the land has no survey plan, the surveyor will also check or measure the land to make sure what the landowner says is accurate, the surveyor will also help produce a survey plan for you after you have purchased such land.
- Land Appreciation
The land is arguably the only asset that does not depreciate over a given period of time. A plot of land in Lekki will always remain the same if not tampered with it is nature’s gift to man and does not depreciate buying land is one of the surest ways to invest in the real estate business. As rural areas develop into urban areas, those who have invested by buying lands in those areas tend to get five folds of their investment because the area is now developed.
This is why it is important to put enough consideration into the location in which you are buying land in Lagos or any other part of Nigeria. The rate at which lands appreciate and never depreciate is what makes it one of the simple ways to invest in real estate.
- Get the Necessary Documents When Buying a Land
Thus the most common way of proving ownership of land is in the production of a document of grant or title. This method entails providing any of the following documents; Deed of Assignment/Conveyance, a Deed of gift, a legal Mortgage, and a Certificate of Occupancy. No matter what you do, do not go into a deal in which the seller cannot provide proof of ownership. It is also in the same vein that you must ensure you have all the documents required after the transaction in order to avoid unnecessary issues with the government or land grabbers. Also, ensure to instruct your lawyer to perfect the title of the land or property.