If you are someone like me who loves real estate deals, you will also want to know what to consider when buying a landed property in Nigeria.
Knowing the basics surrounding land acquisition in Nigeria is helpful for citizens living in the country and for Nigerians in the diaspora.
That is why I want to share my experience as a real estate analyst so you can make an informed decision.
Aside from knowing what to consider when buying land in Nigeria, I strongly recommend that you also read my frank advice about how to prove ownership of land and property in Nigeria.
Without further ado, let’s go into our discussion.
Mistakes To Avoid When Buying a Landed Property
When you have decided to invest in landed property in Nigeria, there are certain mistakes you’ll want to avoid right off the box.
As you must know, buying a landed property is both capital-intensive and a big investment, so you’ll want to be sure you do everything right.
Here are four things to avoid when buying a landed property:
1. Not Checking the Neighborhood
I always advise people never to take the words of an estate agent or land seller for it when they want to buy any property, including landed property.
Before buying a property, you should know that you're not just buying a mere land or house—you're also buying into a neighborhood.
The type of people that have settled in a neighborhood will determine how that place will be in the next few years.
The more reason you shouldn’t be carried away by fair bargains or cheap cost of a land or house.
You cannot afford to pitch your tent with people lower than your income class or thinking mode. It will give you a lot of heartache in the future.
Also, be sure to check the crime statistics for the neighborhood. It is very important! You can find this information online or through your local police department.
I remember years ago when a friend rented a beautiful apartment in the heart of Mushin, Lagos. The house was modern and beautiful, but the neighborhood was nothing to write about.
Sadly, within a few months of moving into the apartment, robbers besieged the apartment in the middle of the night to rob them at gunpoint.
My friend and his family were forced to vacate the apartment for a more befitting accommodation and forfeited the remaining rent.
Check out the neighborhood before making an offer on a property. Drive around the neighborhood at different times of day and week to understand the traffic and activity level.
Talk to some of the neighbors to get their impressions of the area.
2. Not Getting a Home Inspection
Just because a landed property looks good doesn't mean it's in perfect condition. It's always a good idea to ask for an inspection of the area at different times before you make a final decision to pay.
If you doubt the good prospect of a landed property, don't make guesses or rationalize based on your inexperience.
Also, don't jump on a land offer because the cost is affordable or attractive. One factor that makes me curious about buying a piece of land is if the cost is too cheap or affordable.
I advise you to employ the services of a good land and property valuer before ever making any land purchase.
Let them evaluate if the land is a good deal. Know if the area is waterlogged, which may require enormous capital to do sand filling and piling.
A property valuer will look for any problems with the land, such as topography problems, accessibility, sand-filling, and what have you.
Don't just close your eyes to the services of these professionals and think it's an unnecessary expense. It will save you from a lot of heartache.
3. Not Considering the Future
Foresight is one of the best guiding factors when buying a landed property.
My mother-in-law is always our go-to guardian when it comes to property-related issues.
We humorously refer to my mother-in-law as "Minister of Works and Housing" because of her experience in land and housing schemes.
Her judgment about land and housing issues is near-perfect. I remember she bought some plots of land in a developing estate in Lagos a couple of years ago.
She bought half a plot of land in two different locations within that estate, and each half a plot was bought for roughly Ten Million Naira (N10m).
When we expressed shock at her action, she made a statement that showed she had foresight regarding property acquisition. She said, "I didn't just buy a land, I bought the future"!
True to her words, fast forward 7 years after she bought the land, and the place has become one of the luxury estates around the area, with half a plot of land going for fifty million nairas (N50m) upwards!
This is why I always insist that when you’re buying a landed property, it’s important to think about the future.
For instance, if you plan on starting a family soon, you'll want to ensure the property you purchase has enough space for your future needs.
Similarly, if you plan on retiring soon, you may want to look for a property that doesn't require much maintenance.
Thinking about the future will help you find a suitable property that will meet your needs for years.
4. Not Hiring a Real Estate Agent
My closest childhood friend is an experienced realtor. He is the CEO of Realty Point Limited in Lagos, Nigeria.
In one of his books, I once read how he encouraged people to use the services of professionals to avoid being shortchanged by cons in the industry.
I remember him saying that most people run away from the services of experts when buying land or a house or when they start building because they think such services might be too pricey.
However, he said that when you properly analyze how much loss of money, time and peace of mind you would have prevented yourself from using these professionals, you would realize it's not at all pricey.
So, if you want to buy land in a good place and be rest-minded, I believe if you're not working with a real estate agent, you're missing out on a lot of helpful advice and guidance.
A real estate agent can help you find properties that meet your specific criteria.
They can also provide valuable information about neighborhoods, land inspections, and negotiation strategies.
Also, a real estate agent can help you beat the complex process of buying a landed property.
It's such services that Real Estate companies such as Porch Integrated Services Limited stand out. They are on top of their game when helping people locate affordable land and housing investments.
How can I Check If land Is real In Nigeria?
Many people in Nigeria are searching for land, whether to build their dream home or as an investment opportunity.
To verify the authenticity of the land, the first step is to obtain the title deeds from the landowner or their representative.
Once in possession of the title deeds, it is crucial to take them to the local government office for registration. This registration proves the land's legitimacy and establishes you as the rightful owner.
Another reliable method to confirm the authenticity of land in Nigeria is to commission a survey. This survey provides an accurate depiction of the land and its boundaries.
It is imperative to ensure that a reputable company conducts the survey, as fraudulent surveyors seek to deceive individuals and take their money.
With the title deeds and survey in hand, the next step is to visit the local land registry office and officially register the land in your name.
Completing the registration process at the land registry office further solidifies your ownership and provides additional evidence of the land's legitimacy.
When contemplating the purchase of land in Nigeria, conducting comprehensive research is crucial to prevent becoming a victim of scams.
Use the steps above to ensure you purchase genuine land in the country.
Which Areas Are Best To Buy Land in Nigeria?
Nigeria, situated in West Africa, holds the status of being the most populous nation in Africa and the seventh most populous country worldwide.
Nigeria ranks the highest in terms of economy in Africa and as the 24th largest globally. What's more, the country is rich in natural resources, including oil and natural gas. It is also rich in coal, limestone, niobium, lead, zinc and arable land.
The real estate market in Nigeria is very vibrant, and there are many opportunities for investors to make a profit.
However, there are a few things to consider when purchasing land in Nigeria.
Begin your land-buying journey by researching the various areas available for sale. Numerous websites list land for sale in Nigeria.
Determine the purpose of your land purchase as the second step. Are you buying for investment or personal use? If it's for investment, research the market value and potential appreciation. Choose an area close to amenities like schools, hospitals, and shopping for personal use.
The third consideration is the price of the land, which can vary significantly in Nigeria based on location. Negotiate prices from different sellers before making your purchase decision.
Delve into the legalities of land acquisition in Nigeria as the fourth step. It's crucial to have a lawyer draft the purchase contract to ensure all legal requirements are met.
The fifth and final consideration is whether to hire a real estate agent. This is where a real estate agent comes handy in navigating the purchase process and offering insights into the Nigerian real estate market.
With all said, never rely on word-of-mouth by anyone who claims to be a real estate agent when you are about to buy land.
I suggest you carefully follow the five steps above and be personally available to do a site inspection.
In a rare case, if you are not in the country and want to buy your land all the same, there is nothing to worry about. All you need to do is find a reliable and reputable real estate company to transact your business with, as I will share with you below.
What Is The Best Real Estate Company I Can Buy Land From in Nigeria?
There are many different real estate companies in Nigeria that you can buy land from. However, not all of these companies are the same.
Some are better than others regarding the quality of the land they sell, the price, and the level of customer service they provide.
If you're looking for the best real estate company to buy land from in Nigeria, here are a few factors to consider:
1. The quality of the land.
When buying land, you want to get value for your money by getting the quality land you deserve.
The land should be level, debris-free, and located in a desirable area. A good real estate company will have lots that meet these criteria.
I mean that a good real estate company will not take you to a bad location while trying to convince you to buy land in an area that cannot develop many years from now.
2. The price of the land.
Another way to know a good real estate company is to consider the process by which they are offering their land for sale
Of course, you'll also want to consider the land's price when choosing a real estate company to buy from. A good company will offer competitive prices on their properties.
This is not to say they will send the land ridiculously cheaper than other companies are offering it, but they will be willing to break the payment into something affordable with many prizes to encourage ease of payment.
I know many real estate companies in Nigeria that make buying land in luxury estates so affordable because of the payment plans they offer.
You can also find out the other real estate companies that sell land around the same place you are interested in to be double sure that you are not just dealing with a ghost company.
These companies know themselves, and you can learn about the authenticity of a landed property in an area from many companies before you use any particular company.
3. The level of customer service.
The level of customer service is one of my best ways to know the genuineness of services rendered by any company.
Especially in Nigeria, an average organization has zero reputation when it comes to customer service. It doesn't take so much to prove this point.
All you have to do is attempt to call any of the customer service lines the put in their flyers or social media page, and you will get no response. Even at best, when anyone picks up your call, they won't be able to provide you with any useful information.
So, one way to know if a company will deliver on its promise is to test it very well on its customer service. Are they as good as they project themselves to be? If not, then that's enough caution that you should not use such companies.
When buying land, you want to work with a company that is responsive to your needs and questions. You should be able to contact a representative easily, and they should be happy to answer any of your questions.
If you're looking for the best real estate company to buy land from in Nigeria, keep these factors in mind, and you'll be sure to find a company that can provide you with the land you need at a price you can afford.
Conclusion
I believe you now know the important things to consider when buying a landed property in Nigeria.
However, suppose you want more information about properly searching land or site selection for your next building project. In that case, I recommend reading my guide on proper site selection in Nigeria here.
Before you sign out, please avoid the mistakes many people make while buying land in Nigeria.
Also, don’t hesitate to employ the services of experts, such as good and reputable real estate companies.
In the long run, it will save you from falling into the wrong hands and prevent unnecessary heartache.
Once you are ready to start building, don’t hesitate to read my comprehensive guide on the best way to go about your building project.
I wish you well!