Lagos State is regarded as the best place to invest when it comes to real estate investment and it’s also the most delicate place to invest. But Real State is considered one of the most lucrative businesses to engage in, in the world. This is because purchasing land or building almost guarantees a steady profit, especially if the intended landowner buys from a reliable source with all the necessary information.
There
are steps you must take when buying properties in Lagos. The steps are crucial for
every first-time investor, especially.
We
would be giving a breakdown of all you need to know in this article, to avoid
falling into the hands of fraudsters or to avoid purchasing the wrong property at
a high cost.
LANDMARKS
AND THE NEIGHBORHOOD
Yes,
you should investigate who your neighbours will be before purchasing land in
Nigeria. Many people make this error while purchasing land.
The
landmarks in that neighbourhood determine how quickly an area develops and the
value of the land. Before purchasing land in that neighbourhood, you should try
to examine 5-10 years ahead to see what that place will become. Check to see if
any important government or private projects are now underway or have already
begun to operate, as this will indicate how quickly the area will expand. That
is why, before purchasing land, you must carefully analyze this. Another reason
you should examine this is to see if you can manage the development in the
neighbourhood when the time comes for those who need to buy and build a residential
house, but if you are purchasing to resell, the development will be a major
benefit. For example, some people may be unable to understand why others enjoy
having a jet constantly flying above their heads.
CHECK
THE ZONING RESTRICTIONS
It
is critical to understand the zoning permits of the area from where you are
attempting to purchase land because this will inform you of the government’s
plan for that location. You will not be permitted to construct a factory on
land that has already been designated for residential development by the
government. You should be aware of this in order to avoid future problems with
the authorities. Even if the location is zoned for residential construction, be
aware of the kind of structures that the government allows in the area.
Building a skyscraper in an area where the government says only bungalows are
allowed will cause problems with the authorities. If you can discover up to
5 World Class Landmarks in any neighbourhood, whether they are operational or
under development, you are fine.
ACCESSIBILITY
You
may argue that this is unimportant, but you will understand how vital it is to
verify if the property you purchased is accessible when you must now ask your
neighbour before you can access your property. Before purchasing a
land/building, always ensure that the location has a good road network that is
easily accessible.
CONSIDER
THE EXPENSE OF REPAIRS
When
you buy a new house, you will almost always have to make some improvements.
While fixing cosmetic flaws (a coat of paint or some wallpaper) is affordable,
making adjustments to kitchens and bathrooms may be costly. That doesn’t mean
you should pass on a house in need of major repairs, but you should consider
such prices when deciding if you can afford to buy (don’t forget to include
labour).
CHECK
LANDMASS
You
should also examine to see if the size of the land conforms to what the owner
claims. The only way to do this is to hire a surveyor to come out and survey
the area and take accurate measurements. Do not simply assume that because the
owner says it is one plot that it is one plot; instead, confirm. Even though it
will cost you money, it is preferable that you do it and you are certain of
what you are purchasing. That is why I advocate purchasing land from an estate;
it will save you a lot of time and ensure you are free of any Omo-Onile Wahala
(problem).
Legal
documents are essential while purchasing land in Nigeria.
After
you have verified the aforementioned list, the next item to look at is the
legal paperwork that the land has, which also includes the land title. When
purchasing land in Nigeria, you must ensure that the land you intend to
purchase is legitimately registered. Many individuals believe that the ideal
document to look for is the C of O. (Certificate of Occupancy). However, this
is not a good thing because any land with a C of O in Nigeria only has 100
years to be used before it reverts to the government. Assume that the land you
want to acquire has already been used for 30 years, which means you only have
70 years left. The Survey Plan, Deed of Assignment, Excision, and Gazette are
the most important documents to look for. With the help of these documents, you
will be able to determine whether the land is under government acquisition or
is free. You will also be able to determine what the land can be used for.
Regardless, you can still acquire land and register it yourself, but make sure
you are purchasing it from a legitimate owner.
WHEN
PURCHASING LAND IN NIGERIA, SECURITY IS CRITICAL
Before
purchasing land in a particular area, you should understand how secure it is.
Examine whether the government has given appropriate security in that area.
Check to determine if the community has a strategy for dealing with security
issues. You can also ask folks living in the neighbourhood if it is peaceful and
free of harassment from robbers and hoodlums. When purchasing land, security
is an important consideration. You wouldn’t want to be forced to leave a
particular area after paying for the property.
CHECK
FOR DEAL BREAKERS
It
is assumed that when buying a home in Nigeria, you should have your own “must-have and want” checklist before going house hunting. You should have potential
deal-breakers such as a home that needs to be replaced, a home in a high-risk
flood zone, and so on. Aside from that, when you move through the house, look
past the appealing finishes, such as high-end worktops, and check for evidence
of potential major concerns, such as cracks in the foundation or water stains
on the ceilings or walls.
THE
COST OF LAND
We
opted to postpone this until you have confirmed the other items specified
above, as they will influence the price of the land. Land without a title, for
example, cannot be priced the same as land with a C of O. Because each of these
titles costs money to get, the owner will undoubtedly add these costs to the
cost of the land. Also, the location and size of the land have a lot to do with
how much the land will cost. With this information, you can determine whether
or not the owner is overpricing the land.
ENSURE THE HOUSE IS INSURED
This
happened recently when a high rise collapsed in Lagos and the building has been
fully subscribed for. The money which is in dollars couldn’t be gotten back
because the structure wasn’t insured. One of the first steps to take when buying
such a humongous type of property is to check if the house or structure is
insured.
SERIOUS
CRACKS/STRUCTURAL INTEGRITY
Diverse
regions of Lagos have different soil properties; however, not all property
developers do soil tests prior to construction. Many people believe it is a
waste of money and wind up laying the incorrect kind of foundation. In regions
where the soil structure requires pile foundation, it is very typical for them
to simply sand fill, do raft foundation, and construct the entire house within
3 months (to reduce time and boost annual turnover). After a while, this
usually results in the building, tilting or sinking. Before purchasing, take a
step back and inspect the entire structure to ensure it isn’t already sinking
or leaning. In addition, look for large cracks in the walls (smaller cracks are
likely plaster cracks) and consult a civil engineer if you have any doubts or
worries.
-Isaac
Abimbade
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