by PRO, Ragnarok Property Dev Ltd – Oluwole Ifeoluwa
Buying a home is considered a key aspect of the Nigerian dream. It is a big success and a whole lot of accomplishment for an average Nigerian.
This is why it is important to carefully take the right steps while buying landed property because land and home buying do not come at a kobo cost, be it a serviced plot of land or a luxury home.
It does not matter if it is your life savings, surplus cash, or retirement plan, you would want to guard your money against scammers while you make the best decision on your property investment.
Here’s what to do;
A lot of people make the mistake of putting budget as the last step to take while buying landed property, and this eventually throws all their initial efforts down the drain because budgeting should be the very first thing to do.
The price of a landed property varies according to its size and location. The same size of land in the Ikotun part of Lagos state will not be the same as the one in Ibeju-Lekki.
You should know that a proper budget allows you to make the best use of your funds while buying a landed property and still cover extra expenses that are associated with it.
What extra expenses right?
There are a lot of unavoidable extra expenses associated with buying landed property in Nigeria, some of them include:
(a). Survey Plan: This fee depends solely on the location of the landed property and is usually between N150,000 to N300,000.
(b). Legal Fee: Most of the time, this costs 5% of the actual land cost.
(c). Agency Fee: Usually this fee ranges between 5% to 15% of the actual land/house cost.
(d). Cost of Securing Your Documents: In Nigeria, you’ll be required to pay a fee at the Land Registry before you can perfect your documents. Documents like your C of O etc.
Therefore, you should first determine how much you are willing to spend during the whole process of buying the property because not all landed properties have an all-inclusive payment like “Westbury Homes” and “The Alverton Estate”.
It is important that you decide on where exactly you would like to buy the property as this is sometimes a very hard decision to make.
But as hard as this decision is, it is one of the most important factors that will determine how rapid the property will appreciate in a few years’ time, especially in some parts of Lagos State.
So, if you’re hoping to sell the property in a few years, then location should be a strong consideration.
A good location can mean different things to different people, but there are also essential factors that determine the value of a property.
Depending on your personal needs and preferences, you may not be able to buy a home with all of these factors. And that’s OK. After all, a home is much more than just an investment.
However, the next time you’re shopping for a new property (for whatever purpose), keep the following factors in mind:
(a) Neighborhood Safety: The safety of a neighborhood is a very important factor when looking to buy a landed property that you intend to live on, especially if you have children.
Here are some things you can look into to help you get a better sense of whether or not a neighborhood feels safe:
*Street Lighting – An adequate amount of street lighting can help you feel safer in a neighborhood, especially at night.
*Crime Rate – A neighborhood that has a low crime rate is an inviting and safe place to be outdoors and commune with your neighbors.
Crime statistics are readily available for many parts of Nigeria, and along with demographic stats, they can paint a pretty vivid picture of how safe a neighborhood or location is likely to be.
Sometimes all you’ll need to do to find them is to search the internet for ‘crime map [state or city name].
You can also do a little investigation by asking about the crime rate from the nearest police station in that location or from the local watchmen in the neighborhood.
Flood: While buying landed property, especially in Lagos, look out for areas that are prone to flooding during raining season, you can ask people in the area or look around for erosion pathways and marks of water on buildings.
(b) Centrality: While buying landed property in Nigeria, Lagos especially, Consider the proximity of the location to your children’s school and your job. Proximity to important commercial areas such as malls, markets, schools, religious centers, and motorable transportation to those places. For example, The Alverton estate is located on the Lekki – Epe expressway beside Fara Park sangotedo, with close proximity to Shoprite, Sangotedo market, Sky mall, Green springs school, Blenco supermarket and so many other developments.
(c) Land Appreciation: As rural areas develop into urban areas, those who have invested by buying properties in those areas get over 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 land appreciates is what makes it one of the most profitable investments ever.
You would definitely love to buy a landed property in a location that is rapidly developing and has a bright future.
Fast selling and developing location that will allow your property to appreciate easily and faster.
In Lagos state, places like Abraham Adesanya and Ibeju-Lekki are hotcakes and have been projected to have a great appreciation level within the next few years.
This is more focused on buying land to build a home. If you are thinking of building your dream home and becoming your own landlord, you definitely want it to be in a conducive area.
If it is your getaway place after retirement, you surely want to have rest of mind and peace.
This is why it is important to consider the area’s serenity before buying a property there.
Do not buy landed property beside a school or training center because there will be so much noise.
Also do not even consider a commercial environment or an industrial area, which can be a potential health hazard in the future.
3. CONTACT A REALTOR
Well, not just any realtor, make sure you contact a trusted and reliable Real Estate Company like Ragnarok Property Development Ltd that will deliver to you quickly and swiftly without stress and without you having to break the bank.
It is important to do your research right, ask around from people who have acquired good luxury landed properties recently, and inquire about the company they bought their property from.
Verify about the company online, read about the services and products they offer then put your Lawyer to work by asking him to verify the authenticity of the company through legit means.
Once all these are done, u can then place a call directly to the company to make your intentions known.
4. VISIT THE PROPERTY AND DO A COMPLETE WALK-THROUGH.
Now, this is also very important in Nigeria, Pictures and videos alone are not enough when it comes to making a decision on buying a landed property.
A lot of fake companies put fake pictures on the internet to scam a lot of careless buyers who did not deem it fit to go on a physical site inspection before payment.
Some even lie that the property is 100% dry land while it actually is water land.
So as not to fall victim to scammers in Nigeria, especially Lagos, it is important to see the land with your “korokoro” (real) eyes before you pay.
For instance, Westbury Homes is a residential estate located in bogije, Ibeju-lekki, with 100% dry serviced plots of land. The Alverton Estate is also a residential estate comprising of 2 & 3 bedroom terraces with maid’s room, sitting on dry land in sangotedo, Lekki – Epe expressway.
Even if you are 1000 miles away from your dream homestead, go and visit the property in person or send a trusted friend or family member to do it for you.
Make sure to check how accessible is the property from the main road? Are there other developments surrounding the estate?
What infrastructures are the developers promising and if you’re buying a house, what is the delivery date?
5. CHECK DEED RESTRICTIONS.
This is very common to serviced estates all over Nigeria.
You might want to check for any deed restrictions that may limit what you can and cannot do on your property, and find out exactly how binding these limits are.
For example, The Alverton Estate as well as Westbury Homes do not have any deed restrictions and are simply in conformity with basic estate rules.
There are so many estates in Nigeria where you cannot build some particular types of houses in them, houses like “face me I face” you, winged apartments, skyscrapers, shopping complex, and so on, so make sure you clarify this before you pay.
6. VERIFY THE LAND TITLE
There are different types of land titles in Nigeria and you might just want to purchase a property with an authentic title like The Alverton Estate and Westbury Homes, then contact your lawyer to verify it.
Here are a few land titles common in Nigeria;
(a) Governor’s consent; is consent obtained from the governor of a state on a land transaction, without this consent, claiming ownership or selling the land will be deemed illegal in the eyes of the government and the law.
For example, the land title for The Alverton estate in sangotedo Ajah is Govt’s consent.
(b) Certificate of Occupancy; This is the certificate you get once the government has leased land to you as an individual or company.
They lease out the land for 99 years after which the owner will go back to renew the Certificate. For example, Westbury Homes located inside beechwood estate, ibeju is a C of O property.
(c) Gazette; A gazette is a record book owned by the government showing the communities or villages that have been granted excision and the number of acres or hectares of land that the government has given to them.
It is within those excised acres or hectares that the traditional family is entitled to sell to the public.
7. PAYMENT; when it comes to payment, you must have decided and been sure that the property you have chosen is what you want and that it is good for you and for the purpose for which you want to buy it.
After this, you can ask if the seller of the property has a flexible payment option or if it’s only outright payment.
Ask if there are any other hidden charges attached to the property and be sure the property has not been used as loan collateral.
If the property is free from all these then you can begin the payment procedure.
If you’re buying the property from a Real Estate company, do not pay into someone else’s account, make sure you pay into the company’s official account unless the management tells you to do otherwise.
These are the important factors you should consider when buying landed property in Nigeria, especially Lagos.
For consultation and buying of land and terraces, contact us either on our social media platforms or give us a direct call.
All the best in your home buying and investment journey.