BUDGET
We understand that you’re familiar with the concept of budgeting. However, it is important to recognize that, even with this awareness, delving into the process of purchasing a land requires a focused and a good strategic approach. Whether you’re planning to buy land in Lagos or anywhere else in the country, having a budget is crucial. It’s not just about wanting to buy land; the real question is, do you have the money for it? No matter how much you’ve saved, it’s essential to research the cost of buying land and the extra expenses that come with it.
It is not just aspiring to own a land but more importantly, ensuring you have the necessary funds. Some extra costs to consider when planning your budget include legal fees, which are usually about 5% of the land cost; agency fees, which are also around 5% of the land cost, and survey plan fees, depending on where you want to buy. This will help you in securing a land.
LOCATION
A well-chosen location can lead to significant appreciation over time. It’s wise to consult Realtors and Agents to provide you with a list of locations tailored to your preferences. Additionally, considering the future growth of the area over the next 10 to 20 years is essential, as a strategically chosen land can offer better resale value in the long run.
Next, consider how the place where the land is located might grow in the future. Think about what changes could happen in the next 10 to 20 years. Choosing a Land that’s likely to develop can make it easier to sell later for a better price whether developed or a bare land, as the value of land usually appreciates over time.
LAND SIZE
Determine the size of the land that aligns with your goals. Consider your intended use whether residential or commercial, to ensure the size accommodates your envisioned project.
Land is measured in various terms like plots, acres, and hectares, so it’s essential to be familiar with these terms.
A plot, typically 50 by 100 feet in Nigeria, can vary by state. It’s crucial to understand the standard size to avoid scams when purchasing property.
An acre comprises six plots of 60 x 120 feet each. In Lagos State, the average plot size is 60 by 120 feet, resembling a football field but only making up about 40% of a hectare.
A hectare is equal to 10,000 square meters or approximately 15 plots. However, in some Nigerian states, a hectare may consist of 10,000 square meters, equivalent to around 11.1 plots. Clear communication between the buyer and seller is essential to ensure a shared understanding of these measurements.
LAND APPRECIATION
If you invest in buying a land to build a home or as a business investment, the land value increases over time. In cities like Lagos and commercial areas, the land’s quality typically improves or stays the same if left untouched. If you’re getting land to build your home, you’ll benefit from its value increasing as the area becomes more populated and developed.
For investors, the value of land increases as development grows, and more people want to rent or buy property there. Despite current inflation, some have been hesitant to invest in real estate due to uncertainties.
LEGAL DOCUMENTS
Verify the authenticity and legality of the land title. Engage a legal and professional realtor to verify the documents, ensuring they are legitimate and meet all legal requirements.
Emphasis on Land Documentation:
In Nigeria, the process of land acquisition can be complex, and fraudulent practices exist. Emphasize thorough due diligence on land documentation. Request a Certificate of Occupancy (C of O) or Governor’s Consent, survey plan and ensure all necessary permits and approvals are in place. This step lessen the risk of land disputes and legal complications in the future.
Payment Method
Clarify the payment structure with the seller. Whether outright payment or installment plans, understanding the terms is crucial. Be cautious of transactions that lack transparency or demand large upfront payments without proper documentation. Make sure you have proper records for all transactions when you buy, including the land cost and survey fees. Even if your payments are installment, it’s important to document all of them to prevent future problems. Instead of using cash, which might lead to losing money to fraudsters, it’s better to pay through cheques or bank transfers. This way, you can easily keep track of your payments if any issues arise with the land purchase.
Having a lawyer involved is important, they can prepare a purchase receipt that everyone signs, acknowledging payments through the bank. This prevents the seller from denying the amount, timing, and purpose of the payments.
Paying through bank channels helps you track payments and serves as evidence in case of issues it is more reliable than paying in cash, where the seller could deny any knowledge of the transaction.
CONCLUSION
Buying land in Nigeria requires careful consideration. More than just the attraction of a good investment, it’s crucial to grasp details like budgeting, location, land size, appreciation, accessibility, security, and especially, having complete land documentation. This ensures a safe and fruitful venture. Involve experts, do thorough research, and start your land-buying journey with confidence.
