10 Things To Consider Before Buying Land Property In Nigeria
Many investors that buy landed properties, have ended up telling sorry stories of how they were either scammed or their properties sold off to another buyer before they could start building on the land.
Here are some important tips you should consider before putting down your money for that piece of land:
- ==> The cost of land is significantly lower in rural areas than in most urban centres but the rate of appreciation of your investment is way lower too.
- ==> Investments in landed properties will continue to appreciate as the years roll by as long as population keeps increasing.
- ==> Investors want to get the best value for their money. And this often translates to the best return on their investment. With this in mind, you want to evaluate the potential growth in investment in a particular area before you throw your hard earned money at it. Growth range is between 5%-30%. Why get less when you can get more? Choose your investment location wisely.
- ==> Before you make payment for that land, be sure to find out that there are not toxic wastes, chemicals or companies producing these nearby as these compounds may affect your health negatively.
- ==> Don't be hurried or pressurized into buying a land. Make sure you visit and carry out thorough investigations so as not to get your fingers burnt. Before you buy a plot of land or a completed building, be sure to conduct what is called a "search" on the property. This is the process of verifying from the state government if the property in question is within government acquired properties or not and whether there are any pending litigation or other issues on the property. Most times when the price is too good, it is most likely too good to be true.
- ==> Doing business with people of verified trust or buying with a group of other investors you already know may be safer.
- ==> As an investor, you can also purchase land from someone who as already gotten the C of O. This is referred to as land transfer. It is advisable to make sure you have acquired the C of O before investing heavily in your land property.
- ==> After knowing what land you want to buy, and undertaking all the necessary investigations, the next thing to consider is the cost involved to develop it before you make any offer. This is important because the ability to determine the amount needed to develop the land will determine if you will invest in it or not. Experts say it is advisable to buy a piece of land that you can develop, rather than investing in one which you may find difficult to build on. This however, depends on the reason why the investor is buying the property.
- ==> Prospective landowners should try and save up money and pay cash for the land after carrying out all necessary investigations successfully. Loans are difficult to get, stressful, expensive, and at times, they multiply the things which can go wrong in the process of buying a piece of land. Even if the seller takes gradual payment, there is always a tendency for the land to be more expensive and this may consume time and energy. Therefore it is better to save up a reasonable amount of money and use this to get your own land.
- ==> Remember that all lands belongs to the state government from which you get issued a C of O valid for 99 years.