Here are Five Things To Consider When Buying Land In Nigeria, Number 1 is very important
At some point in your life, you have to consider being your own landlord/landlady. And you can achieve this through many ways but one option often considered by a lot of people is buying land to build their dream house(s).
Also, to the real estate beginner or pro, buying land for investment is considered one of the surest ways to make profits in the real estate industry. Topic for another day.
However, there are five things to consider when buying land in Nigeria :
5. PLOT SIZE:
You may want to know as a landowner to be the size of plot you need. This can be decided based on what you want to build on the said land.
You might have come across various terms such as, square meters, Square Foot, plots, acres, hectares etc. and probably don’t know the difference.
They are different land sizes and also play vital roles in the prices of a land
- TITLE: The Title of land affects its price. For example, a 1000sqm plot with the most secure title, Certificate of Occupancy (C of O) would be more expensive than another same sized plot in the same location but with a Right of Ownership (for Abuja lands), Excision (for Lagos and other places) and so on.
NOTE: Verify all land titles at the relevant authorities before buying! Don’t fall victim of land racketeers, 419, etc.
- LAND APPRECIATION
Another thing to be considered when choosing the location of the land, especially if you are an investor, is the potential growth of the area.
You would want to ask yourself what the growth of the particular area would be like in ten to twenty years time.
In as much as the value of land does not depreciate, having a strategic location would increase your chances of making more value on future sales.
Land in some locations appreciates faster than others. This could be predictable or due to presence of infrastructure.
For example, Ibeju Lekki Lagos is a classic example. Certain estate plots were bought for 8million Naira between 2019 to 2020, that same estate plots is worth at least 30 million Naira between 2020 to 2022, a whooping 22 million Naira return on investment in two years!
When Dangote refinery was announced to be sited in that area, lands further appreciated. Now the Lagos State government wants to site other laudable infrastructure in that area, like airport. This will skyrocket land prices even the more within a short time.
Such areas as Ibeju Lekki can be found in Abuja and many places in Nigeria.
It takes an expert in real estate to help you forecast profitable locations within any city to buy lands in.
Like many other real estate properties, the location plays a vital role in the overall value of the land over time.
The amount a particular land might be sold for is dependant on many factors, location included.
But your choice of location may be affected by your budget. For example, you can’t want to buy a land in Maitama Abuja, Banana Island Lagos, GRA Onitsha/Port Harcourt with a budget of Kubwa, Ikorodu, Enugwu-Ukwu/Elekahia respectively.
It is noteworthy to state that while lands situated in “hot” locations may be most expensive but more profitable returns on investment, lands in upcoming, cheap, “inside” locations can equally give you tremendous returns on investment over time.
In Abuja, let’s take Jahi as an example. Jahi is was a district no one wanted to live, say 10 years ago. But being sandwiched between Gwarinpa, Kado and Katampe means that this place would be a hit someday, and it is.
I learnt of a certain man who bought a plot in about 10 years or more ago in that location for 8 million Naira and sold it for 70 million Naira about 10 years on. That is 62 million Naira return on investment!
Apart from seeing location from the investment “eye”, how close the land from your workplace/business place, places of worship, schools for your children, shopping convienence, security and other amenities could help you choose location.
But choice of location is dependent on your budget.
- YOUR BUDGET
The budget is the first thing to be considered when buying land.
It does not matter if you have determined to buy a land in Abuja or any other part of the country, the most important thing is having a budget.
It is not about just having the desire to buy a land, the real question is do you have the budget for it? No matter the amount you might have saved, it is always important to make research on the cost of buying a land.
You can’t buy a land in Maitama with a Kubwa budget. You can’t buy a land in Onitsha GRA site an Enugwu-Ukwu land budget (no offence intended).
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