One of the most difficult decisions for Nigerians (especially for Lagosians) is land investment.
According to a Lagos-based Real Estate Consultant at Zero616 Realty, “before buying Lands in Lagos, critical checks must be made to avoid bad investments. So many Real Estate investors have fallen victims due to negligence”.
In this post I will introduce you to important checks that will be helpful when making decisions.
Our FAQ Section
The FAQ section of the Zero616 website clearly outlines queries that numerous clients and prospects have consistently asked. Some of them are:
- What Title does the Land have?
A tale is being said of a man who bought a land (somewhere around Ajah, in Lagos State) from land owners with all papers complete. He built a house and moved into it. A few years later, he receive a letter from the Government asking him to vacate the premises as the house he built had been marked for demolition.
Unknown to him, that area had been marked by the government not as a residential area but as an industrial area. So it wasn’t acceptable to build a residential home.
This makes us realize that aside from land documents, several other things should be checked before buying a land.
- ARE THERE ANY ENCUMBRANCES ON THE LAND?
Ensure that the land is free from every known government acquisition or interest and adverse clams.
In this article, I will reveal these checks to you.
Check #1: Location.
The first thing to consider when you want to buy a land in Nigeria is Location.
This is the foundation to all the things you need to check.
Location defines future value of the land because a land in a developed area is more expensive than one located in less developed or developing area.
When considering location, the following DON’Ts are very important:
- For investment purpose, don’t buy a land with very little resale value.
- Starting up a business? Don’t buy a land in a completely isolated place.
- Want to build a house for residential purpose, don’t purchase a land you can’t build on.
Check #2: Neighborhood and Landmarks
As a Nigerian, before you buy a land, it’s important you find out who your neighbors would be.
Yes, find out.
Notable landmarks in the neighborhood are the key to development rate and rise in value of the land.
Make sure you look 5 – 10 years into the Neighborhood and try to figure out what that environment will become in future before you buy the land.
Also find out if there are notable Private or Government projects going on or if any has started to operate as this will let you know the development rate of the area.
A Neighborhood with up to 3 World Class Landmarks, whether it is in operation or under construction is good enough to go.
For example, if the Nigerian government or notable company like DANGOTE GROUP decides to construct a notable landmark like Shopping Complex or School beside your land, the monetary value of that land goes up.
Check #3: Environment.
It is very important to check the environment to know the land you want to use irrespective of its purpose as you might find it hazardous to live in a polluted environment.
You should also consider the safety of the environment where the land is and be sure not to experience seasonal flooding.
Check #4: Good Road Network.
This might not seem important, but it is.
You will not want to be forced to beg your neighbors so you can access your land so, a good road network is a very important check before buying land.
Check #5: Security.
It’s important to find out how secure the neighborhood you are planning on buying land is before you proceed.
Find out if adequate security is provided for that area. Also check and ensure the community itself has a way of solving major security challenges. Best way to find out is to ask people living around and within the community to know if the area is peaceful and protected from armed robbers and hoodlums.
Security is a very important issue and must be considered before you buy a land.
Check #6: Zoning Restrictions.
Zoning permits of the area is a very vital issue. It is important you know what government plans for that area.
As in the case of the man who bought a Land (earlier discussed), you may not be allowed to build a commercial structure where government has marked for residential building.
Check #7: Legal Documents.
After all the above lists have been checked, what’s next is to check Legal documents for the land, this also includes the Land Title.
Before you buy a land, you must check and make sure the land you plan to buy is genuinely registered.
The C of O (Certificate of Occupancy) is not the only document to check.
Other areas of concern include: Soil Quality & Composition, Size of the Land and Price of Land.
As a customer-centric team, we have have taken time to make a comprehensive list of major issues investors experience in the Real Estate sector. We hope this list would serve as a guide which would in turn, help you avoid major mistakes in the future.
If we have left out other issues or perhaps, you have questions based on experience, please let us know in the comment section below…. and don’t forget to share.