Buying a land is regarded as one of the oldest forms used to determine how wealthy a person is in Nigeria. In the past, the amount of land a person owned was a yardstick used to measure a person’s wealth. In recent times, people now understand that there are a thousand and one ways to determine this. However, the value placed on land cannot be undermined. For some, buying a land is one of the goals to achieve before a certain age or retirement. 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.
No matter the time you consider yourself buoyant enough to be your own landlord, there are definitely certain things to consider when buying a land. There’s a lot to consider because buying a land does not come at a penny cost, and so to avoid fraudsters and at the same time make the best decision on your investment consider these great tips.
Your budget is the first thing to be considered when buying a land. No matter the location you choose to buy a land in Lagos or any other part of the country, it is very necessary that you have a budget. Do you have a budget for the land you desire to buy? It is always important to make research on the cost of buying a land and the extra expenses that are associated with it.
A budget will help you to make the best use of your funds. For instance, the extra expenses you might want to consider when planning your budget are; legal fees, agency fees, survey plan, the cost of putting up a fence in order to secure your land after purchase (you don’t want to leave it bare); and also the cost of getting all the required documents such as Certificate of Occupancy (C of O), Governor’s consent etc. from the government if the land doesn’t already have one.
All these extra costs must be added to your budget from the onset to avoid financial issues when buying a land.
Location Of The Land
There’s more to just buying land. One of the things to consider before making a purchase is choosing the perfect location for your land. Just like many other real estate properties, location plays a vital role in the overall value of a land. The amount a particular land might be sold for is dependant on many factors as earlier stated, however, one of those factors is the location of a land.
The cost of a land in Lekki would definitely be different from that of a Land in Ikeja. One other thing to consider when choosing the location of the land is the potential growth of the area. You should ask yourself what the growth of the particular area would be like in ten to twenty years time. Inasmuch as land does not depreciate, buying land in a strategic location would increase your chances of making more than double profit on future sales.
Before buying a land, you should understand the meaning and difference of basic real estate terms. You might have come across various terms such as plots, acres, hectares, etc. and probably don’t know the difference. They are different land sizes which play vital roles in the prices of land. It is the same as buying a unit product for let’s say N20, buying 6 units of the same product means N20 multiplied by 6. This means the total price for 6 units of the product is N120. You have to be conversant with the appropriate size of the land, hence, familiarizing yourself with the definitions is a good way to start.
A plot is described as a marked out piece of Land for the purpose of farming or building. A plot is an arbitrary term used to describe a land division set out for developmental purposes. It is important to know the size of a full plot in order not to be duped. The size of a plot varies for different reasons but according to Nigeria’s land division, the recommended plot for a house construction is 50 x 100ft.
An acre is bigger than a plot. It is almost equivalent to the size of a standard football field, An acre is a standard unit of measurement used by most land sellers. It is one of the land sizes to consider when buying a land. Identifying an acre by its measurement is easy, it is the product of a rectangle plot of land that is about 4,046 square meter or 43,560 square feet. An acre usually consists of 6 plots, each measuring about 60 x 120ft. However, an acre is roughly 40% of a hectare.
A hectare is the largest of the three sizes. It measures about 100m x 100m or 328 feet x 328 feet or 10,000 square meters. It is about two and a half acres which are usually about 15 plots. What the size of a hectare should be, has been a bone of contention between prospective buyers and real estate developers.
It is important to note that these measurements vary across Nigeria. Though the above measurements are standard, due to factors like land location, possession, and circumstances leading to the transaction, there are different variations in measurements.
A land is arguably the only asset that does not depreciate over a given period of time. A plot of land in Lekki will always remain the same if not tampered with. It is nature’s gift to man and does not depreciate. Buying a land is one of the surest ways to invest in the real estate business. As rural areas develop into urban areas, those who have invested by buying lands in those areas tend to get five folds of their investment because the area is now developed.
This is why it is necessary to put enough consideration into the location in which you are buying a land in Lagos or any other part of Nigeria. The rate at which lands appreciate and never depreciate is what makes it one of the simple ways to invest in real estate