In this report, Okechkwu Nnodim writes on some of the basic information you need before investing your hard-earned money on any piece of land in Nigeria.
Shelter, as a basic necessity of life, and this has definitely increased the desire of most individuals to own their private homes. This development has made many fall prey to the tricks of realtors and land speculators/omo-oniles, especially in the cities and major towns.
Many individuals that invested in landed properties, have ended up telling sorry stories of how they were either defrauded or their properties sold off to another buyer before they could start building on the land. The development, however, is not peculiar to individuals but also affects corporate bodies, experts say.
Below are important details you should know before you buy that piece of land, according to experts:
Location of the land
Having a location in mind will guide planning. This will enable the prospective buyer to project an amount for the land, decide on the class of people he wants to live with and determine the minimum size or lot needed for his building. According to experts, choosing a location will enable the buyer determine what matters most to him and his family, depending on his status.
Developed/underdeveloped land
Developed lands, experts say, are properties which have basic utilities like roads and other buildings close to them. Underdeveloped lands, on the other hand, are properties that do not have these amenities. They note that the investor must understand what is needed to venture into an underdeveloped property, as the cost of developing such a piece of land will be higher than the former. They explain that the ability to know what your priorities are and what money you have to spend is essential to determining what type of property fits your project best.
Investigate properly
Experts note any interested investor on landed properties must avoid hasty purchase of land. They advise that you should do a couple of visits and investigation before investing your money on any piece of land. In cities, land speculators and illegal dealers abound in a larger percentage compared to rural areas.
The Director-General, Lagos Chamber of Commerce and Industry, Mr. Muda Yusuf, notes that speculators and illegal dealers should be avoided. He says, “Of course it is difficult to know genuine landowners most times. But thorough investigation and consultations with both the appropriate authorities and professionals in the industry will guide you when investing in a landed property.
“To avoid being duped, involve a lawyer, get a professional and buy only when you are fully satisfied with what you have seen in terms of documentation and other things.”
Get C of O
Get a Certificate of Occupancy from the state government before doing any building on it.
It is important to know that land is cheaper in rural areas than in urban centres and it keeps appreciating over time. Experts note that investors can buy from original landowners and later apply for a C of O from the state government to make it official if the original owner had not done it yet.
Environmental hazards/govt demands
Try to find out if there are any environmental hazards like toxic wastes, chemicals or others since this can affect your health. The Chief Executive Officer, Reo-Habilis Construction Limited, who doubles as the President, Building Collapse Prevention Guild, Mr. Kunle Awobodu, in an interview with our correspondent advised that you talk with your real estate professional and your local government authority regarding what factors you might need to take into consideration before you build.
Experts note that environmental factors could restrict where you construct your building, adding that future developments in the area could lead to price appreciation or depreciation of your property. They advise the prospective land buyer to find out the minimum distance that his home should be built from the stipulated property line as given by the state or local government. This is to prevent future demolition of his property due to inappropriate planning.
Join a group if possible
Experts say buying in a group has its advantage as two good heads are definitely better than one. They note that dealing with individuals you trust or buying with a group of fellow buyers you already know can be safer. For example, buying from a religious group, work or family can be safer when buying a piece of land. They however stress that if you are going to buy with a group, choosing the members of that group is even more important than choosing the land.
Buy within your means
Experts note that prospective landowners should try and save up money and pay cash for the land after carrying out all necessary investigations successfully.
Experts note that 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. According to them, even if the seller will take 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.
Costs of building
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.
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