BUYING A PROPERTY IN LAGOS NIGERIA? 4 IMPORTANT THINGS TO CONSIDER.
In times past, it is not unusual to see people measure a person’s wealth by the amount of properties they own. Owning a property is considered one of the oldest forms used to determine how wealthy a person is in Nigeria.
There are peculiarities in the purchase of property in Nigeria, particularly in Lagos. The fact is that the state government is the owner of land and therefore any change in ownership or assignment, in case of a lease, should have the consent of the Governor.
Sale of real estate does not involve actual selling and purchasing. There is only the transfer of rights from one person to another. This transaction is usually called an ´assignment´. The seller assigns the rights to use and occupy the land to the buyer. After the transaction, the buyer applies for a new (statutory) certificate under his name. In this case, the seller acts as the assigner, and the buyer is the assignee.
At some point in life, one might consider oneself buoyant enough to be a landlord. There are, however, different reasons why people decide on buying a property, irrespective of the reasons there are things to consider when buying a property in Lagos Nigeria.
1. Purpose
Before you decide to buy a property anywhere in Nigeria, it is essential to have a purpose in mind. When buying a property, you want to get the best value for your investment. The question you need to ask is; “what purpose would the property serve?” This will help decide on many things when the purpose is clearly defined. The purpose can be commercial, or residential.
For commercial purpose, this means you are buying the property for investment. It is one of the smart ways to ensure quick returns on investment. You can decide to buy a structure and put it up for rental. By doing this, one is ensured a steady flow of income. This is one of the many reasons people decide to invest in property in order to expand their sources of income.
For residential purposes, buying a property, for many people, is topmost of their must achieved goals before retirement. It is the guarantee of having a roof over one’s head after retirement. Then, there won’t be a reason to panic about when the next house rent would be due or not. For some, it is just the fulfilment of living in your dream home and being a landlord. Whatever the purpose of buying a property is, there are still few things you would want to consider further like how secure the environment is, also the proximity of the property to basic amenities.
2. Budget
A budget serves as a guide, it allows you to make the best use of your funds. A budget should be considered when buying a property. It is not about just having the desire to buy a property; it is always important to carry out a research on the cost of buying a property and the extra expenses that are associated with it.
There are extra costs involved in buying a property, some of which are legal fees, Agency fees which may be about 5% of the cost of the property.
These extra costs should be added to the budget from the onset to have a smooth sailing in the buying process.
3. Location
A lot of buyers purchase properties without fully understanding the value of various locations. In Lagos State, for example, major parts of the Lagos Island are more expensive than some parts of the Lagos Mainland. Real estate investors need to have a grip on how an area can have a dramatic effect on value. It is important to put into consideration the location of where you are purchasing a property in Lagos or any other part of Nigeria.
4. Due diligence
Buying a property without carrying out due diligence is risky, hiring a lawyer is important. It is one of the common mistakes or traps people tend to fall into.
You need to learn everything and ask questions about buying a property in Nigeria. Seek professional services, know everything about the documentation involved in the process. Get enough information from your lawyer, ask questions when not clear, also don’t get emotionally tied up in the process (be prepared to walk away).
WHEAt Rydal Mews Limited, we will handle your buying process professionally and seamlessly.
