fbpx
Land for Sale: How to choose where to buy land

Land for Sale: How to choose where to buy land

Buying land is always hot. Millionaire Real estate investors say the best time to buy land was five years ago and the next best time is today. But, before you go bringing out your cheque books, you need to understand the land business. Buying and selling land is good business if done correctly. The following are important pointers to help you determine where to buy land.

Establish what you want to use the land for

People buy land for different purposes like buying a house, for commercial use, land flipping, agricultural use, a recreational park etc. To help you get started, answer the following questions:

  • Set a clear and concise objective for buying land. What do you need the land for?
  • Determine the most suitable location for your chosen venture.
  • Define the size required, boundaries and access to and from urban centres.
  • Verify the title documents of the land. Choose lands with proper land documents.
  • Acquire basic information about the area. Investigate the region and establish contact. Avoid lands with litigation issues and Omonile wahala.
  • Identify the problems involved in acquiring the land and evaluate the risks involved. Identify possible solutions before moving ahead with the transaction. For instance, if you decide to invest in a land yet to be excised by the government, take into consideration the consequences should the government decide not to excise the land. All investments have a degree of risk. Choose your risks wisely.
  • Distinguish between long-term ventures and short-term ventures. For instance, buying land for agricultural use is a longterm venture. Depending on what you intend on planting, it could take as long as five years to see returns on your investments. Land flipping, on the other hand, could reap a good return on an investment after a year or two.
  • Think long-term. It is always more profitable to buy land where people will settle in three to five years from today. The challenge is, no one knows for sure where people may decide to settle in the future. However, they are predictive economic factors that could help determine where the next people will migrate to.

Once you’ve decided what you need the land for, do your research on the size required and the right location. For instance, if you’re looking to buy land to build a commercial building, you’d need to choose a location where businesses would want to pitch their tents. In the same vein, if you want to buy land to plant cocoa, the first thing to consider is choosing the location with suitable weather for growing cocoa.

Although, millionaire investors advocate for buying land, having a purpose for buying land is the first step in the right direction.

 

location-map-house

 

Determine the basic features of the type of land you need

To get the best land deal in the market, it’s necessary to take into consideration certain features like the following:

  • The land resources, climatic conditions in the area, soil type and landforms. Coastlines in Lagos are prone to flooding during the rainy season. Before buying land, it’s important to examine the soil type and the nature of the land. Would you need to sand fill before building? How much clearing do you need to do?
  • Examine and verify the survey plan. Ensure the land you want to buy falls within the coordinates of the survey plan. If you’re buying land in Lagos, verify the survey plan at the Surveyor General’s office at Ikeja to make sure the assigned purpose of the land is the same as your objective. For instance, if the land had been assigned for agricultural use only, you cannot buy the land if your objective is to build a residential building.
  • Take into consideration the existing infrastructure. Is there any access to the highway? What is the distance to the closest urban centre?
  • Consider the land tenure system in the locality and how it can affect your rights to use the land. There are certain areas in Lagos that require a buyer to see the Oba of the local town before buying land in the locality. Take all these into account when choosing where to buy land.

 

READ MORE: Benefits of Investing in offtake real estate

 

Put your finances in order

Finances are a significant determining factor in determining whether or not you can acquire a property. It’s no use going through all the trouble in making sure the land you want to buy is a perfect fit if you don’t have the means to finance the project. The cost of land isn’t just limited to the cost of land per square meter. There are hidden factors that cost money and should be taken into consideration like the following:

  • Gathering information and researching on the land in itself costs money. The cost of verifying land documents, the transportation cost of going for a site inspection and cost of inviting a surveyor to survey the land all costs money.
  • Consider the cost of providing support services like clearing the land and paving a road. Some real estate companies bear the cost of clearing, fencing the land and paving an access road. However, in a case where these services aren’t provided, you’d need to determine the cost.
  • Additional fees like developmental levy, survey fees and documentation dues may not be included in the cost price of the land. Before making a commitment, find out if there any extra fees and when and how these fees should be paid.

For more information, call 09081234564, 09095757575 or send an email to info@sevicpdc.com

You can also chat with us on WhatsApp: 09095757575 09081234564

 

 

 

 

Land flipping: Eight top ways to make money from your vacant land

Land flipping: Eight top ways to make money from your vacant land

Everyone knows that land is valuable but do you know vacant land can become an income-producing asset? Land without a structure built on it can be an additional source of income for you. Here are four business ideas to implement on your vacant land and cash out.

  1. Sell the land

Of course, this is the most obvious choice. You can decide to hold on to land for as long as you want and resell in the future at a profit. After taking into the value appreciation rate. The value appreciation of land varies depending on the location of the land. A parcel of land located at Lekki would likely appreciate faster than land at a subregion in Ekiti state. Before selling the land, you can increase the value of the land by clearing and levelling the land to ease construction. This will drastically push up the price of the land.

  1. Solar energy

Investing in solar energy is big right now and if you have vacant land lying dormant, even better. Installing solar panels on vacant land or renting out the land out to a company that wants to install solar panels on your land, can be a lucrative option for you. Inevitably, the location of your land will determine how feasible this option is for you. The ultimate goal is to work with energy providers or companies that would purchase the solar energy you produce. Converting your vacant land to a solar farm is worth considering in Nigeria.

  1. Billboards

Billboards are cash cows especially in Lagos, Abuja and Port Harcourt. If your land is located near a high traffic area or a commercial zone, you should consider putting up a billboard on your property and rent it out. Businesses will always pay good money for exposure. That’s more money in your pocket every month.

 

Dangote-Refinery-Ibeju-Lekki

Ongoing Developments in Ibeju Lekki

 

  1. Parking lot

Again, the location of the vacant land determines how feasible this is. Lands located around prime commercial or recreational zones can earn you money off of parking fees alone. Several landowners in Victoria Island take advantage of their location and cash out on vehicle owners looking to park their vehicles during work and after-work hours. Another advantage is the low maintenance and start-up capital this venture requires. Simply clear and level your land to get started.

 

READ MORE: How land flipping works in Nigeria

 

  1. Junkyard

Although this business idea might not look enticing to everyone, however, it could be a source of good money. Junkyard business is an easy way to make money. Unwanted items or items not immediately needed will be stored on your land. For instance, if you have land around a spare part dealer market, your land can be used to store damaged cars to be used for scrap.

  1. Event rentals

Another popular option, especially for large parcels of land, is to rent out the space for events like wedding receptions, concerts, conferences, etc. Wedding reception venues are always in demand and are hot right now… where my owambe members at? To increase the worth of the space, you can rent tents, tables, and chairs, or offer complimentary interior design for a full package. This venture might require hands-on management but the financial reward is worth it.

  1. Farm leasing

Well if you don’t own land in the city and can’t venture in any of the above ventures, this could be a decent option for you. Lease out your vacant land to farmers to use your land for farming. Depending on the agreement reached, farmers typically take care of all the upkeep and work and all you need to contribute is the land. Lease periods vary depending on the nature of the crop grown. You can sign a multi-year agreement and secure an additional source of income for years to come.

 

land-in-lagos

 

ALSO READ: Houses for sale: What to consider before buying

 

  1. Minerals

This option is the jackpot! If your land has valuable minerals in it, you will be paid a lot of money to rent the land for mining of the mineral resource. Oil companies often pay huge bucks and give royalties to landowners willing to lease their land to be drilled. Who knows, you might have gold stuck beneath your land.

Which of these business ideas sounds good to you?

If you haven’t got any landed properties, here’s your chance to invest. (insert a link to the sales landing page)

Here’s a once in a lifetime opportunity to invest in Ibeju-Lekki. LekkiVale Estate located along the Lekki-Epe expressway opposite the proposed new International Airport with a C of O land title. This is our fastest-selling estate with an ROI of up to 150% in the next three to four years.

For more information, call us today at 0908123456409095757575. Send us an email at info@sevicpdc.com for an investment of a lifetime.

 

You can also chat with us on WhatsApp: 09095757575 09081234564

 

Houses for Sale: How to choose the right type of house

Houses for Sale: How to choose the right type of house

There are so many houses for sale in Nigeria, especially in Lagos. But not everyone starts out knowing exactly how their dream home should look like. Real estate agents will agree that most clients aren’t certain of what they’re looking for. They may have a vague idea but not the real thing. How do you determine if a particular house is a right fit for you?

Whether you’re buying your first home or choosing the right rental apartment, you’d need to narrow down the factors that are a must for you. The following guidelines will help decide what is a top priority and what’s not. Get a pen and paper ready and let’s dive in.

How to set general guidelines

The following questions will guide you towards understanding your personal housing needs. These questions are divided into 6 sections, to help you identify your housing objectives, evaluate your financial state and draw a roadmap to achieving your goal of buying or building a new home.

Section One: Define Your Goal

  1. What is my current housing situation?
  2. Is there anything you can do to change or improve your current housing situation?
  3. What do you want to achieve by buying a new home or moving into a new apartment?

 

Section Two: Establish Your Criteria

  1. List two features your house must-have. (e.g. proximity to work and 24/7 electricity)
  2. How many bedrooms, bathrooms and toilets do you need to be comfortable?
  3. Would you rather build your home or buy a home?
  4. How long are you looking to live in the area?
  5. Consider your outdoor space. Do you need a backyard?
  6. Can you live in a high-rise building? Do you mind the stairs?
  7. What about the neighbours? What type of neighbourhood would you like to live in or raise your kids in? Do you have any need for a recreational park?

 

houses-for-sale

 

It’s important to determine which features are a must for you and your family. This helps you streamline and avoid houses for sale that will not meet your needs. For instance, a young couple who’s looking to live in an area for five years might not actually need a house with a kid’s recreation park, especially if they aren’t planning on having kids yet. Most estates in Lagos highlight a kid’s park and an outdoor swimming pool as a top ‘luxury’ feature. However, if you’re a professional who’s always travelling and prefers privacy, an outdoor swimming pool might just be extra expenses you do not need.

 

READ MORE: Nigeria Economy

 

Section Three: What are your financial options

  1. How much are you willing to spend on your housing project?
  2. Do you wish to take a loan or a mortgage?
  3. Can you pay outrightly? If no, how long do you need to complete payment?
  4. Can you afford up to a 30% down payment?

Most real-estate companies like Sevic PDC offer a flexible payment plan over a period of 3 to 12 months. Others go as long as 24 months. It’s important to determine which payment option suits your pocket. If you’re looking to own a home in the future but cannot afford to buy one now, buying a plot of land might be your best option. In investing in your home, make the efforts to plan long-term.

 

Section Four: Identify The Pros and Cons

Make a chart of your top features and consider the pros and cons of each decision.

  1. Buying a house vs Building a house
  2. In your opinion, what are the implications of building a house over buying one?
  3. If you decide to buy a house, how much would it cost to renovate it to your taste?
  4. Should you decide to build your house; what is your time frame?
  5. Do you have the time to properly coordinate a building project?
  6. Owning a home vs renting
  7. How long are you looking to live in the area?

 

ALSO READ: Land for sale in Ibeju Lekki

 

houses-for-sale-4-bedroom-duplex

 

Time is the greatest factor when choosing between renting or owning a house. If you’re planning on staying long-term, it’s advisable to buy or build a home. However, if you intend on relocating or moving to another town in a couple of years, rentals might be your best bet. Whatever the case, owning your own home should be at the top of your list.

 

Section Five: Decide Which Option To Go With

  1. Choose the home that matches your criteria. For instance, is it a condo, a penthouse, a two-bedroom apartment, a three-bedroom apartment, etc.?
  2. Choose the location you’d want to live in. E.g. Sangotedo, Ibeju-Lekki, Lekki Phase 1, Magodo etc.
  3. Choose the real estate company you’d like to work with. Write down three top companies and investigate which company you find most suitable.
  4. Choose where to buy land. Decide and act on it.
  5. Make a list of the houses that have at least three top features you need and book an inspection.
  6. Decide to act now!

 

Once you’ve decided where you want your new home to be located, how much you are willing to spend and the kind of home you want to live in, act on it. There’s never a perfect time to buy a house or land.

Want more tips? Call us today on 09095757575 or send us an email at info@sevicpdc.com

You can also chat with us on WhatsApp: 09095757575 09081234564

 

Check Out Lekkivale Estate

LekkiVale Estate is a low-density residential development located at Ibeju Lekki. It is spread across 17 hectares of 100% dry land with a carefully planned layout and offers world-class amenities. Lekkivale Estate has a C of O (Certificate of Occupancy) and instantly allocates your plot once payments are made. To learn more about Lekkivale Estate, Click Here: https://sevicpdc.com/lekkivale-estate-2/

 

Offtake

Offtake

Benefits of Investing in offtake real estate!

 

The real estate market in Nigeria is rapidly evolving and most developers are beginning to adopt the offtake system of purchasing a property. An offtake agreement is an agreement that a buyer makes with a developer.  The developer agrees to sell the property at an agreed price while construction is in progress. An offtake agreement usually occurs before or during the construction of the property.

 

Buying a property at offtake has tremendous benefits such as the following:

For the Buyer

An offtake agreement allows you to buy at a comparatively lower cost, which appreciates in value once construction is completed. Offtake prices are typically lower than the cost of a fully constructed property.

Buying at offtake allows you to save more and as a plus, you benefit from instant value appreciation of up to 10% once the building has been completely constructed.

 

offtake

 

An offtake agreement functions as a hedge against future price fluctuations. As an offtake buyer, you’re insulated from fluctuations in the money market, for instance, weakening of the naira against the dollar.

Buying at an offtake allows you the freedom of expression. You’re given room to voice your expectations, tastes and what you want in terms of designs required in your building. This saves you the extra cost of renovating an already constructed building to suit your taste.

 

READ MORE: Real Estate Business

 

lekkivale-design-building

 

The developer also benefits from the offtake agreement in the following ways:

For the Developer

An off-taker purchase allows the developer to recoup a large chunk of their investment and prevents long-vacant periods after construction. It’s common to see buildings stay vacant for up to three years after construction, in which they’d have to factor in depreciation. The system also allowed for a reduction of void before the building is constructed. Offtake agreement facilitates the easy transition from construction to occupancy and increased value of the property.

The offtake agreement gives the project the extra nudge to guarantee the completion of the project in the future.

 

 

 

 

 

 

 

 

Real Estate Business

Real Estate Business

What is Commercial Real Estate?

Commercial real estate is property exclusively used for business purposes or designed as operational offices. Commercial real estate includes retailers of all sorts from huge shopping complexes to offices, restaurants, kiosks, hotels, pharmacies, gas stations, etc.

Why should you invest in Commercial Real Estate?

Without a commercial real estate, there will be no organized venue for business to successfully carry out their activities and cater to customers conveniently. Companies generally rely on commercial investors to erect structures in the allotted commercial zones and lease the space to them for an agreed period of time. Other than creating a cost-effective and profitable business space, commercial real estate investors, help boost local businesses.

When commercial real estate investment is rightly done, it is extremely lucrative and serves as a secure source of income when compared to the volatility of the stock market. A bulk of the returns from investing in commercial real estate comes from tenant rents. Typically, business spaces are leased out to tenants for an agreed period of time, say two years and even up to ten years. After this, the tenant may choose to renew the lease period, or the property is refurbished to suit another business.

There are two major ways of investing in commercial real estate. They include:

Direct Investment

Here, investors become the landlord through direct acquisition of the physical property. Unlike residential real estate, commercial real estate requires substantial capital to purchase and revamp to suit the type of businesses expected to move in.

Investors most suited for direct investment need to have an in-depth knowledge of the real estate market and the interworking of the local economy or work with a real estate company that does. Commercial properties are a high-risk, high-reward real-estate investment. As such, if it’s not done correctly, losses may be inevitable. For instance, there are certain streets like the Admiralty way in Lekki and the Computer Village at Ikeja that are booming locations for commercial real estate. There are also certain areas that aren’t suitable commercial zones. The result of carrying out a proper feasibility study before investing in an area is a high vacancy rate or low occupancy rate. There are a good number of unoccupied plazas around Lagos, especially those located away from major roads. Most businesses would typically go for areas that offer good visibility to attract more customers.

Determining the ideal location is a bit tricky as the most populated street isn’t always the high in-demand location. Also, the type of structures built should be suitable for the businesses that would likely thrive at the location. For instance, constructing a building with the purpose of creating co-working spaces is completely different from a building constructed to house a restaurant.

The ideal property is in an area with a high demand for commercial real estate and low supply, coupled with favourable rental rates. The economic growth of an area greatly influences the value of commercial properties.

For the third year in a row, Hong Kong’s Central district is ranked the world’s most expensive office space, primarily due to the high demand from Mainland Chinese firms. The average office space in Hong Kong’s Central costs $306 per square foot per year. That’s roughly N 120, 000 per square foot.

 

READ: 1004 Estate Model

 

Indirect Investment

Alternatively, indirect investment allows investors to invest in companies that primarily finance or develop commercial properties like banks or real-estate companies. Another option is owning various market securities like Real Estate Investment Trusts (REITs) and exchange-traded funds.

Real-estate investment trusts (REITs) are corporations or trusts that operate as income-producing real estate. They use the pooled capital of investors to purchase and manage income property, which is often commercial real estate. REITs are traded like stocks, where you can buy or sell REITs through a stockbroker.

 

commercial-real-estate

 

The profit potential of investing in commercial real estate is limitless. A classic example is how McDonald’s – a renowned fast-food company – derives most of its profits from its property assets and not from selling food. With its vast global network and expansion, McDonald’s owns valuable property in premier locations all over the world.

Advantages of Commercial Real Estate

Profitable Lease Rates

Commercial real estate pulls in large amounts of cash flow from its attractive leasing rates. In areas where there’s a high demand for commercial real estate and low supply, limited by land or law, the value of commercial real estate skyrockets, allowing investors to make fantastic gains.

Long Lease Periods

Unlike residential real estate, commercial real-estate benefits from comparably longer lease contracts with tenants. These long lease periods give the commercial real estate holder a stable cash flow and high occupancy rate of the building.

 

ALSO READ Nigerians in diaspora: What to consider when investing in real estate in Nigeria!

 

Capital Appreciation

Other than the attractive lease rates, high occupancy rate and providing a stable source of income, commercial real estate offers the potential for capital appreciation. As long as the property is adequately maintained and renovated.

Investing in commercial real estate is a profitable and effective way to diversify your investment portfolio. Give us a call today on 0908123456409095757575 to get our latest juicy investment deals.

You can also chat with us on WhatsApp: 09095757575 09081234564

Send us an email at info@sevicpdc.com.

 

Land tenure system in Nigeria

Land tenure system in Nigeria

Land tenure can be defined as the rights of ownership a community or an individual holds with respect to land and the resources on and in the land such as trees, minerals, pastures, and water. A land tenure system defines the rules for allocating property rights, the transference of ownership rights, how land should be used and managed in a region.

 

In Nigeria, the various land tenure systems vary from state to state and from village to village. An ideal land tenure system acts as a cornerstone for economic growth and an incentive for investment. It makes room for secure land rights and ownership, the inclusion of vulnerable groups like women and low-income earners and reduces conflict. When land rights are unsecured, it leads to conflict, instability, tribal wars and discrimination against women – denying women the right to own or inherit the land.

 

Read more: Housing deficits in Nigeria

 

The following are the major forms of land tenure systems in Nigeria:

  • The communal land tenure system
  • Open Access Land Tenure System
  • Inheritance tenure system
  • Leasehold tenure system
  • Gift tenure system
  • Rent tenure system
  • Freehold tenure system
  • Tenants at the government will

 

  1. Communal Land Tenure System

A communal land tenure system ordains the community head as the governing power of the land. Although the land jointly belongs to the community, the head of the community takes the decision of how the land is distributed. This land tenure system is typically used for large scale farming. On the flip side, the land cannot be used as collateral to obtain a loan.

  1. Open Access Land Tenure System

Open access tenure is a tenure where ownership rights are unallocated to anybody and nobody can be excluded. Open tenure typically includes marine residency where access to the high oceans is largely available open to anybody. This might extend to forestry like rangelands and woodlands. Here, animals are allowed to graze freely.

 

land-in-lagos

 

  1. Inheritance Tenure System

Inheritance land tenure system is the transference of land ownership rights to a successor after the death of the primary owner. Under this system, the next of kin of the owner- usually the children- assumes the role as the new owners of the land. The major disadvantage of this land tenure system is, this land allocation could cause disputes between the beneficiary and other family members.

  1. Leasehold Tenure System

The leasehold tenure system is having ownership rights over a property for a given period of time. Simply put, it is owning land temporarily. Here, the temporal owner is called a tenant and the principal owner is called the Landlord. The land in question cannot be used as security to obtain a loan. Depending on the lease period, this system is suitable for permanent crop cultivation.

  1. Gift Tenure System

The gift tenure system is the voluntary transfer of ownership rights from the landowner to another. This type of land ownership can be used as collateral to get a loan by the new landowner. The new owner also enjoys the full benefits of land use. However, under this form of land tenure, the new ownership status can be revoked by a court order.

 

Also read: Importance of Nature on your Health

 

land-flipping

 

  1. Rent Tenure System

The rent tenure system is similar to the leasehold tenure system. The main difference is the duration of time the tenant is allowed to use the land. A lease period could go on for many years but the rent period is typically shorter. Temporal ownership is received after an agreed sum of money is paid. This form of land tenure system discourages the tenant from paying for a long-term plan.

  1. Freehold Tenure System

In this case, an individual or a group pays an agreed sum of money to get the right of ownership to a part of the land. Buying land under this tenure can be expensive. The advantage is, the land can be used to source loans from a financial institution.

  1. Tenants at Government Will

The government can allow a portion of land to an individual or a community. A good example is the Federal Government giving a massive portion of land to farmers to foster agriculture at a low cost. Although the individual or community generally has full autonomy to the usage of the land, the land cannot be used as collateral for the loan.

Here’s how you can become a landowner:

Other than inheriting land or receiving land as a gift, you can become the proud owner of the land at Lekkivale Estate, fair and square. LekkiVale Estate located at Ibeju-Lekki has a C of O land title and instantly allocates your portion of land once payment is complete.

Call us today for more information on 0908123456409095757575 or email us on info@sevicpdc.com

You can also chat with us on WhatsApp: 09095757575 09081234564

 

error

Enjoy this blog? Please spread the word :)

WhatsApp
Facebook
LinkedIn
Instagram