Real estate development revolves around prime locations. Almost every aspect of land for sale can be changed except where’s it’s located. Location determines the price of a property.
For instance, you can have identical buildings, one located at Egbeda and the other located at Banana Island. Both houses built using the same materials and design will command different prices. The house located at Banana Island would cost as much as four times more than the house located at Egbeda.
Factors to consider in determining the right location to buy property
As an investor, you should always consider the present and the future when making investment decisions. For instance, an area that appears to be of enormous financial value now, might not be the case in the next five years or ten years. Just like a disregarded area now might explode in five years. However, in both cases, there are several forecasting determinants like the following:
Would there be access to basic amenities on the land for sale?
The concept of sustainable development leans toward the availability of constant electricity, water supply, security, and well-paved roads. Look out for areas that have access to water, electricity supply and security. All these are the basis for economic growth without which, sustainable growth may be limited. Long-term real-estate developments are directly associated with and dependent on the availability of these variables.
The value of land for sale is correlated with the social class of people living within the area. Going back to our comparison of Egbeda and Banana Island: Egbeda is predominantly made up of low to middle-class income earners while Banana Island is inhabited by predominantly high-income earners. This social and economic disparity influences the price of both properties. In urban areas, town planning decisions largely depend on ‘who’s’ moving into or living in the area. As minimal as it sounds, it is extremely important to consider who your ‘neighbour’ is when buying land.
Is it close to major roads?
Access to the land via paved road is crucial. When it comes to buying land, convenience is everything. Areas located close to a major highway invariably attract sustainable development and thus high ROI on real-estate investments.
What is the official title on the land?
This is perhaps the most critical factor on this list. Even if a plot of land possesses all the above factors, if the land for sale doesn’t have a valid C of O or Governor’s consent, it’s best to avoid the land for sale. There are different land titles and each land title influences the price and ownership status of a property.
For instance, two plots of land located in the same region will command two different prices if they have different land titles. Suppose the first plot of land title is excision in process and the second plot has a C of O. The second plot would likely cost twice and in some cases three times the price of the first land. The reason is, a C of O land title guarantees ownership and secures real-estate investments.
Every once in a while, a fantastic opportunity for real estate investing like the Ibeju-Lekki area presents itself. Ibeju-Lekki has attracted massive industrial investments like the Dangote Refinery, The Deep Seaport, The New International Airport, The Fourth Mainland Bridge, etc. However, amidst all the buzz and rush to this region, there are severe cases of fraudulent land sales. If you’re not careful, you might lose your money by buying land you should avoid.
Firstly, most of the land available in this region do not have proper land titles. The Ibeju-Lekki area has been marked by the government as a growing urban zone and thus, most of the region legally belongs to the government. The common land title is the excision in progress title, which gives you a 50/50 chance of actually OWNING the land. While, A Certificate of Occupancy (C of O) protects you from all these uncertainties, and you’re assured of 100% ownership.
LekkiVale Estate offers you the BEST deal available in Ibeju-Lekki today, offering you the following:
LekkiVale Estate has a valid C of O
Flexible Payment Plans for up to 12 months.
Strategically located by the Lekki-Epe expressway, opposite the proposed New Airport.
LekkiVale Estate offers you FREE bespoke architectural plans worth up to N250,000 to choose from.
Before making the decision to buy land or making that first deposit, you need to understand all the valid land titles acceptable in Nigeria. While most people leave all the paperwork to their lawyers, its important to know the different types of land titles and how they affect your return on investment. Here are the various land titles recognised in Nigeria:
A Certificate Of Occupancy(C of O)
A certificate of occupancy is a document issued by the state governor or a local government chairperson certifying ownership of landed property. This document proves ownership of a property for a period of time, usually 99 years. A C of O guarantees the highest level of land security in Nigeria.
Benefits of a Certificate of Occupancy
It serves as indisputable evidence to prove ownership of land and serves as a strong defence in land disputes.
Increases property value.
Prevents unwarranted land disputes and eliminates the problem of multiple ownership.
In the event where the government demands the acquisition of your land for public purposes, you will be well compensated because you have a C of O.
It is recognized by financial institutions and can be used as collateral for obtaining loans.
It can be used when securing a mortgage plan.
It makes it easy to resell your property.
Clearly, the importance of a valid C of O can’t be overstated. Unfortunately, it is common practice to see land for sale without a C of O.
Excision is a process that is an appeal to the government to release a portion of a vast portion of land that is committed. The released portion of land is called excised land and considered free. The land then earns a gazette title. A gazette title is considered relatively safe because a C of O can be easily processed once a land has been gazetted.
Buying lands with an ‘excision in process’ title is 50/50 ownership deal. In the event where the land is excised, you can proceed to apply to obtain a C of O otherwise, the land still belongs to the government and can be taken at any moment. If you insist on buying land with an Excision in Process title then, basically accepting the full risk of the possibility of losing your real estate investment. Note that although lands with excision in process land titles are relatively cheap, most real estate companies ask for certain developmental fees once the land is excised to recoup.
Gazette land title
A Gazette is an official record book where all special government details are written in detail and recorded. A Gazette details the number of acres of land retained by the government for public use and the number given to the local communities or real estate company. A gazette bears substantial weight and used by communities as legit land documents. If you’re going to buy a plot of land that claims to have been covered by a Gazette, get a surveyor to chart the site and take it to the Surveyor General Office at Alausa, Ikeja to verify and ensure the land actually falls within the stipulated coordinates in the Gazette.
There are cases the government based on certain reasons decides to revoke or re-acquire gazetted land. However, in a case like this, the landowner is entitled to some compensation. The risk here is the rigorous verification process required to ensure the land for sale falls within the stipulated gazetted land.
A Governor’s consent is a document that allows a person with a C of O to transfer ownership to a third party. In other words, if you acquire land with a C of O document, you must get a Governor’s consent before you sell or transfer ownership to another party. The third owner must also obtain a new Consent from the Governor before the transaction is deemed legal in the eyes of the Government and the process applies every time the property changes hands to a new owner.
The Governor asserts the right to either grant or revokes consent to any transaction. Obtaining a Governor’s Consent isn’t the easiest process but it can be processed in 30 days. Unfortunately, 30 days could easily extend to 6 months or even a year due to unforeseen inconsistencies.
Having a Governor’s Consent is the best assurance against Omonile wahala.
Buy land with a C of O title. It saves you the stress of having to deal with any form of litigation or intrusion by Omoniles. LekkiVale Estate located at Ibeju Lekki offers you a stress-free acquisition process. Lekkivale has a valid C of O. Call in today on09081234564, 09095757575or send us an email at firstname.lastname@example.org for more information.