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

 

 

 

 

Buy Land in Lagos: Top five signs you need to own Land in Lagos

Buy Land in Lagos: Top five signs you need to own Land in Lagos

Deciding when to buy land in Lagos is not the easiest decision to make. Buying land requires a huge financial commitment which appreciates after a number of years. With the current economic downturn in Nigeria, investing in real estate isn’t the most practical option.

 

However, investing in real estate is still one of the safest long-term investment options in Nigeria. If you aren’t already thinking about buying land, here are five top signs you need to own land in Lagos.

1. You’re Nigerian
Ever heard the saying, “everyone is a Lagosian?”
Anyone can own acquire property in Lagos and if you’re Nigerian, even better. Lagos is the friendliest state to do business even if you don’t live in Lagos. In 2015, the UN projected Lagos to have an annual growth rate of 6-8% per annum, making her the 11th Mega City in the World. There’s more, statistics from the Nigeria Immigration Service (NIS) indicated that the number of foreigners that come into the country is more than those that left the country within the last five years. A more detailed report stated that 86 people migrate to Lagos every hour. Of course, the explicable reason for this gross influx of people is the ease of doing business in Lagos.

How can these numbers pay you?
As a landowner in Lagos, your land appreciates in values twice as much than any other state in Nigeria. Areas like Ikoyi, Ibeju-lekki and its environs reap even higher value appreciation.

2. You Have Money in Your Savings Account                                       

“How many millionaires do you know who have become wealthy by investing in savings accounts? I rest my case. – Robert G. Allen

While buying land is a huge financial commitment, it pays enormously in the long run. It might seem a clever idea to hold on until you’ve saved enough but, the reality is the cost of land always tend to rise in the long run. So, while you waitland gets more expensive plus you’d have to factor in inflation rates.

What does this mean to you?
You can start with what you have right now to get your own land. You don’t necessarily need to start with the extremely high-end lands. You begin with growing outskirts like the Ibeju-Lekki region. This region has high growth potential. If you’re looking for a rapid turnover, here’s your chance.

 

land-flipping

 

Read more: How to get the best land deals in Nigeria.

 

3. You Have Investment Plans
Investing is the quickest way to build wealth. However, every form of investment involves risks at varying degrees. Fortunately, investing in real estate is the safest investment option in Nigeria. The best part is, anyone can invest in real estate. You don’t have to be a land expert to buy land. Your main concern should be the location of the land for sale.
Buying land allows you to build equity in invaluable assets, which can be sold for cash, used as collateral or used to fund other projects. Once you’ve found suitable land for sale with valid land documents, make the move! 

4. You Need A Retirement Plan
As you get older, you’d need a steady flow of income. Being a landlord in Lagos gives you this much needed financial leverage. The cost of housing in Lagos is one of the most expensive in West Africa. Frequent spikes in rents are triggered by the high demand for houses and land. 

Most influential families with properties in V.IIkeja, and Ikoyi, etc. currently benefit from the proceeds on their properties.
Even better, it serves as an incredible way of passing something on to your children. Let’s just say, unless you’ve mapped out or hoarded for yourselves the absolute retirement fund, you should consider venturing into property acquisition.

5. You have a luxury car or two
Nigeria is the number one buyer of cars in Africa, with Lagos incubating majority of these cars. once saw a social media meme that read, “If you live in Lagos, you’d think a Range Rover is N 250, 000.
If you can afford a luxury car then, you can afford to buy landed property and you should.

Quick math: 
The depreciation value of an average brand-new car is up to 40% by the end of its first year and this number increases to about 60% by the time the car is three years old. Of course, these statistics vary depending on the brandmileage and other factors.
Let’s compare this to buying a plot of land at Ibeju-Lekki. (I continually mention this region due to its high rate of value appreciation.)

Three years ago, an average 600sq meters with a C of O was sold at 2.8 million. Last year, this price went up to N3.5m and today, the lowest you’d get is N5m.
See the difference?

 

 

Also read: All you need to know about the industrial developments at Ibeju-lekki

 

Got Questions? Great! We’d love to help
Call us today to find out more about investing in real estate in Nigeria. You can call us right now to book a land inspection at 0908123456409095757575 or Send us an email at info@sevicpdc.com

You can also chat with us on WhatsApp: 09095757575 09081234564

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