Naija investment Real Estate

Post on: 16 Март, 2015 No Comment

Real Estate investment in Lagos Nigeria

Real Estate is a profitable business worldwide. The only investment that comes close in profitability is stocks and shares investing. But unlike stocks, it’s a far more stable. Lagos Nigeria is far more profitable than elsewhere when it come to investing in Real Estate you stand a chance of making excellent profit if you invest right.

Reasons why you should give it serious though

1. Property values appreciate fast, Property prices in Lagos Nigeria is constantly rising. For example a land bought in ikota for 3.5 million naira about four years ago, is now worth over 12 million naira, another typical example is a land bought at sangotedo (off lekki epe express way) for 750 thousand naira in 2004 is now valued at over 5 million naira, so also is a duplex bought in 2003 around the same area for 15 million naira is now valued at 35 million naira. It not just in Lagos states that properties appreciates fast, other states are appreciating as well, as long as you invest in the right place in that state. You don’t have to be wealthy to invest in Real Estate, 2 plots of land in Ogun state i once bought for just 100 thousand naira each in 2001 is now valued at 1 million naira each.

2. House rents are constantly increasing prices.

3. Lagos is the centre of commerce, more and more business are sprouting up, more businesses means better standard of living, which means more people ready to buy property and rent properties.

4. Lagos Nigeria is constantly expanding, Lagos recently attained the mega city status. This means that property you’re buying that appear to be in the suburb, may soon become a property in a commercial neighborhood. That means more money for you because properties in that area will appreciate in value faster than you imagined.

5. In African societies, You’re not considered to have attained anything concrete unless you at least own a house.

6. Money loses value over time. Even If you decide to put your money in a high interest account, at the end of the day, the net worth will be reduce by inflation.However, if you invest it in real estate, your investment will take care of of itself if you invest right, the rent from your investment will serve as your interest, and money you invested will continue growing.

Before you do invest in Real Estate

Long gone are the days when investing in property only has to do with building an empire to be inherited by our children and grandchildren. Property investments now goes beyond that, it involves various tehniques and studies. Before parting with money, the first thing to think of is what type of property am I buying? Should i buy a plot or more? Should I buy a developed property or an uncompleted building? Beside those questions lies questions like how do I choose my location? Is the area sure to develop in another so so years? If development of the location is going to take say 10 years, you should ask yourself if you will be prepared to wait that long?

Do lots of research (area and value of properties) before you part with your money, make sure you invest right and in the right area as not all areas increase fast, also some agents even friends and family members have been known to double or even tripple the price of properties they help to acquire, land worth 500 thousand naira could be sold to you for 1.5 million naira if not careful.

Use the service of a lawyer to check all papers are in order and also to know the person/agent selling has the right to sell, so as to avoid being scammed, it might cost a little more but could save a lot of tears and stress in the long run.

If you purchase say a land with no little or no documentation, try and get all the papers in order, i.e land survey, deed of assignment and c of o (if possible) this will make it impossible for the omo onile to resell your land (if you bought it from them).

Conducts search before you purchase any Property

Before you purchase that property.

1. Acquisition of land and its documentation involves a number of procedures that call for due diligence and caution on the part of the purchaser. Retaining the services of a good professional could help get through these procedures in your best interest.

2. Your lawyer should carry out the investigations of title of the Vendor and all other processes prior to the purchase of the land (payment of the purchase sum).

3. The primary objective at this stage is to ascertain that the Vendor has a good root of title. A good root of title in this context means the following:

3.1. that the Vendor is the rightful (beneficial) owner of the land.

3.2. that the land is free from any encumbrance or pending litigation.

3.3. that the land is not the subject of any Government acquisition .

3.4. that the land is not subject to any of the overriding interests in land (e.g. short leases, easements, licenses, road or right of way).

3.5. that the Vendors are acting in good faith (for instance where the land is family owned land)

4. Investigation of title is carried out at the Lands Registry or New Towns Development Authority (whichever is applicable) by the Purchasers Solicitor shortly after inspection and expression of interest in the land using copies of the key title documents, evidence of payment of levies, approved building plans, survey plans, excision plans, etc. Sometimes investigations may include visiting the neighbours to the property and making direct enquiries in respect of the land n question.

5. If the property falls within the Excision Area (i.e. areas exempted from Government acquisition such as Ajah and environs), the investigation will include the verification of the red copy of the Excision Plan of the Layout where property is situated. The Excision Plan itself is a vital document and a prerequisite for Registration of Title to property at the Lands Registry. Very often, an area covered by an excision plan will also be published in the Government Gazette for the avoidance of doubt.

6. It is always prudent to verify the Excision Plan by re-confirming the survey beacons around the land. Where there is no Excision Plan, an application for the approval and registration of one will have to be made to the State Government in the prescribed form by the original title holder/ beneficiary of the Government Excision. The process is usually an expensive procedure depending on the size of the property and the valuation of the property.