INVESTING IN REAL ESTATE

Buying a property in Lagos for either personal use or investment purpose is a dream come true for most Nigerians as ownership of a property or more is one of the determinants of how successful one is.

However, this rather simple activity can get complicated and tragic.

As a matter of fact, people’s dreams have been shattered by buying from the wrong hands.

Let me tell you about my friend, Yetunde…

Last year, she wanted to buy a plot of land between Abijo and Bogije area of Ibeju Lekki, but when she mentioned her budget, I advised her to increase it or buy half a plot of land instead. She insisted that she wanted a full plot and I never heard from her again despite my follow-up chats and calls. After about 2 months, she called me to narrate her horrible ordeal in the hands of “Omo Onile”, land grabbers. Yes, she got a full plot of land at a cheaper rate but unfortunately for her, it was a fraud, the land was under government acquisition. Now she’s fighting tooth and nail to get some of her money back. She’s been told it may not happen because the documents were not genuine.

How about the stories we hear of one Agent selling only one property to multiple people within the same period.

This doesn’t have to happen to you.

The many stories of woe in the real estate industry in Lagos State and the fear of being duped or scammed have made it difficult for a lot of potential investors to put their money into real estate.

This guide will explain in detail the steps to take before buying any property (Land or House) in Lagos.

Real estate has been one of the major sources of wealth for many of the world’s billionaires today.

From Statistics in 2020, there are 256 billionaires in the world whose main business is in real estate.

So, what exactly is Real Estate Investing?

Real estate investing simply is the process of purchasing, owning, managing, renting, and/or selling property for profit. Also Improvement on a property, either simple renovations or completely new development is also real estate investing. A real estate is an asset form with limited liquidity when compared to other investments, it is also capital intensive.

First-time home or land buyers are also real estate investors because the ultimate goal of everyone should be increased profitability.

The Major Ways of Investing in Lagos are;

Land Flipping
Investment properties ( Buy Cheap and sell higher)
Buying Rental Properties
Normal Yearly Rent or Air BnB (Short-let)
Land banking ( Cash In and Cash out)
Buying for Personal use.
Purchase by Collaboration/cooperatives or REIC

The aim of this E-book is to arm would-be investors with the 6 major guides that will ensure that they never get involved in any fraudulent transaction.

They must be well understood and applied at all times in order to avoid regrets in real estate investing.

This blog is specifically to enlighten my readers about the massive potential that exists in investing in Lagos State.

Note that buying property in Lagos is pretty much the same as buying property in any other part of Nigeria and Any real estate investing done in any part of Nigeria will definitely yield good returns as long as it is properly done

Reasons, why Lagos is a great place to Invest in Real Estate, are as follows:

Fast Population Growth
Lagos State as of today is estimated to have a growing population of 22 million residents.
The report has it that 86 people migrate into Lagos per hour every day and this population growth has resulted in a housing deficit.
Also, 75% of “Lagosians” still live in rented apartments so anyone with the financial capacity to build rental apartments is sure of constant rental income.
Lagos is the Commercial Capital of Nigeria.
Abuja may be the administrative Capital of Nigeria but Lagos still remains the commercial Capital of Nigeria. Lagos State is the richest state in the country with its GDP accounting for 25% of Nigeria’s total GDP.
Lagos state has a growing Middle-Class Population
15.2million of the estimated 22m “Lagosians” are within the age bracket of 15 – 64 and these groups of people are earning sustainable income especially as they leverage social media. Lagos state has a 16% urbanization rate which simply means that places that are considered as far or “bush” become developed Faster than expected
Lagos State has fast appreciating Property Prices.
A case in point is our Eastland Golf Estate sold at N1.1m early last year but today it is been sold at N10.5M. Due to the rate of population growth, there is a high demand for rental property
And Lastly, Ibeju Lekki investment properties.
The fact is that the nearness to key industries and Government developments are some of the reasons why locations develop and become prime areas. Such is the story of Ibeju Lekki, the world-class developments that are coming up there will definitely influence the urbanization of Ibeju Lekki in the nearest future

Such projects are as follows;

Dangote Refinery and Fertilizer plant
Lekki Free Trade Zone
Lagos State Deep Sea Port
4th Mainland Bridge

YOU MUST KNOW THE PURPOSE OF YOUR INVESTMENT

Purpose – Why do you want to buy a property?

This stage may seem simple but it is very crucial to the whole real estate investment process.

For instance, you may be tired of paying rent and decide to buy bare land you can build on or buy an already built house. Also, others may want to buy a house or build it for rental income purposes strictly.

Some other people just want to buy cheap/affordable land for investment purposes and such people are willing to wait for a long period of time while another person needs to buy a property in order to flip in the nearest possible time. Etc

There are other reasons why people invest but it is important that you think it through and know your WHY.

YOU MUST HAVE A BUDGET

Budget – How much are you willing to spare for this Investment?

Some clients don’t like hearing this question from realtors but similarly, realtors are wary of speaking to clients that claim they have an open budget. The reason is simple, it is important and expected for the buyer to have a projected amount to be expended on the property investment.

This information will help realtors like me give you the best service because, in situations where your budget is not adequate for an outright purchase, I can give you information on projects with installment plans where you can pay between 6 months and up to 30 months in some cases.

After purchasing land or home within Lagos, especially when buying into Estates, there are additional fees that the buyer must pay,

The fact that the price of a plot of land has been set at N8 million doesn’t mean that’s all you’re going to pay including:

A). Survey Plan Fee: This rests largely on the location of the land and is usually between N150,000 and N1,000,000.

B). Legal Fee: This is usually 5% of what the land costs

C). Agency Fee: This is also 5% of what the land costs

D). Cost of Signing Documents: The officials in Lagos State in charge of this have a strange tradition of making you pay to get your documents. In other states in Nigeria, this is not applicable.

E). Cost of Securing Your Documents: Before you perfect your documents like your C of O at the Land Registry, you’ll be required to pay a fee.

YOU MUST KNOW YOUR DESIRED LOCATION

Location: Which part of Lagos do you want to invest in?

Lagos State is massive, it is Nigeria’s largest urban area with the most population and it is the financial center of our great nation, Nigeria.

Lagos State stretches from Ikorodu to Lekki to Epe to Badagry to Egbeda etc.

Broadly, Lagos has been divided into 2 main areas namely Mainland and Island.

Inasmuch as Real Estate investment always appreciates in any location, Return on investment (ROI) varies in different parts of Lagos

This is the reason why your realtor needs to know your desired property investment location and advise you appropriately.

However, I render advisory services where I can guide you on the best location based on your purpose of investment as discussed above.

YOU MUST LEARN TO DELEGATE TO PROFESSIONALS

Delegation: The next step you should take now is to get a Dedicated and reliable Realtor, which I am.

You have your own career or business to face; this is where you have been able to raise good money to be able to venture into this investment, so it is only proper that you continue to give it good attention while you employ a dedicated and reliable realtor with your interest at heart. (Like me)

This is very essential because good realtors know the right questions to ask and will not allow their clients to make wrong decisions.

Eg. Do you know that you can buy a plot of land with C of O as title and still have regrets in a short while after purchase?

Yes, C of O is a good title but that is not all to buying a property.

Delegate to experts and let them do their job.

The next steps should be handled by your realtor however you will be involved in the process

YOU MUST ENSURE THAT ALL DUE DILIGENCE IS DONE

Verification Process; At this stage, it is expected that your realtor has already found the property you love based on your budget and desired location, so it’s time to verify both the Seller and the title documents on the property.

Verification of the Seller:

I am sure you have seen several properties with big signs saying, “THIS HOUSE IS NOT FOR SALE” within Lagos. The reason is usually due to the fact that a wrong seller had tried to sell but was unable to conclude because of the carefulness of the buyers.

This stage is where the realtor begins his/her work fully, they will conduct the proper searches, ask the right questions, and request the right documentation to determine if the person you are speaking to about the property in Lagos, is the real owner. This is EXTREMELY important especially when the property in question is family land/house.

Verification of the Property

There are several types of documents that sellers may present to you and it is the job of your realtor to verify their authenticity, some documents are more secure than the others, however, they all need to be verified.

The most common documents usually presented by Sellers are namely:

Certificate of Occupancy
Registered Deed of Assignment (Note there are unregistered Deeds)
Deed of Conveyance
Gazette
Excision
Receipts and Survey
Stay tuned to my page for education about Title documents in Lagos

A search must be done; this can be cumbersome especially if you don’t understand the procedure involved but having a reliable and experienced realtor like me will be very helpful in ensuring a successful verification process.

A reliable Realtor must carry out proper investigations on the property to know the actual owner. If you are not buying into an estate, the realtor must make inquiries from people around during physical inspection and there may also be a need to investigate the traditional history of the land/house.

However, if you are buying into an estate, most property development companies today have simplified the search and verification process by doing it on behalf of their prospective buyers.

YOU MUST ENSURE THAT PAYMENT IS MADE TO THE REAL OWNER

Payment to the Original Seller.

This is very essential especially when you are not buying into an estate where the Property owner is well defined.

In the event that you are buying property from individuals, it is not advised to make direct transfers to their accounts. The proper and secured way is to prepare a bank draft and exchange your draft with all original title documents of the property and keys too if it is a house that is being purchased. This way, both parties are settled simultaneously and the deal is finally closed.

Finally, I believe with the information above, you should be able to purchase your own slice of Lagos over and over again.

Whether this is your first purchase or your fifth or an investment property, I and my team are committed to the process of finding you the right place in Lagos.

For us at Exelproperties Limited, your property purchase is more than just a deal, and we want to encourage and equip you along the way. Finding your Property is our mission and we are delighted to be a part of your journey.

Are you looking for new investment properties in Nigeria?

To schedule an inspection or for advisory services, kindly call 08127078387 or 08175571113

Finding your Property is our mission. And we are delighted to be a part of your real estate journey.

I’m Iluyinka Adeyemi, I’m your very Caring Realtor and with me by your side, all your Real Estate expectations will be met and your peace of mind is guaranteed.

Can’t wait to work with You!

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