I wrote a three-part series on property which begins here. I would like to bring a few things to your memory.
1. Your budget determines the type of property you can buy – whether virgin or commercial; rural or urban; undeveloped or developed.
2. Never buy property from individuals unless you absolutely trust them or are an experienced investor. If an agent leaves, a company still has a record of your transaction, hence the advantage of buying property through companies with a fixed address.
3. Always get a lawyer to review your property documentation or to do due diligence at the relevant government agencies. Lawyers are not as expensive as you think. Their fees are typically percentage based.
4. Only buy property in a place you don’t want to live in when you are young (or as an investment). By the time you start earning enough to live where you want, your initial investment in the undesirable place would have significantly appreciated. You can then sell and use the proceeds, as a seed investment towards acquiring what you really want.
5. A seller is only obliged to give you a deed of assignment or allocation letter (if it’s government). You need to pay for your Governor’s consent and individual survey. If you buy through a company, they can facilitate this for you at an additional cost.
6. If you buy property in a commercial estate, you are obliged to pay a development levy as your contribution to fencing, security and utilities. Think of it as paying dues to a precursor of an estate association.
7. Property is not as expensive as you think. With as little as N350,000, you can buy property in Lagos. It’s much cheaper outside Lagos. I provided a range of property prices here.
If you have any questions, please send me a note.
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