So you are ready to buy land in South East Nigeria. You have your money, and your friends and family have suggested various locations to you – Enugu, Owerri, Aba, Asaba, Ebonyi, Awka. A couple of friends may have even referred their real estate plugs to you. You appreciate the referrals, but you are trying to be careful because you have heard stories of people who have lost huge sums of money to dishonest real estate agents, and it’s true, these stories abound! If you’re a Nigerian in diaspora, you probably have even more reason to be concerned because you may not be able to see the property yourself before you buy. However, you’re here now, so you should not be afraid.
This article will provide the guidance you need to buy as many properties as you want that are free from government acquisition, devoid of any encumbrance, and promise a high return on investment if you intend to resell in the future.
Before you pick a property and make the bank transfer to your real estate broker, here are 3 things you should consider:
Your Budget
This is a very important part of your buying process, because your budget will determine what location you are able to get property in. You should first of all seek the services of a good realtor who can tell you what locations are obtainable at different price ranges. If you do not know this, a dishonest agent can try to swindle you of your money in the guise of selling ‘cheap’ or ‘distress sale’ property to you. For instance, you currently cannot buy land in Centenary City Enugu to build on for 5 million naira or less, because of its current level of development. However, a 5 million naira budget can get you two plots of land in a fast developing area of Enugu that you can buy and flip in a few years for more than double the initial price you bought them.
Proper research will let you know how much money you should set aside before setting out to buy property in the location that you want, as well as the cost of obtaining important documents associated with the land.
Location
If you hang around real estate brokers, you might have heard them say something along the lines of, “two important things to look out for when buying property are price and location.” It’s true, especially when you’re buying for the purpose of reselling for significant profit.
Let’s discuss a bit about purpose of purchase. Your intent of buying the land will determine what location to buy in.
If you’re buying for land banking purposes, for example, you should be looking out for the area’s potential for growth. Think about how that area will develop over the next 5, 10, 20 years.
If on the other hand you’re buying the land to build on it and move in, then you should consider its closeness to places like school, office, shopping mall, and availability of basic amenities like electricity and water.
You also want to examine the traffic flow and make sure there’s easy access to roads. There should also be a good drainage system to check floods.
There are factors that determine how fast an area will grow. These factors include government interest in that area, and the rate at which it is developing.
Vendor’s Root of Title
The vendor’s root of title is a document that shows that the vendor owns the property and therefore has the right to sell it. When a vendor’s root of title is defective, the buyer also acquires a bad title upon acquisition. A good root of title must clearly describe the land, state the owner[s] of the land and nothing on the face of the document should raise any doubt as to its authenticity. An example of a good root of title includes a deed of gift, deed of legal mortgage, assent and probate.
Before you buy property, and especially if you are buying from a family, ask to see the root of title to prevent stories that touch the heart.
Conclusion
There are other factors involved in buying a property in South East Nigeria, and if you are in search of a trusted broker to assist you in securing your choice property in a great location, you can reach out to us here.
In summary, before you set out to buy a property, know what you are looking for and why you want to buy, and ensure that you do your due diligence on the property before paying for it.
For more helpful articles to guide you in making profitable real estate decisions, check out our blog.