Property investment over the years has not only proven to be the safest form of investment but also it is the best way to save for retirement and build diversified investment portfolio.
However, in a city like Lagos where the real estate sector is very viable, before one can attest to owning a property with ease and peace of mind without any unpleasant stories, there are some basic steps one need to take during the land buying process which I will explain below.
1. You Must Have A Goal
First and foremost , before you venture into any land or property purchase deal you must have a goal. Your goal helps you to plan and assess your financial options.
The truth is when your goals are pre-defined, its helps you to know where to put your money and also help you recognized and take advantage of opportunities that suit your investment objectives.
2. Pick a Trustworthy Team
Your real estate investment deal is as good as your real estate team. If you desire a have a successful real estate investment experience then you need to get a trustworthy team to work with.
Most people with bad experience in land purchase experience such due to the fact that they work with the wrong set of people.
The truth is property purchase can be complicated sometimes if you are dealing with the wrong people, therefore you must build a team that must be composed of people you can trust. Your team members includes your agent, a property lawyer, your surveyor, your architect, your engineer etc.
3. Verify All Land Documents Given to You
I have seen so many people make the mistakes of purchasing land and properties based on land documents given to them by land agents without going further to do their own due diligence.
For instance, I have seen cases where a particular land falls into Government allocation and the “omonile” gave out a registered survey with a proof of payment for lodgement into red copy bearing the name of the village to the buyer that the land they intend to sell to him has a registered survey.
The only way to prove this is to take your surveyor to the land, pick the actual coordinates from the portion they want to sell you for charting at the surveyors general office in Alausa. The chart result would tell you the actual status of the land.
4. Ensure the Zoning Classification permits you to build
It is said that whoever owns the land owns it from the crust of the earth to the sky, however, this law don’t apply in some location according to government policies and zoning classification.
Before you purchase into any property, ensure you make proper inquiry on the location to double check if you can actually get state approval to build structures according to your taste. Don’t make the mistake of concluding that because the person next to the land you intend to buy is building a high rise then automatically you should also get approval for high rise building.
This still brings us back to the No. 1 Commandment of real estate investment, which is having a goal.
For instance I have seen cases where people thought buying a land facing the express, they automatically have approval to build structures that would face the express road not until when they get to the land bureau they would discover that they do not have such approval to build structures facing the express.
5. Evaluate the Potential Returns on Investment on the Property
This point is very important when considering buying land or properties in any location. There are so many factors that contributes to capital appreciations and good returns on investments that you should look out for in the location you choose to invest in. Such factors include some government policies and economic indicators.
Follow the above and have an excellent land purchase with little or no stress..