5 critical steps for buying property in Nigeria

Over years, in the cause of selling Real estate, I have come across many prospective investors who come to me with question such as;

I want to buy a property in Nigeria but I really don’t know how to begin. Looking at these constant enquiries from Nigerians within and outside, one can easily see that many of these questions or enquiries are generally made either out of fear, out of losing money to scammers or out of sheer ignorance of the various processes or rudiments of owning a property.

This remains a major problem for real estate investors in Nigeria because, it is hindering real estate investment despite the avalanche of literature that seeks to provide guidance for investors.

In the course of my real estate consultancy and brokerage, I heard people speak of how they quit a property buying process simply because, according to them, the process was rather too tedious for their liking.

It is in a bid to proffer solution to this problem that I have put together five very critical steps for every real estate investor, particularly for those intending to own properties in 2023 and beyond.

These practical steps are a product of years of experience in selling real estate across Nigeria. They are very simple, yet effective, making them the easiest known guide to real estate acquisition in Nigeria. I confidently guarantee that a strict adherence to these steps can enable any prospective investor to invest in properties in Nigeria without stress.

Have clear objectives

The first step to having a seamless property acquisition in Nigeria is for the investors to have a clear purpose of what they intend to do or achieve with such properties.

This is very important and must be clearly stated from the onset. Having a clear objective gives the investor a clear direction of which product to choose over another that best suits the investment objectives.

By investment objectives, I mean that the buyer must decide if such property should be; a buy and build land, land for future investment, off-plan housing projects with instalment payment, a finished buy and move in apartment, just to mention by a few. Having a clear objectives is very critical to the success of the property purchase of an investor.

The client’s investment objectives will further influence other factors such as location, budget, price etc. i.e a client whose investment objectives is to buy and build immediately, will surely require a buy and build land, which implies that such property must be located in an environment with active neighbourhood where people already live. This is necessary since the buyer cannot go and live alone in the bush, without a vibrant neighbourhood that will also form or compliment his security.

However, for a client whose investment objectives is a land for future investment purposes, would require a land in a developing area. This is because such investment objectives being a land banking process will require the buyer to buy properties from an under-developed or developing location, with highly affordable prices, which the buyer can resell in the future for premium returns on investment. A close look at the above examples shows different investment objectives which calls for different locations at different price scheme.

2. Budget

Budget in Real estate refers to the minimum and maximum amount of money the buyer or investor is willing to pay in exchange for the possession of pieces of land or home specification. Having a clear budget before beginning a property buying process is key to the end success of property acquisition in Nigeria.

Such budgeting is however predicated on the objectives of investors as earlier mentioned. Many times, investors come into the wide market like Real Estate with a wide range of choices without a clear budget.

This happens for both property sales and leasing services, and many times, investors or property hunters get frustrated because they came in with assumptions rather than having a clear budget.

Your budget also helps to give a clear direction of your choice location. The budget of an investor can also serve as another means to derive a client’s investment objectives. The issue of having a clear budget has made many property acquisitions impossible, where money available is below the price of property needed.

In deciding a budget for your property purchase, investors are advised to put up a budget that will suit their investment objectives. i.e if an investor decides to buy and build land in an already developed area or prime location, such buyer should set a realistic budget for the said location in line with the investment objectives.

Furthermore, given the fact that the Nigerian Property market is broad and constantly changing, I will also advise any buyer to have a clear but flexible budget that can fit into the prevailing market environment. Budget is very necessary whether for property purchase, leasing or rent.

3. Location

Location here refers to the geographical environment where-in the property is situated. The importance of having a choice location for your property acquisition cannot be over emphasised. This is because in many cases, the location of a property shall influence prices of that very property.

As we already established, upon clarity of investment purpose or objectives, such objectives will serve as a guide for the most suitable location to buy a property in line with the objectives. It’s also important to note that; in the Nigeria Property market and indeed all over the world, different locations call for different prices.

This is one of the major reasons why the cost or prices of properties in different locations differ over time. i.e the cost of buying a plot of land located at Admiralty way area of Lekki, a prime location in Lagos will surely be higher than buying the same 600SQM land in Ibeju-Lekki or Epe, a fast developing area of Lagos, Nigeria.