Many Nigerians dream of owning one sort of landed property or the other as it is considered a thing of pride, proof of wealth, and provides a source of income when you’re a landlord. Lagos is the commercial capital of Nigeria and is usually a first choice city to buy a house. Buying a home in Lagos, Nigeria is no small investment; some risks and benefits should be considered and other factors.
Here are some of the things you should know before making that significant house transaction in Lagos.
- Location Of The House:
Location of the house is a significant determining factor based on the following:
Proximity: Proximity to your primary locations such as your workplace, regular leisure spots, children’s schools, place of worship, markets, etc. This is important because Lagos has a congestion and traffic issue that is yet to be solved. Living close to places where you visit often is a great way to avoid being stuck in traffic for hours.
- Accessibility: Ensure that the location is easily accessible to the good roads, water supply, electricity regularity in that area. You don’t want to buy a house in a place that doesn’t have a transformer. Also, some real estate developers in Lagos now include solar power as an option for homeowners. This option is worth exploring if you can afford it, as it is somewhat more stable than the conventional source of electricity.
- Environment: The general environment is also vital. Consider the security and crime rate in that region. Somewhere that is popular for touting can be very dangerous.
The general idea here is to be comfortable in your house and be fully informed of all the possible problems or challenges that may arise from the choice of location, and be prepared to tackle them.
- Cost Of The House
The cost of the house depends on the location as well as other things.
- Type of House: The type of house you plan to buy will determine the cost you’ll be undertaken. The house’s size and structure, whether a duplex or bungalow, the number of rooms, features in the home such as a garage, boys quarters, etc. All these determine the cost of the house.
- State of the Property: By this, we mean the condition of the house. Sometimes old or uncompleted homes are sold, and it is left to the new buyer to fix up the house. When you consider the state of the house, you know the costs you’ll incur on renovations, which makes it easier to plan for the purchase.
- Value of the House: One major thing to consider is the value of the home you intend to buy. The value of a house is usually influenced by the location, size, structure, etc. For example, a place located in Ikoyi will have a much higher value than a house situated in Makoko. This is because areas like Ikoyi and Lagos Island as a whole are generally considered high brow areas; therefore, the overall property value will always be on the rise in these areas. Considering the present and future value of the home helps you make a wiser decision in terms of future investments or possible resale.
- Payment Plan
After considering all possible costs, it is essential to begin thinking of a realistic payment plan. Buying a house in Lagos is usually very expensive, and very few people can make full one-off payment on a house in Lagos. Here are a few options to finance your house purchase:
- Financial Institutions: Some financial institutions such as banks, microfinance banks, mortgage homes, etc., offer loans and mortgages to finance the purchase of houses and properties. They usually offer these loans at the prevailing interest rate and a specified period of payment. Failure to pay the loan will lead to the confiscation of the purchased property by these financial institutions, so it is vital to draw out a realistic payment plan that can work.
- Real Estate Companies: Many real estate companies in Lagos now understand that property is expensive, so they have devised payment options for houses on the market. Some of them require a down payment before you can claim ownership of the house, while others will only require you to begin paying in installments. The payment plan usually runs for a couple of years, depending on the cost of the property and the agreed time frame.
Before you settle on a payment option, you should consider factors such as interest rates, flexible payment options, loan and mortgage amounts that are accessible to you.
- A Trusted Real Estate Agent
For many countries, it is not possible to buy a property without a real estate agent or a realtor. Still, here in Nigeria, our laws permit us to make real estate transactions without going through the appropriate professional. This can work fine for some people, but it is usually best to make use of a realtor’s services to enjoy some of these benefits:
- They are conversant with the property buying process and know the property laws that might affect you.
- They will guide you through the buying process and do the necessary groundwork and primary search for a property that will meet your needs and requirements.
- Do Your Homework
Lastly, it is essential to do the necessary research on the house you want to purchase. You can ask your realtor questions about the property, the history, how long it has been on the market, familiarize yourself with the environment. This will give you clarity on whether you are being charged the appropriate amount for the property or not. Also, ensure you work with a reputable real estate company to avoid any issues.
In the Lagos real estate market, there have been several fraud stories. Houses being sold to more than one person simultaneously, properties sold without the right documents, which include the certificate of occupancy (which the state government issues to the property owners and buyers), deed of assignment, deed of mortgage or deed of lease, survey plan, etc., and others. So, it is incredibly critical that you take your time when you are purchasing a house. Don’t hurry to make a payment; instead, take your time and ensure due process is followed. When you follow these tips meticulously, you should be able to purchase a house in Lagos with ease.