Category - Real Estate 101

Property hunting tips, moving tips and guides, and real estate must-reads

1
What to know before buying land in Nigeria.
2
2018 Real Estate Trend Watch
3
Tenant Rights
4
Some Challenges Developers’ Face in the built environment
5
Reasons Why You Should Be Investing In Land
6
Things to Consider Before Buying a Land
7
Benefit of Buying a House During Recession
8
The Four Phases of the Real Estate Cycle.
9
Things to Know About Home Finance and Real Estate Investing
10
How to Avoid Getting Scammed When Renting an Apartment in Lagos

What to know before buying land in Nigeria.

When purchasing land or property in Nigeria, a prospective purchaser of any property (or normally his solicitor) should have two main concerns:

First, he or she must be sure that the vendor of the property is really entitled to sell it. Thus, the buyer must first insist that the vendor proves that his legal title to the land is good and that he can pass to the purchaser the land/ property which he is offering to sell.

Secondly, the purchaser will want to know whether any third parties have rights to the land which might interfere with his intended use of it. These third-party rights might include covenants restricting usage, a right of way, tree preservation order, or even mortgages.

Concerns about these matters will lead the purchaser or his representatives, to make extensive inquiries before the purchase of the property is finally concluded.


There are however many factors one needs to consider before buying a land in Nigeria these ranges from:


i. The size of the land,
ii. The soil type,
iii. The location of the land which is very important,
iv. The purpose which the land will be used for,
v. Accessibility of such land i.e proximity to access road,
vi. The price of the land,
vii. The legal papers available in respect of the land,
viii. The environment, as well as the security conditions of the area, should be well evaluated before engaging in such a transaction.
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Tenant Rights

Tenant rights are more important than you probably realize and the first step towards protecting your rights as a tenant is to know what those rights are. Without knowing these rights, you put yourself at the mercy of landlords and caretakers in Nigeria. Before we delve into your rights as a tenant, let us start by establishing who a tenant is within the ambit of the law as well as the real estate space. A tenant is a person who occupies land or property rented from a landlord and is subject to the payment of rent. With this established, let us proceed to examine tenant rights and what they mean to you as a tenant in Nigeria.

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Some Challenges Developers’ Face in the built environment

Here are the some challenges developers’ faces in the built environment

  1. The issues of Omo-onile: You have to part with a lot of money to get land and be able to use the land. If it’s a country where the government has got full control according to the 1978 Land Use Act, we would get assistance from them as partners whereby they provide the land while we provide the houses. If we can get the cost of land out of the budget of housing, we would be able to sell them at a very reduced rate. But in a situation whereby we have to pay for the land, taxes and what have you, I’m sorry we can’t have the affordable housing we wish for.
  2. Getting good people to work with: People are difficult to work with. A lot of them don’t want to work but want to get paid. To get the right people has always been difficult. A wise man once said you must earn your keep and keep your earn. There are still good people though. It’s just difficult to get them
  3. Contending with economic policies: This is a big task. The government sometimes come up with policies that could send you back to your village but you have to be able to manoeuver your way around it and still find a way to comply. Some of these policies have killed so many businesses but nonetheless, the government still tries to introduce policies that would favour us. Although, most of the policies they came up with so far have crippled our businesses.
  4. Funds: For instance, a house that you ordinarily want to sell for 40 million naira will have to be sold for as low as 20 million because you need off-takers to kick-start the business. When you get the money, you don’t look at the margin, you just want to build and deliver. At the end of the day, you would have lost a lot of money before you start selling at the original price.
  5. Infrastructure development: In a situation where you have to provide your roads, drainage, poles, strings, transformers, light etc. there is no way you can regulate your price. Infrastructural development is a huge burden which has really affected this business a great deal because if you don’t have what it takes to provide all these, you will be out of the business
  6. Trust: Trust has been abused by many developers. There are a whole lot of Nigerians in diaspora who wants to come back home and invest but they have been swindled by families and relatives. Their trust has been betrayed and they have become so hard to convince.

Image source: www.naij.com

Reasons Why You Should Be Investing In Land

Everyone touts about the benefits of investing in real estate, but what about land? The general consensus has always been that land is not a worthwhile investment. Why? People falsely believe that land won’t produce income. It just sits there. It’s a boring investment. Land can produce a serious cash flow, and right now, it’s one of the best investments you can make. Here are some few reasons why you should invest in land.

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Things to Consider Before Buying a Land

It can sometimes be a challenge to find a home on the market that checks off all the boxes on

your list of must-haves. If that’s the case, there’s always the option to buy a piece of land and build your own home, customizing it from top to bottom to your heart’s desire. But while buying vacant land is a potential alternative to buying resale, there are certain precautions you will need to take before you sign on the dotted line. Without in-depth research into the land you have your eye on, your enjoyment of your new home can be negatively affected. Prior to purchasing land to build on, be sure to take the following factors into consideration first.

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The Four Phases of the Real Estate Cycle.

Depicted above is a single cycle. The end of the recession phase connects to the beginning of the recovery phase to form the continuous wave pattern. Understanding the progression of each phase within the cycle is critical in being able to identify investment opportunities, as well as risks that can arise, with heightened sensitivity when phases are on the verge of transitioning.

One of the unique aspects of commercial real estate is that investors can invest successfully across all four phases of the cycle. However, understanding whether a cycle is climbing closer to a market peak, or starting down the slippery slope towards a market low can affect a variety of factors, such as:

  1. Pairing investment strategy to phase
  2. Holding periods and exit strategies
  3. Return expectations
  4. Performance as it relates to income and appreciation
  5. Timing of capital improvements

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Things to Know About Home Finance and Real Estate Investing

Home loans are the top home financing options for enabling people to fulfill the dream of owning a home. While financial institutions are willing to lend, you need to be aware of how this type of home finance works to avoid disappointment. Familiarizing yourself with a financial product is essential before committing to a transaction or signing a legally binding document. The following are basic things you need to put in mind before applying for a mortgage:

Loan Eligibility

It is important to find out what the specific lending criteria is. Factors that affect your eligibility generally depend on the terms and conditions of particular lenders. Some lenders are more stringent than others and factors range from existing liabilities to your financial capability. Read More

How to Avoid Getting Scammed When Renting an Apartment in Lagos

 

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If you have ever lived in Lagos, you don’t need a crash course to know that  real estate  agents, landlords and omo-oniles defraud people of their hard-earned money every other day. With the demand for accommodation rising far more than supply, it’s no wonder that some people can be easy targets since they are in desperate need of the properties at the time.

Sometimes, real estate agents also perpetuate this kind of scam by renting out an apartment  that is currently occupied to unsuspecting tenement seekers. Another scam agents perpetuate, is to rent houses that are for sale to people. Unsuspecting are then swindled of their hard earned money. Sometimes, it may not even be the agents, perpetuating the fraud, it may be  the landlord, his son, or even a ‘sharp guy’ who stays around. Read More

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