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Monday, 16 November 2015

5 Simple Tips on How to Invest on Land



When you invest in land, you give yourself an opportunity to build a house to your taste. That is why a piece of land sometimes cost as much as a completed house in certain neighborhoods.
Now the big question: what are some things to consider before buying a piece of land?
The five tips below cover some basic things to
take into consideration.

Tip 1: The purpose of the Land.
One of the very first thing to consider is the purpose of the land.
Is the land for residential or commercial purpose?
If the land is for commercial purpose, this will affect your choice of location because it is common knowledge that some locations are better for business purpose than others.
Another thing to consider is whether the land is for investment purpose (speculative investing) or whether it’s a plot of land you wish to build on immediately.
This obviously affects how you see the land and how much you’re prepared to pay for it.
Therefore when looking for available land for sale, be sure to keep in mind your purpose for seeking to buy a piece of land instead of just buying a house.

Tip 2: Your budget
How must can you afford or how much are you prepared to spend?
Remember . . . money is everything (or almost everything).
If you have unlimited cash, you can buy property anywhere you wish without batting an eyelid.
Unfortunately, most people have limited budget. And this limits the locations they can invest in.

Tip 3: The Title
There are different title documents available for property for sale in Lagos Nigeria.
You will find that many land for sale have just "family receipt" and survey plan. The family receipt is the receipt issued to the buyer by the original owners of the land referred to as omoniles.
Sometimes there can be a debate as to who the original owners are. That is why a lot of people prefer land with C of O.
So, the question is . . . are you prepared to buy a property without C of O? Or must it be a property with C of O.
Note that if you find a property that you like, you can always perfect your title and get a valid C of O.

Tip 4: The Person Selling.
Who is selling the property?
The owner's brother, wife, or some other relative?
Is the owner still alive or dead?
Please get some ID before making payment for any land for sale you decide to buy.

Tip 5: Compare Options Available To You
Don't just see a property and decide that this is what you should buy.
Ask to see two or three properties before making a final decision.
Wait. This does not mean you have to see as many properties as possible before making a choice.
The truth is . . . if you live in Lagos Nigeria, you will know a good deal when you see it.
Another important point.
Don't be swerved from doing due diligence because you find a cheap property that is priced far below the real estate market price for the same kind of property in the same area. "Dead cheap" can be deadly.
Why?
Well, children and relatives of home owners who somehow get access to where the property documents are located sometimes become greedy and try to quickly sell off someone else property at dead cheap price.
If you buy into this kind of "stolen property", you buy into trouble.
So, be careful. Do due diligence before buying a piece of land whether cheap or expensive.

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