Things to Consider When Buying Land For Investment Purposes

Things to Consider When Buying Land For Investment Purposes

Many millionaires and landlords in Lekki and Ibeju-Lekki today became wealthy by discovering and investing in land investments very early on when the risk and acquisition cost were both on the low, low.

That has opened the eyes of many, not just in Lagos, but in other cities, to acquire land as a form of investment. Leaving it until it appreciates enough to give them bountiful ROI.

The sad thing is that the cons have also taken advantage of that to mislead and even defraud people. It will be heartbreaking for many to realize that after waiting for 10 years or more, they discovered they never really had any land all the while, or that what they were told about the locations of their investment weren’t true.

To avoid being a part of those that have told such sad tales, you must consider a few things before investing in buying land.

Do Your Homework
If you value money and work hard for it, then you will not want to gather just to throw away. This is why you will do your homework before buying that land.

Find out who is selling the land (person, family, or company)? What rights do they have over the land? Can you confirm their claims to the right? What government title does the land have?

Follow Your Instinct
Before, it used to be that you can be assured of genuineness when buying from a registered real estate company. But that isn’t the case anymore as some companies have been known to defraud unsuspecting members of the public by selling imaginary lands and lands that they have no approval to sell.

Therefore, follow your instinct. Don’t shut down your reasoning regardless of who you’re buying from. if you’re having doubts, clarify them.

If you’ve done your homework thoroughly, you’d leave no stone unturned, you’d check with the right government agencies and double-check the integrity of real estate firms, family or persons you want to buy from.

Location
Since you’re buying for the future, you’re not considering the location for what it currently is, but for what it can be. What would be the best fit for it, commercial or residential? How developed is it, and how long do you think you’d have to wait for your investment to yield a reasonable ROI. What would that location look like in 10 or 20 years, judging from the Lekki and Ibeju-Lekki revolution?

Future Promise
Land appreciates based on prospects. So, find out what plans the government or any multinational company may have for such areas, and how it will impact the real estate value of such areas when those plans are executed.

Payment Mode
Until payment is made, you’ve not purchased land. but in making payment, avoid paying in cash or even checks. this is because necessary documentation is needed, which is still one of the benefits of buying from a real estate firm.

Proper Documentation, Signatory, and Next Of Kin
You’re going to leave that land bare for a very long time, and the truth is no one knows what tomorrow holds. It is therefore important to have proper documentation in your possession.

Not just that, if you don’t have a safe place to keep them, use the bank.

If you’re married, let your spouse be fully aware and also be a signatory to this piece of property you’re acquiring for the future. Enlist the names of your next-of-kin where necessary as well.

Some people have bought properties for the future and didn’t live long enough to see that future. They lost their life, their hard-earned money, and even their investment because they are all alone in the deal with no other person with them. If they have families, their family will continue not knowing that a land investment was made somewhere by the deceased.

While we pray to live long and reap the fruit of our labour, we also have to be thoughtful and prepared for the inevitable

In Conclusion
Long-term land investment can span up to 10 years, 20 years, or even more. But if the investment was right, the ROI will definitely worth the wait. But before you can make such an investment and commitment to wait, it is helpful to do your due diligence so that you don’t wait in vain.

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