It is no secret that purchasing a home in Lagos can come with a hefty price tag, especially if your tastes lean toward the luxurious side. However, what many overlook are the hidden costs that can catch you off guard if you’re not familiar with the property acquisition process. While some may view these additional charges as sinister, others see them as standard business practices without malicious intent. Defined as additional fees added on that may not be initially apparent, hidden charges or undisclosed fees can significantly impact your budget when buying a property.

The excitement of buying a house can often overshadow the financial intricacies involved, leading first-time buyers to focus on aesthetics rather than fiscal responsibility. It’s not uncommon for individuals to dip into their savings or emergency funds, only to realize later that there are numerous expenses beyond the property’s purchase price.

Let’s delve into some of the hidden costs associated with buying a property in Lagos, so you can better prepare and create a more realistic budget:

Legal Fees:

Many first-time homebuyers overlook the legal aspect of property acquisition. Engaging the services of a lawyer is essential for ensuring a smooth transfer of property ownership, verifying legal documents, and drafting contracts. While legal fees typically amount to 1-2% of the property’s price, this expense is crucial for safeguarding against fraud.

Survey Fees:

Before finalizing a property purchase, it’s advisable to enlist the services of a surveyor to assess the land’s boundaries and identify potential disputes or encroachments. Though survey fees vary depending on factors such as location and property type, they are a worthwhile investment compared to the risks of not conducting a survey.

Registration Fees:

Registering your new property with the Lagos State Land Registry is a necessary step to inform the government of the change in ownership. This process involves paying stamp duty and registration fees, typically amounting to 3-5% of the purchase price.

Homeowners Insurance:

Protecting your investment with homeowners insurance is essential for safeguarding against unforeseen events and providing liability coverage. While some may view it as an unnecessary expense, homeowners insurance offers invaluable peace of mind in an uncertain world.

Renovations and Upgrades:

Personalizing your new home often entails renovations and upgrades to suit your preferences. However, unforeseen expenses may arise if developers have cut corners or used subpar materials. Conducting a thorough inspection before purchase can help mitigate potential issues.

 

By considering these hidden costs upfront, you can approach the home buying process with confidence, knowing that you’ve accounted for every possible expense. If you’re ready to take the plunge into homeownership in Lagos, our experienced agents are here to guide you every step of the way.

 

 

 

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