Being a landowner is one of the best things that could ever happen to anyone. It involves taking a big step and spending a lot of money to finally make this smart move.

To buy land, whether you want to build a house or it’s simply for investment purposes, you need to carefully consider some factors that influence your buying decisions. Take your time, don’t rush into it and follow this guide so you can make a purchase that is worth every penny spent.

1. Purpose of Buying Land

Before you buy your land, you need to be clear about why you’re buying it. Are you buying the land to build a home, for commercial development, or as a long-term investment? Understanding your purpose will guide your decisions on whether or not you want to buy, while considering the location, size, and even budget of the property. For example, when you buy land that you want to use for residential purposes, it would definitely have different considerations than a land you intend to use for agricultural use.

 

2. Location

The location of the land is another important thing you need to know about. You need to understand that the location affects the value of that property. You have to consider factors such as accessibility, proximity to essential services (like hospitals, schools, and markets), and even the overall development of the area.

Here in Nigeria, lands in cities like Lagos and Abuja tend to be more expensive and they also offer better returns on investment because lands in these cities are always in high demand. Lands in developing or under-developing areas would have lower prices, but it still has the potential for appreciation over time as development grows, that’s the thing about real estate!

 

3. Land Ownership and Title Documentations

You need to know about the land ownership and title documentations before buying land in Nigeria and verify them. This cannot be overemphasized! You have to ensure that your agent or the person has a legitimate claim to the land you’re buying, and that the land is not under government acquisition, committed, or in dispute. There are some primary documents you need to verify, they include:

• Certificate of Occupancy (C of O): This document is issued by the government, confirming that the land is free from any government acquisition or encumbrance and that the holder has the right to occupy the land.
• Deed of Assignment: This document shows the transfer of ownership from the original owner to the current seller. It is crucial to verify that this document is valid and that it has been duly registered with the appropriate land registry.
• Survey Plan: This document outlines the exact boundaries of the land. Ensure that the survey plan is registered and that it accurately reflects the size and location of the land.
• Governor’s Consent: In some cases, especially when buying from a previous owner, the transfer of ownership needs to be ratified by the state governor. The Governor’s Consent is a legal requirement under the Land Use Act of 1978.

 

4. Land Feasibility

Conduct a thorough feasibility study to assess the land’s suitability so you see if it fits your purpose. It includes understanding the topography of the land, soil type, and whether or not the land is prone to flooding. The topography, whether flat or high, will affect construction costs and may require additional expenses for leveling or drainage.

 

5. Budget

When planning your budget, you have to account for every cost and additional costs beyond the purchase price of the land. Some of these costs include:

• Legal fees: For drafting of agreements and processing of title documents.
• Survey and registration fees: Costs for obtaining and registering the survey plan and other documents.
• Development levies: In some areas, local authorities may charge development fees for infrastructure such as roads and drainage.
• Cost of fencing: Fencing the land can help protect it from encroachment and establish clear boundaries.

Make sure you add the additional costs and add it up and include it into your overall budget.

 

6. Land Sizes

In Nigeria, land sizes are usually measured in square meters (sqm) or plots, with a standard plot size usually being 450 sqm to 600 sqm, depending on the location. However, these land sizes can vary widely, especially in local areas or land parcels that are well shaped.

Before purchasing, please ensure that the land size meets your needs, whether for building a home, setting up a business, or even agricultural use. It’s also important to verify the land size through a registered surveyor to avoid issues between you and your agent or seller.

 

7. Land Appreciation

Land appreciation refers to the increase in the value of land over time. In Nigeria, land appreciation can be influenced by various factors such as location, infrastructure development, population growth, and government policies. Urban areas and rapidly developing regions tend to experience higher rates of appreciation, making them attractive for investors looking for long-term profit.

If you want to monitor your land’s potential for appreciation, research the area’s development plans, including upcoming projects like new roads, commercial hubs, or residential estates. Areas marked for future development typically see an increase in demand, driving up land prices.

 

8. Infrastructure

The availability and quality of infrastructure play a significant role in determining the value and usability of land. Infrastructure includes roads, drainage systems, electricity, water supply, and waste management. Land in areas with well-developed infrastructure is generally more expensive but offers greater convenience and better living or working conditions.

When evaluating infrastructure, consider the quality of access roads. Land located on or near well-maintained roads is more accessible and usually has higher resale value. Also, check the availability of reliable electricity and water supply, as these are essential for both residential and commercial purposes. In some areas, you may need to factor in the cost of developing infrastructure yourself, such as drilling a borehole or installing solar power.

 

9. Availability of Social Amenities

Social amenities, such as schools, hospitals, markets, and recreational facilities, significantly enhance the value of land and the quality of life in any area. Land located near essential services is more desirable, particularly for residential buyers who prioritize convenience and access to daily necessities.

Before purchasing land, assess the availability and quality of social amenities in the vicinity. Proximity to good schools and healthcare facilities can be a major advantage, especially for families. Similarly, access to markets, shopping centers, and entertainment options can enhance the appeal of the area.

 

10. Security

Land in areas with a high crime rate or prone to community conflicts can be risky investments. Make sure you research the security situation of the area, including any history of land disputes, theft, or violence. Also check if it has claims of ownership or issues related to communal land. Ensuring that the land has a clear and undisputed title is essential so you can avoid legal battles.

Additionally, check if the area has security infrastructures, such as local police stations, community vigilante groups, and private security services. This way, you have a piece of land and your peace of mind.