5 MISTAKES NIGERIANS IN ABROAD MAKES WHEN BUYING PROPERTIES IN NIGERIA
To live and work in a foreign country comes with its challenges. However, no one wants to lose its hard-earned resources or income due to wrong investment. Meanwhile, it’s without a doubt that 55% of Nigerians living abroad definitely love to invest in Nigeria but sometimes they go about it the wrong way and make serious mistakes.
Just like a story (real-life story) that was published on Nairaland Forum about a US-based Nigerian man who invested a huge sum of N787 Million in a landed property at Sangotedo in Lagos state. And was presented with a fake document for the land, imagine losing this amount of money to fraudsters. Meanwhile, this kind of mistake can easily be avoidable once the investor is well equipped with the right information and knowledge.
Thus, these are the mistakes I want us to discuss in this article. Knowing and being able to avoid these mistakes can help save one from lots of headaches and stress trying to recover your lost fund.
This has been one of the huge sets back many diasporas have. Most state, “I’ll invest when I’m back in Nigeria”. But they don’t remember that real estate doesn’t wait for anyone. For instance, in this present developing area of Lagos state that’s Ibeju Lekki, the selling price of the most landed property has been appreciated by 20% – 30% for the past 5 years and still appreciating because of the massive ongoing development in the area.
For example, we have the Dangote Refinery being set-up in that location which is intended to be Africa’s biggest asset with an estimated value of $9bn. Also, there’s a seaport, Lekki international airport, and Lekki free trade zone being set-up by the Lagos state government. Because of these developments and other potentials, the place is now referred to as the new Lagos and land appreciation rate is increasing daily.
With the rate property appreciates especially in developing or developed areas, a minute delay can cause one to be purchasing a property at a higher cost than it should be. For instance, as of 2016 a plot at Amen Estate Phase 2 was selling for N10m. Then, in 2018 it was sold for N12m but right now it’s selling for N25m. So, if there’s any diaspora who invested in Amen Estate Phase 2 in 2016 when it was sold for N10m, rather than wait anytime he/she comes to Nigeria to invest in the property. Then, the person must have saved the additional cost over these years, and the property has also appreciated by 150%.
Hence, knowing the right time to invest in a property and bury that procrastination idea is a great deal.
2.INVESTING OUT OF EMOTION:
It’s difficult not to let your heart rule your head when purchasing an investment property. Don’t be surprise that I raised this point, we have a lot of people especially those living outside Nigeria make the same mistake over and over again of investing out of emotion not because they need to invest in that property. Most diaspora may invest in a property they don’t know anything about or didn’t do their background research on. But simply invested because either a friend or family introduce them to it, or out of fear of missing out.
This can be a costly mistake, even though there’s nothing wrong with investing in a property being introduced to you by a friend or family. However, ensure to do thorough research on the product and make sure it worth spending on. Don’t allow to be pushed by that “gut feel” it mostly occurs out of anxiety or fear. Take your time (but don’t procrastinate) to research the property you want to invest in, seek expert advice and make an unbiased but right decision.
3.NO IN-DEPTH KNOWLEDGE
Before investing in any property, it’s best to have first-class information about the property. This helps one in making the right decision whether to invest in it or not. Most Nigerians living abroad hardly know much about the property. For instance, the specific location and even the surrounding vicinity can help determine if its best for the purpose of your investment. The property valuation, potentials, land documents/title are other option to consider.
4. NO THOROUGH BACKGROUND RESEARCH
It’s very necessary that you undergo thorough research on the property investment before making any move. Most diasporas hardly partakes in any thorough background rather 65% of them depend on the research carried out by their family or friends without involving any professional services to help investigate the property they want to invest in.And this can be hazardous if care is not taken, you might be purchasing a government property without any authorization to build on it or buying land already bought by someone else.
5.RELATIVE OR FRIENDS CONCLUDING ON THE PROPERTY
It’s fine to have your relative or friends inspect the property to invest. But, don’t allow them to make the final conclusion for you. This is because they may be ruining your property acquisition procedure if not handled with care. Also, most don’t have a personal interest in it and so may not make the right decision when it comes to the choice of investment. Some even make the mistake of making payment through their relatives
WHAT THEN IS THE BEST WAY TO GO ABOUT IT?
Here’s the best great strategy for Nigerian’s living abroad to buy their property without physical inspection;
Employ the services of a professional like a lawyer or well-trusted Realtor to inspect the place with your representative at a convenient time. Then, instruct them to go live (I mean a live video record) so to enable you to inspect the property with them. Also, that of the neighborhood where the property is located.
Next, is to choose the desired plot that’s where you’ll be allocated together via the live video. Then, proceed with the land document but make sure that the land/property document has been duly verified and authorized by the government. This can be carried out by your professional lawyer, not just your family or friend. Then, you can proceed with the payment to the official payment channel of the Real Estate Company. It’s not advisable to make payment through your relative except on the ground of total trust.
Dennis Isong Helps Individuals Invest Right In Real Estate.For Questions On This Article Or Enquiring About Real Estate Email: Dennis@Landproperty.ng or Whatsapp/Call +2348164741041