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But before you have a go at Lagos’s real estate sector, you’ll want to know what to look out for when seeking decent opportunities in the space. In this article, we’ll run through 5 questions you should answer before picking a location in Lagos to invest in (whether you’re buying an existing property or building from scratch).
Are the Right Land Titles and Documents Available?Land titles are legal documents that confirm the ownership of land by a party. Various land titles are considered appropriate for a specific property. Examples of land titles officially recognized in Lagos include Certificate of Occupancy (C of O), Excision, Governor’s Consent, and Letter of Administration. Depending on the nature of the property you’d like to buy, the current holder of that property should have at least one of the above titles indicating that they are rightful owners of the land. In addition, you’ll need to get the relevant survey plan, deed of assignment, contract of sale, and purchase receipt when buying and acquiring land in Lagos.
How Accessible is the Property?Whatever you’re looking to invest in—whether it is land or a building –you’ll want its value to appreciate over time. After all, that’s what guarantees that you’ll make a profit if you decide to sell it at some point in the future. A big factor that drives up the value of real estate is its accessibility. The easier it is to get to major locations (like key highways, for instance) from a spot, the more valuable that spot is likely to get over time. People who will live and work there will want to be able to move to other places in the state with ease. So, be sure that there are good access roads connecting to the vicinity of the property you’re thinking about investing in.
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Who is Moving In?You will also want to think about the income class of the people who are moving (or will be moving) into the area you’d be investing in. As an investor, you’re aiming to reap a decent ROI. Your chances of doing so are heavily dependent on the ability of buyers or tenants of your property to pay a good price or rental fee. You will need these people to be within an income bracket which guarantees that they can settle these bills without hitches. This is why it’s important to work with agents who know the local property market well and can tell what buyer or renter demographic-specific places attract.
What Plans and Regulations are Relevant to the Location?The state government may have designated the space you’re looking to invest in for specific use. For example, they may have mapped it out for residential use or as part of a business district. You should find out what the official plan for that location is and then decide whether it’s in line with your own purposes. If the location you’re thinking about investing in is part of a to-be residential estate, you’ll want to be sure that the structure you’ll be building there is the sort that the estate developer would allow.
How Secure is the Location?Security should be a non-negotiable point for you. Unless you’re sure that crime levels in and around the proposed neighbourhood of your real estate investment are low, you should not commit a naira to it. The safety of your property’s future buyer or renter has to figure prominently in your consideration, as it too will determine the long-term value of your real estate asset.
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Final WordsWe have shared 5 key things you should think about before investing in real estate in Lagos State. If you’re going to buy or build property there, you can work with the tips in this article. They could help you make a decision that’ll yield you substantial returns in good time. Featured Image Source: Buy Land Lagos
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