Investing in land is one of the coolest means to make cool cash within a short period of time with less stress.
However, lack of knowledge of people in the strategy to venture into the trade has hindered people from making a fortune out of this venture. Thus, in this article, I have summarized the whole process into four basic steps and these steps are as listed below;
Firstly, you have to find a land having potential.
What does a land with potential mean?
Well, I’d be discussing that later in this content.
Secondly, make the purchase of that land you found.
Afterwards, wait for the land to appreciate in value. This usually takes years.
After the land must have appreciated, to a satisfactory extent, you can then sell it off ( Boom – SALES !)
These are simply the four steps needed to invest in land, and I’d think I should discuss them in more details.
The four steps in investing inland ;
I. Find a land having potential
As stated above, the first step to investing in land, is to find a land having a valuable potential.
And what does a land with valuable potential mean?
Well, a land having valuable potential is capable of selling at a significantly higher price in some years’ time.
For instance, if a land that sells for N200,000 in 2020, can sell for N3.40 million in 10 years, that kind of land is what we say has valuable potential.
Giving a real-world example, about two decades ago,
Lekki Phase 1 was a very bushy place.
Lands in the area sold at very low prices. But over the course of 15 to 20 years, the price of lands in that area have grown by as high as 2,000 per cent. In other words, if someone had invested about N200,000 back then, their investment should now be worth about N4.20 million.
For those who wonder where they could get such a land, we have many of them in Lagos.
In fact, it’s recommended to avoid lands in other states, if you wouldn’t like to wait for donkey years, before they appreciate. And even when buying lands in Lagos, there are places you should consider and places you shouldn’t.
You should check out this article about some of the best places in Lagos to invest in land.
II. Purchase the land
The next step, after finding a good land to buy, is to purchase that land.
However, before purchasing the land, understand what kind of land it is, to avoid falling victim of scammers of land speculators. Not all lands can be bought; in other words, if you buy certain lands, you’re only giving out your money.
For instance, lands tagged “Excision in Process” sell at very affordable prices, but there are some risks associated with them. So before buying such a land, you should understand the risk.
We also have some lands called committed lands [or committed acquisition]; lands having this title should never be bought.
To develop a very good understanding of what lands you can buy and what lands you shouldn’t buy, you should consider reading this article on Land types in Nigeria.
Another important thing you should note is that when buying a land, you should use the service of a surveyor.
Some people think the services of surveyors can be avoided. While you can truly avoid their services, it’s not a wise thing to do. Surveyors are the professionals who can help spot a wide range of technical problems with the land you’re buying. So to eliminate some risks of losing your money, you should use the service of a surveyor.
Another thing I feel is important to state is that you should avoid omoniles as much as possible.
Lands brought from omoniles often have problems associated with them. And if you wouldn’t want to risk losing your money, you should rather deal with real estate developers.
I’m not saying people never have issues with real estate developers; it’s just that problems often had with trusted real estate developers are always minimal.
Lastly,
When buying a good land [a land backed by a Gazette, a C of O, or a Governor’s consent], ensure you get a Deed of Sales/Assignment that has room for the Governor’s consent. Proof of payment alone wouldn’t be enough to claim legal ownership to the land you bought.
For those who wonder what Governor’s consent mean, you can check out this article on Land titles in Nigeria.
III. Wait for as long as you like
After purchasing a land having potential, the next thing to do, is to just wait. This stage is often what takes the most time, but there’s very little or no work involved.
There’s no specific time you have to wait for, before selling off your land. But generally, people wait for as low as two years, and as high as 12 years.
Remember,
The more you wait the more value the land gets.
So when you ask how long you have to wait, I’m simply going to ask you to wait for as long as you can. If it’s 4 years, fine. And if it’s 35 years that means more money and higher ROI.
IV. Sell it off
The last step is to sell off your land after it must have appreciated. And selling the land should be little or no problem.
By the time you’re ready to sell off the land, there should be high demand for lands in that area. In other words, within 2-6 months on average, you should have found a good buyer.
Why you should invest in the land business
I understand we have people having money to invest, but still doubt whether the land business is a great form of investment or not. And if you’re one of such people, here are some reasons that might convince you.
Easy to get into
A top reason why I feel everyone should invest in land, is that it is pretty easy to get into. A solid understanding of the land business is a thing you can have within two months. And even when you have to get learning materials, you wouldn’t have to pay anything, as we already have enough information on the web.
In short, since it’s very easy to get into, why not try it out. At least, just try to see if you’d like it or not.
You can start with less than a million
Another reason you should consider investing is that it takes less than a million Naira to take part in the land business.
There’s no doubt about the fact that most lands sell for over N1.00 million. But we still have many of them which sell for less than a million.
But that’s not all. If you don’t have the one-time cost of a land, it’s possible to make instalment payment.
In other words, let’s say the total cost of owning a plot of land is N820,000, you’d find developers who’d allow you to pay over a period of 9 months.
Little or no management work
The amount of management work involved in this form of investment is another reason why most people should choose land as a means of investment, over many other forms.
When investing in many other things, you’d not only have to put your money in them, you’d also have to do some management works like having meetings, making periodical calls, etc.
But when it comes to the land business, there’s hardly anything like that. All you have to do, is to make your investment, and wait for it to grow.
Guaranteed Return on Investment [ROI]
In the land business, investors are guaranteed returns on their investments, not all investments can guarantee this.
However,
This is not to mean it’s impossible to lose your money in the land business. In fact, I know of people who have lost their money in the business. But very often, when people lose their money in this business, it’s often due to their lack of understanding of the business or by not doing their primary assignment.
In short, if you take your time to understand the land business, be assured you’d make a good profit from your investment.
Closing
The land business is very hot and lucrative in Nigeria. If you follow every tip I’ve given in this article, I’m pretty confident you’d come out a successful investor. But before making any investment, please be sure you understand the business pretty well, to avoid losing your money.
If you feel you need the hand of trusted agency who knows the in and out on land purchase in Lagos and make the whole experience a hassle one;
We can help 😊😊.
You should Contact Us Today!
